Case Law Details
In re Savfab Buildtech Private Limited (GST AAR Uttar Pradesh)
In the case of Savfab Buildtech Private Limited, the Authority for Advance Ruling (AAR) of Uttar Pradesh examined the tax implications related to the sale of residential units in the Saviour Park project’s Phase IV. The applicant sought clarification on whether the sale of residential units after ‘deemed completion’ or ‘first occupation’ in Phase IV would be taxable or exempt from GST, and if taxable, from which date onwards.
The AAR began by clarifying that unless specifically mentioned, references to provisions of the CGST Act would also encompass provisions of the UPGST Act, as they are largely similar. The applicant’s questions were deemed admissible for consideration under Section 97(2) of the CGST Act.
The project in question, ‘Saviour Park,’ comprised 1150 units divided into four phases. While the first three phases were completed and delivered, Phase IV consisted of 282 units, with Part I already completed and Part II finished in April 2023. The applicant applied for completion certificates for Part II, but the Ghaziabad Development Authority (GDA) denied issuance due to pending dues.
The AAR emphasized that without the GDA’s completion certificate, ‘deemed completion’ could not apply. The project’s separate registration for Phase IV meant it was treated as an independent project, requiring its own completion certificate for property sales.
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