In re Starworth Infrastructure And Construction Limited (GST AAR Karnataka)
Whether the construction service provided by the Applicant to M/s Provident Housing Ltd., under the project ‘Provident Neora, & Provident Capella’ & to M/s Puravankara Ltd., under the project Provident Parksquare” qualifies for application of lower rate of CGST @ 6% and SGST @ 6% as provided in Sl.No.3-Item (V) sub item(da) vide Notification No.11/2017-CT (Rate) dated 28.06.2017?
The construction service provided by the applicant to M/s. Provident Housing Limited under the projects “Provident Neora and Provident Capella” and to M/s. Puravankara Limited under the project “Provident Parksquare,” are liable to tax at the rate of 6% under the CGST and at the rate of 6% under KGST Act as provided in SI.No.3-Item (v)-sub item (da) of Notification No.11/2017-CT (Rate) dated 28.06.2017, if the projects are affordable housing projects and are given the infrastructure status as per notification of Government of India, in Ministry of Finance, Department of Economic Affairs vide F.No. 13/6/2009-INF, dated the 30th March, 2017, else, the services will be liable to tax at the rate of 9% under the CGST Act and at the rate of 9% under KGST Act as provided in SI.No.3-Item (xii) of Notification No.11/2017-CT (Rate) dated 28.06.2017.
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, KARNATAKA
M/s. Starworth Infrastructure and Construction Limited, No. 130/1, Ulsoor Road, Bengaluru-560042 having GSTIN 29AANCS0437M1ZT, have filed an application for Advance Ruling under Section 97 of CGST Act, 2017 read with Rule 104 of CGST Rules, 2017 and Section 97 of KGST Act, 2017 read with Rule 104 of KGST Rules, 2017, in form GST ARA-01 discharging the fee of Rs.5,000/- each under the CGST Act and the KGST Act.
2. The Applicant is a private limited company registered under the provisions of Central Goods and Services Tax Act, 2017 as well as Karnataka Goods and Services Tax Act, 2017 (hereinafter referred to as the CGST Act and KGST/SGST Act respectively) engaged in the business of executing construction contracts.
3. The applicant has sought advance ruling in respect of the following question:-
i. Whether the construction service provided by the Applicant to M/s. Provident Housing Limited under the project “Provident Neora & Provident Capella” & to M/s. Puravankara Limited under the project “Provident Parksquare, ” qualifies for application of lower rate of CGST @ 6% and SGST @ 6% as provided in Sl.No.3-Item (V)-sub item (da) vide Notification No.11/2017-CT (Rate) dated 28.06.2017?
4. Admissibility of the application: The question is about “determination of the liability to pay tax on any goods or services or both” and hence is admissible under Section 97(2)(e) of the CGST Act 2017.
BRIEF FACTS OF THE CASE:
5. The applicant furnishes some facts relevant to the issue:
5.1 The applicant states that they are engaged in the business of civil works contract (construction of residential apartments). Further they have entered into a contract agreement with Provident Housing Limited and Puravankara Limited (‘Developer’) for construction of residential apartment project.
5.2 The applicant is the main contractor to M/s. Provident Housing Limited and M/s. Puravankara Limited (developer), who is developing the project which is having low-cost houses up to a carpet area of 60 square metres per unit and qualifies as affordable housing project which has been given infrastructure status vide Notification of Government of India, in Ministry of Finance, Department of Economic Affairs vide F.No. 13/6/2009-INF, dated the 30th March, 2017.
5.3 The applicant has undertaken three projects, one from M/s Puravankara Limited in the name of “Provident Parksquare” and two projects from M/s Provident Housing limited in the name of “Provident Neora” & “Provident Capella” & details are as under.
