Case Law Details
In re Crescent Builders (AAR Kerala)
Rate of tax applicable for services of construction of affordable residential apartments is 1.5% and 7.5% for services of construction of residential apartments other than affordable residential apartments.
Question 1: Whether the rate of 0.75% under Item No. (i) of Entry No. 3 of Notification No. 03/2019 Central Tax (Rate) can be availed in respect of those units which qualify as “Affordable Residential Apartment” in a Residential Real Estate Project” when the project consists of both “Affordable Residential Apartments” as well as apartments other than Affordable Residential Apartments?
Ruling: The applicant is liable to pay GST at the rate of 1.5% [0.75% – CGST + 0.75% – SGST] in respect of the services of construction of affordable residential apartments as per entry at Item (i) and the rate of 7.5% [3.75% -CGST + 3.75% – SGST] in respect of the services of construction of residential apartments other than affordable residential apartments as per entry at Item No. (ia) of Sl No. 3 of Notification No. 11/2017 Central Tax (Rate) dated 28.06.2017 in the Residential Real Estate Project subject to the conditions prescribed under the respective entries.
FULL TEXT OF THE ORDER OF AUTHORITY FOR ADVANCE RULING, KERALA
Please become a Premium member. If you are already a Premium member, login here to access the full content.
