Case Law Details
In re M/s Teamview Developers LLP (GST AAR Karnataka)
1. The tax rate applicable on the supply of construction service to the land owner in lieu of transfer of development rights to the promoters portion is liable to tax at 9% under CGST and 9% KGST under entry no. 3(xii) of the Notification No.11/2017 — Central Tax (Rate) dated 28.06.2017 as amended by Notification No. 3/2017-Central Tax (Rate) dated 29.03.2019. The applicant is eligible for input tax credit on the same.
2. Since the applicant is capitalizing his portion of the building as an immovable property, the applicant is not eligible to claim input tax credit on the inputs and input services to the extent used for such construction as per section 17(5)(d) of the CGST Act, 2017.
3. Since the input tax credit is not available relating to his portion of the constructed building (as answered in 2 above), the same is not available for utilization of it against the output tax payable on letting out of the same space.
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, KARNATAKA
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