Advance Ruling- Levy of GST- The Appellant had sought advance ruling in respect of any GST liability on sale of built-up area on behalf of MoHUA in the colonies redeveloped by it for MoHUA:-

a) Whether the Appellant is liable to pay GST on sale of commercial super built up area on behalf of MoHUA, Government of India, by considering the Appellant also as the supplier of service while selling such commercial built-up space as an agent on behalf of the Government of India in the colonies under redevelopment.

b) Whether the MoHUA, Government of India, is liable to pay GST on sale of commercial built-up space, and whether it relates to any function entrusted to a municipality under Article 243W of the Constitution.

c) Whether the Appellant is liable to pay GST on sale of built-up space for which part of the consideration was received prior to 01.07.2017, and partly on or after 01.07.2017

d) Whether the Appellant is liable to pay GST on consideration received under an agreement to sell constructed units in a building which is under construction.

On the application of the appellant, the AAR vide Order No. 07/DAAR/2018 05 TAXLOK.COM 056 dated 05.10.2018, held that:-

A. “The Appellant is covered in the definitions of “Agent” under Section 2(5), “Supplier” under Section 2(105) and “Taxable Person” under Section 2(107) of the CGST Act, 2017 in respect of the said project while providing services on behalf of the Ministry of Housing and Urban Affairs. Hence, they are liable to pay GST under Section 9(1) of the CGST Act, 2017,

B. The MoHUA, Government of India, is not exempted from payment of GST on sale of commercial built-up space, as it does not relates to any function entrusted to a municipality under Article 243W of the Constitution. Hence, the exemption under S. No 4 of Notification No. 12/2017- Central Tax (Rate) and parallel notifications under SGST and IGST are not admissible. After amendment of S. No 4 of the said Notification by Notification No 14/2018 – Central Tax (Rate) dated 26.07.2018, only services provided by “governmental authority” are exempted which does not cover the MoHUA. Further, MoHUA, Government of India is not a Municipality under Articles 243P and 243Q of the Constitution. Also, since, such services are being provided to business entities, exemption under S. No. 6 of the said Notification is also not admissible.

C. The Appellant is liable to pay GST on the services supplied under GST regime i.e. w.e.f 01.07.2017, even if part of the consideration had been received prior to 01.07.2017.

D. The Appellant is liable to pay GST on the sale of commercial built-up area which is under construction, as the same is a ‘supply of service’ under clause 5(b) of Schedule II of the CGST Act, 2017.”

Appeallate Authority for Advance Ruling, Delhi held that:- The Order dated 05.10.2018 05 TAXLOK.COM 056 of Delhi Authority for Advance Ruling is upheld. The appeal filed by M/s Nbcc (india) ltd., is dismissed being devoid of merit.