Case Law Details
In re Nani Resorts and Floriculture Pvt. Ltd. (GST AAR Haryana)
Whether the applicant taxpayer is to pay tax @ 6% + 6% (after availing land abatement= 4%+4%) availing the input tax & as provided under notification 11 & t7 of 2017 under CGST Act & notification 46 & 74 of 2017 under HGST Act. Or the applicant taxpayer is to pay tax @ 0.5%+0.5% as provided under notification 3 & 4 of 2019 under CGST Act & notification 45 & 46 of 2019 under HGST Act?
In view of the above facts, it is clear that a separate license bearing No.82 of 2018 dated 06.12.2018 and RERA License No.GGM/339/339/71/2019/33 dated 27.05.2019 for construction of residential apartments over the land measuring 4.36875 Acres had been obtained by the Applicant on which construction commenced only after 01.04.2019. So, this project being developed by the company does not fall under the definition of “ongoing project”. Rather this project falls under the category of a project “other than an ongoing project as provided in the notification no. 03/2019 —Central Tax (Rate)” and the rate of tax applicable on flats over the land measuring 4.36875 Acre is applicable @ 0.5% + 0.5%(Without Input Tax).
While obtaining license from the RERA, the applicant itself declared the likely date of starting the construction work on an land measuring 4.36875 Acre as 05.07.2019. Moreover, the bookings of flats over an land measuring 4.36875 acres were made after 01.04.2019. So, it is clear that the construction over the land measuring 4.36875 was started after 1.04.2019. Since the construction of affordable residential apartments over the land measuring 4.36875 Acre with respect to separate License No.82 of 2018 dated 06.12.2018and RERA LicenseNo.GGM/339/339/71/2019/33 dated 27.05.2019 commenced after 01.04.2019, so, this is not an ongoing project.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
