Case Law Details
Karma Buildcon Through Chetan Rameshbhai Jogi Vs Union of India (Gujarat High Court)
For Builders, Real Estate developers, Para 2 Notification No.11/2017 Central Tax (Rate) dated 28.6.2017 provides for deduction of 33% from the value of supply as deemed value of land. In some of the cases due to this artificial deduction of value of land, even land is getting taxed under GST which is in contravention of the provisions of Section 7(2) read with Schedule III. Therefore the validity and vires of entry 3(if) of notification is challenged before Gujarat HC by M/s Karma Buildcon.
FULL TEXT OF THE JUDGMENT/ORDER of GUJARAT HIGH COURT
By way of the present petition under Article 226 of the Constitution of India challenge is to the validity of the Entry No.3(if) read with para2 of the Notification No.11/2017 Central Tax (Rate) dated 28.6.2017 is amended by Notification No. 3/2019 Central Tax (Rate) dated 29.3.2019 issued under the Central Goods & Service Tax Act [hereinafter referred to as ‘CGST Act’] and identical notification issued under the Gujarat Goods & Service Tax Act, 2017 which according to the petitioner has created artificial restriction on the value of the land for undivided share of the land for the purpose of transfer of property for the undivided share. The same being ultra vires to Section 7(2) of the CGST Act read with Entry 5 of Schedule III and Sections 9(1) and 15 of the CGST Act with the following prayers :
“(a) To issue an appropriate writ, order or direction and declare the Entry 3(if) along with Para 2 of Notification No.11/2017 — State Tax (Rate) as well as Entry 3(if) of Notification No.11/2017 — State Tax (Rate) as being ultravires Section 7(2) of the CGST Act read with Entry No.5 of Schedule III to the CGST Act as well as ultravires Section 9(1) and Section 15 Of the CGST Act and illegal;
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