In re VGK Property Developers Private Limited (GST AAR Tamilnadu)
Whether the units in the impugned Project with carpet area not exceeding 90 square meters and value not exceeding Rs. 45 lakhs, be considered an Affordable residential Apartment, based on its location within the revenue district and outside the jurisdiction of the revenue district of Chennai and hence considered as “ Non-Metropolitan Cities” in terms of Notification No.11/2017-Central tax (rate), dated 28.06.2017 r/w Notification No.-3/2019 CT(Rate)?
The Chennai Metropolitan Development (CMDA) administers the Chennai Metropolitan Region, spread over an area of 1,189 km2 (459 sq mi) and covers the districts of Chennai, Thiruvallur, Chengalpattu and Kancheepuram. The applicant has got his unapproved vacant housing plots approved by the Sembakkam Municipality by collecting necessary fees. Regularisation of Plot is of two stages. In the first stage, the layout is to be regularised by CMDA/LPA/Regional Deputy Directors, of Town and Country Planning Department concerned who will examine and issue an in-principle approved layout framework plan to the concerned local body. In the second stage, the local body concerned will issue regularization order and regularization plan for the plot as per the in-principle approved layout framework plan after confirming the ownership of the plot and collection of the balance regularization charge including other applicable charges.
For any development of any land or building, the planning authority shall levy charges (called the development charges) as per the rates prescribed in the Act. The Chennai Metropolitan Development Authority (CMDA) is authorised to regulate real estate development within the Chennai Metropolitan Area (CMA) via the issue of Planning Permissions (PP) issued under Section 49 of the 1971 Tamil Nadu Town and Country Planning Act. Also, from the documents submitted by the applicant, it is inferred that though the Sembakkam Municipality is the ‘appropriate local body’ for issuing approval order for the building plan, necessary fees towards ‘development charges ” were collected by the Chennai Metropolitan Development Authority (CMDA). Therefore, the planning authority for the impugned project is CMDA and by extension, the impugned project falls within the ambit of Metropolitan City of Chennai.
In view of the above, the units in the impugned Project is NOT considered as located in city or town “other than Metropolitan Cities” in terms of Notification 11/2017 Central Tax (rate), dated 28-6-2017, as amended by Notification 3/2019 CT (Rate).
It is ruled that the units in the impugned Project is within the Chennai Metropolitan area and hence the same cannot be considered as located in city or town other than Metropolitan Cities” in terms of Notification No. 11/2017 — Central Tax (Rate), dated 28.06.2017 r/w Notification 3/2019 CT (Rate).
FULL TEXT OF THE ORDER OF AUTHORITY FOR ADVANCE RULING, TAMILNADU
Tvl. VGK Property Developers Private Limited, No.5, Indira Garden, Kamaraj Salai, East Tambaram, Chengalpattu. 600 059 (hereinafter called the ‘applicant’ or `VGK’) is registered under the GST Vide GSTIN 33AAECV6446L1ZZ. The applicant have sought Advance Ruling on the following question:
Whether the units in the Impugned Project with carpet area not exceeding 90 square meters and value not exceeding Rs. 45 Lakhs, be considered an Affordable Residential Apartment, based on its location within the revenue district of Kanchipuram, which is distinct and outside the jurisdiction of the revenue district of Chennai and hence considered as “Non-Metropolitan Cities” in terms of Notification No. 11.2017 — Central Tax (Rate), dated 28.06.2017 r/w Notification 3/2019 CT(Rate).
The applicant has submitted the copy of application in Form GST ARA – 01 and also submitted a copy of Challan evidencing payment of application fees of Rs.5,000/- each under sub-rule (1) of Rule 104 of CGST rules 2017 and SGST Rules 2017.
2.1 The applicant has stated that they are in the development and promotion of residential apartments. They are taking up projects especially in the extended Greater Chennai Corporation Limits., namely, Rajakilpakkam, Tamabram etc. The applicant has sought Advance ruling with respect to the Residential Real Estate project, the details of which are as follows —
(i) Location of the Impugned Project: Plot no:10, New No;37, Berahcah Nagar, Rajakilpakkam, Pincode 600073
(ii) Office of the Municipality issuing planning permit and collects Property Tax: Sembakkam Municipality
(iii) Office of the sub-registrar: Sub-registrar of Selaiyur
(iv) Office of TNEB: Chennai South
(v) Jurisdictional Revenue Department:
