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GST will be applicable if consideration is received before issuance of completion certificate.

Applicability of GST — Requesting advance ruling in respect of the following questions :-

(i) Whether the sale / booking of units in a project after its first occupation and receipt of advance against that bo1king is classifiable under Para 5 of Schedule III to the CGST Act, 2017 as sale of building and thus neither regarded as Supply of goods nor supply of services? Thus whether the same is outside the purview of Goods and Services Tax?

(ii) The date of issuance of completion certificate by the competent jurisdictional authority in the instant case shall be considered as the date of completion of the property and if the entire amount of consideration has been received after such date of completion, then that would not be treated as a taxable service. If any part of the consideration is received before such date, then the transaction would be treated as a supply of service as per clause 5 of Schedule II to the GST Act, attracting the levy of GST. The first occupation as claimed by the applicant in the instant case, without having the mandatory completion certificate by the jurisdictional authorities is found to be devoid of any merit.

(iii) The completion certificate for the said project of the applicant to be issued by the competent jurisdictional authority is pending owing to non-compliance of the legal provisions and for want of procedures by the applicant, as mandated under Section 301 of the Municipal Corporation Act, 1956 and Rule 98 of the Land Development Rules, 1984, as discussed above. Accordingly it is found that the date of issuance of completion certificate by the competent jurisdictional authority in the instant case shall be considered as the date of completion Of the property and if the entire amount of consideration has been received after such date of completion, then that would not be treated as a taxable service. If any part of the consideration is received before such date, then the transaction would be treated as a supply of service as per clause 5 of Schedule II to the GST Act, attracting the levy of GST. The first occupation as claimed by the applicant in the instant case, without having the mandatory completion certificate by the jurisdictional authorities is found to be devoid of any merit. — Aman Agrawal, In Re.. [2019] 15 TAXLOK.COM 132 (AAR-Chhattisgarh)