The West Bengal Authority of Advance Ruling (AAR) ruled that 12% of GST is liable on the contractors to provide contract service in developing residential housing projects.
The petitioner M/s Primac Projects Pvt Ltd is the owner of residential real estate 
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The petitioner states that half of the total number of flats has the area less than 60sqm of carpet area for each unit. According to the Notification No. 13/06/2009 INF dated 30/03/2017 of Department of Economic Affairs, Government of India is an economical housing project.
The applicant sought advance ruling on the issue of whether Entry No. 3(v)(da) of Notification 11/2017 Central Tax (Rate) dated 28/06/2017 (hereinafter the Rate Notification), as amended time to time, applies to the works contract service 
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Entry No. 3(v)(da) of the Rate Information states that cost-effective homes with a carpet area of 60 square meters per house in an economical housing project which assumes infrastructure status vide declaration to the Government of India, finance ministry Department of Economic Affairs vide F. No. 13/6/2009-INF dated the 30th of March 2017. The 12% GST is to be applied.
In the context of clause 4(xvi) of Notification 11/2017 Central Tax (Rate) dated June 28, 2017, is changed with time is liable for taxation under Entry No. 3(v)(da) of the said notification, gives that practitioner will not choose to pay tax on the rate mentioned in Entry Np.3(ie) or 3(if), and the two judges Susmita Dey and Partha Sarthi Dey state that the service contract for the development of the house units named ‘Akriti’ has reliable residential apartments.
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