Case Law Details
In re Durga Projects and Infra Structure Private Limited (GST AAR Karnataka)
Whether Applicant is liable for GST towards work executed under JDA on land owner’s portion where work commenced during pre-GST and continued under GST Law. If tax is applicable the valuation for payment of tax?
In the instant case it is apparent from the advance ruling application filed by the applicant and also an admitted fact that the construction commenced during pre-GST regime and continued thereafter also. Further the applicant has not furnished any information as to whether the applicant has transferred the possession of the land owner’s share of flats or not. Hence it is inferred that the possession of the land owner’s share of flats has not been given to the land owner. Therefore the said possession obviously would happen during the GST regime and hence would attract applicable GST. In terms of Notification No.4/2018-Central Tax (Rate) dated 25.01.2018 the time of supply would fall under the purview of GST law. Therefore the tax liability arises not partly under the earlier law and partly under the GST law, but entirely under the GST law.
The Applicant is liable to pay GST towards work executed under Joint Development Agreement on Land owner’s portion, on the value to be arrived at in terms of pars 2 of the Notification No.11/ 2017-Central Tax (Rate) dated 28.06.2017 at the time of transfer of possession of the land owners’ portion of the flats.
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING
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