West Bengal Authority of Advance Ruling (AAR) mentioned that 1.5% GST is needed to be imposed via customers for the selling of flats instead where the complete acknowledgment has been obtained post to issue of the completion certificate.
The petitioner is the owner of Kayal Infra which is engaged in the construction of the property at Ghosh Hat, Madhaitala, P.S. & P.O. Katwa under Katwa Municipality, District-PurbaBardhaman, West Bengal.
The petitioner seeks the advance ruling upon the grounds of whether the under-construction property is a Residential Real Estate Project (RREP) as mentioned under Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 amended vide Notification No. 03/2019-Central tax (rate) dated 29.03.2019 if the mentioned property beneath construction comes under the cheap residential apartment which is described beneath the mentioned notification and if the GST rate is to be amended from the costumes for the sale of the flats in the mentioned property must be 1.5% (0.75% CGST and 0.75% SGST), which gets diminished by 1/3 rd to in the value of land or it should be 7.5% (3.75% CGST and 3.75% SGST), as further reduced by 1/3 rd to factor in the land value.
The two judges Brajesh Kumar Singh and Jyoti Banik held that the project is pointed towards the quick application that is under construction via petitioner is a Residential Real Estate Project (RREP) as described under GST Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 and amended vide Notification No. 03/2019-Central tax (rate) on 29.03.2019. The apartments in the mentioned project are deliberated as the cheap residential apartment described under the prescribed notification.
AAR held that “GST rate to be charged from customers for sale of flats in the said project, except where the entire consideration has been received after issuance of the completion certificate, where required, by the competent authority or after its first occupation, whichever is earlier, shall be 1.5% (0.75% CGST and 0.75% SGST), as further reduced by 1/3 rd to factor in the value of land,”
