Case Law Details
In re Pariwar Housing Corporation (GST AAR Karnataka)
Discover the intricacies of the GST Authority for Advance Ruling (AAR) Karnataka ruling in the case of Pariwar Housing Corporation, focusing on the valuation date dilemma for discharging GST on the landowner’s share in a Joint Development Agreement (JDA). This article provides insights into the applicant’s query, the AAR’s response, and the considerations surrounding the valuation date.
Detailed Analysis:
- Background of Pariwar Housing Corporation: Pariwar Housing Corporation, a registered partnership firm engaged in real estate activities, sought an advance ruling on a crucial question related to the discharge of GST on the landowner’s portion in the context of a Joint Development Agreement.
- Evolution of Key Question: The applicant’s query revolved around the determination of the appropriate valuation date for discharging GST on the landowner’s share. Specifically, they inquired whether the value as on the JDA agreement date should be considered or if the value as on the date of transfer should prevail.
- Withdrawal of Application: Subsequently, Pariwar Housing Corporation communicated its decision to withdraw the application through a letter received on 17.01.2024. This led to the disposal of the application by the AAR.
Findings & Discussion:
- Consideration of Valuation Dates: The crux of the matter was the choice between the JDA agreement date and the date of transfer as the valuation date for determining the GST liability on the landowner’s portion. This decision holds significance in real estate transactions involving joint development.
- Applicant’s Decision to Withdraw: Pariwar Housing Corporation, for reasons undisclosed in the available information, opted to withdraw its application seeking an advance ruling. The withdrawal prompted the disposal of the application by the AAR.
Conclusion: In the absence of detailed findings or a ruling due to the applicant’s withdrawal, the specific considerations and implications regarding the valuation date for discharging GST on the landowner’s share remain undisclosed. This case highlights the complexities involved in GST applications related to real estate and emphasizes the need for clarity in regulatory aspects concerning joint development agreements.
FULL TEXT OF THE ORDER OF AUTHORITY FOR ADVANCE RULING, KARNATAKA
ORDER UNDER SECTION 98(2) OF THE CGST ACT, 2017 & UNDER SECTION 98(2) OF THE KGST ACT, 2017
M/s Pariwar Housing Corporation, No.167, 18th Main, 4th T Block, Jayanagar, Bengaluru-560041, (hereinafter referred to as ‘The applicant’) having GSTIN number 29AANFP7396M1Z2, have filed an application for Advance Ruling under Section 97 of CGST Act 2017 and KGST Act 2017 read with Rule 104 of CGST Rules 2017 8s 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 partnership firm, registered under the provisions of Central Goods and Services Tax Act, 2017, as well as Karnataka Goods and Services Tax Act, 2017 (herein after referred to as the CGST Act and KGST / SGST Act respectively. The applicant is engaged in the business of real estate activities like constructing residential apartments and commercial complexes.
3. The applicant has sought advance ruling in respect of the following question:
1. Whether the value as on JDA agreement date agreement should be considered or the value as on date of transfer to be considered for the purpose of discharging the GST on landowners portion?
4. The Applicant, vide their letter (received in this office on 17.01.2024) has informed this Authority that they wish to withdraw their application.
5. In view of the above we pass the following.
RULING
The Application filed by the Applicant for advance ailing is hereby disposed for the reason “withdrawn by the applicant”.
