Court Buzz, GST

WB AAR classifies contract service for construction of affordable residential apartments taxable@6% GST.

Case: Primarc Projects Pvt. Ltd.

Forum: West Bengal AAR

Facts

The Applicant is the promoter of residential real estate project, supplying construction service in developing a residential housing project. The Applicant sought an advanced ruling on whether Entry No. 3(v)(da) of Notification 11/2017 Central Tax (Rate) dated 28/06/2017, as amended time to time, applies to the works contract service received from the contractors.

Key points

The AAR ruled that works contract service for the construction of those dwelling units in the Applicant’s  project that are affordable residential apartments in terms of clause 4(xvi) of Notification 11/2017 Central Tax (Rate) dated 28/06/2017, as amended time to time, are taxable at 6% under Entry No. 3(v)(da) of the said notification, provided the applicant does not opt for paying tax at the rate specified in Entry No. 3(ie) or 3(if).

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