Case Law Details
In re Bengal Peerless Housing Development Company Limited (GST AAR West Bengal)
GST should not be collected by builders at higher rate on services relating to the preferential location of the unit and right to use car parking space and common areas and facilities.
Whether the services offered to the buyer of a flat in a housing complex is composite supply?
The Applicant is providing service of construction of a dwelling unit in a residential complex, bundled with services relating to the preferential location of the unit and right to use car parking space and common areas and facilities. It is a composite supply, construction service being the principal supply. Entire value of the composite supply is, therefore, to be treated, for the purpose of taxation, as supply of construction service, taxable under Sl No. 3(i) read with Paragraph 2 of Notification No 11/2017 – CT (Rate) dated 28/06/2017 (corresponding State Notification No. 1135-FT dated 28/06/2017), as amended from time to time.
Read AAAR Ruling- Services offered to buyer of a flat in a housing complex is composite supply?
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