Case Law Details
In re Yash Nirman Engineers & Contractor (GST AAR Maharashtra)
Question :- Whether the construction service provided by M/s. Yash Nirman Engineers and Contractors to M/s. Lakhani Builders Pvt. Ltd under the project ” La-Riveria” qualifies for application of lower rate of CGST@6% and SGST @ 6% as provided in SI. No: 3- Item (V) – sub item(da) vide notification no: 01/2018-CT (Rate) dated 25-01-2018?
Applicant has not been given the entire contract for construction of complete to houses. Probably the carpentry work like making of doors, etc, electrical work, etc does not seem to have been given to them. However we also find that the job allotted to them are pertaining to affordable housing since the each and every one of the apartments are less than 60 sq. mtrs. We find that entry (v) (da) of Notification 01/2018, mentioned above, no-where restricts the benefit to a ‘Developer’ only. The Notification entry is qua the supply of service and not qua the person and therefore once a project qualifies as an AHP, the benefit of concessional rate of tax would be available in respect of works contract services pertaining to Low Cost Houses, irrespective of it being supplied by the Developer or the Contractor. Hence, in view of the above discussions and facts on record, we find that that the applicant’s case is covered under the tax rate of 12%, under Heading 9954 (Construction Services), (v) (da) of above mentioned Notification No. 11/2017, as amended since the project undertaken by them falls under the definition of “Affordable Housing” as also claimed by them in their application. The benefit of reduced rate would be available to them only in the cases of supply effected after 25.01.2018 i.e. the date on which Notification 1/2018-Central Tax (Rate) was issued and the benefit of this reduced rate would be applicable in case of only those flats which are of carpet area upto 60 sq mtrs., in this scheme, which is covered in the category of affordable housing.
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, MAHARASHTRA
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