In re Castle Realtors (GST AAR Rajasthan)
Rajasthan Authority for Advance Rulings (AAR) has issued its findings on the application by Castle Realtors regarding the Goods and Services Tax (GST) rates applicable to their construction services. The services in question include various aspects of real estate development, such as construction, repair, maintenance, and renovation of residential apartments under a Real Estate Project (REP). This case brings clarity to the GST structure applicable to affordable and non-affordable apartments and commercial spaces, as specified in Notification No. 11/2017-Central Tax (Rate) and subsequent amendments.
Background of the Application
Castle Realtors, registered under GSTIN 08AAQFC5503J1Z9, is engaged in providing construction and related services for both affordable and non-affordable residential apartments. With these services commencing post-April 1, 2019, Castle Realtors sought an advance ruling on the GST rates applicable under the revised tax structure effective from that date. The application referenced the amended provisions outlined in Notification No. 3/2019-Central Tax (Rate), which governs GST applicability on affordable and non-affordable residential properties.
Key Issues Presented
The primary issues raised in the application for the ruling included:
1. Determination of GST Rates for Construction Services: Castle Realtors sought clarification on the specific GST rates applicable to their affordable and non-affordable housing projects.
2. Eligibility of Input Tax Credit (ITC): The company also queried whether input tax credit is claimable for expenses related to construction activities for commercial apartments in the REP.
