Right to use of parking space with sale of apartments is not a composite supply

In re Eden Real Estates Private Limited (GST AAR West Bengal)

The AAR, West Bengal in the matter of M/s. Eden Real Estates Private Limited [Order No. 19/WBAAR/2022-23 dated December 22, 2022] has ruled that providing the right to use of car parking space along with the sale of apartments doesn’t constitute composite supply. The supply of services for the right to use of parking space would be taxable at 18% Goods and Services Tax (GST).

Read AAAR Order: 18% GST Payable on Open car parking sale

Facts:

M/s. Eden Real Estates Private Limited (“the Applicant”) is in the business of construction of residential apartments intended for sale. An option to opt for parking space along with the apartments is given to the prospective buyers and they are charged extra for the same.

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