Valuation of supply—Section 15 of CGST Act— The present appeal has been filed against the Advance Ruling order. 

The Appellant M/s. Ashiana housing ltd. is registered under GST in Gurugram and is a State administered taxpayer. They are engaged in the construction of residential complexes and have entered into a 'development agreement' with a Landowner M/s. Universe Heights (India) Private Limited Gurugram for construction of a Group Housing colony.

The Advance Ruling Authority has held the EDC and IDC charges as inclusive in the Value on the ground that provisions of the Sub Section 15(2) are very clear that all other taxes than applicable under the GST Law form part of the Taxable Value under GST.

The Appellant has cited the following as the 2grounds for preferring of present appeal:-

A. The impugned order has been passed in gross contravention of statutory provisions and principles of natural justice.

B. The amount of EDC and IDC shall not be included in value of supply made by the appellant.

As per appellant, the EDC and IDC are not levied on the transaction of supply of services. These charges are mandatorily recovered from a developer holding license under HDRUA Act as a condition of the license. Thus, these charges are not covered with the purview of Section 15(2)(a of the CGST Act.

Held that— Since, the 'External Development' and 'Infrastructure Development' do contribute to the value of the flats, the charges for these beyond doubt form a constituent of the value of the construction service provided to the flat owners by the Appellant. The GST shall be applicable, as also provided under Section 15(2) of CGST Act.