Construction of ‘Other than affordable residential apartments’, i.e., ‘Unit’ in the proposed RREP - Ashiana Shubam - Phase IV’, by the applicant, ‘promoter’ of the RREP, is classifiable under SAC 9954 as ‘Construction Service’ and the applicable rate of tax is CGST @ 3.75% and SGST @ 3.75% as per Entry Sl.No. 3 (ia) of the Notification 11/2017-Central Tax (Rate)
Authority for Advance Ruling -— Taxability on activities of construction – The applicant are a real estate developer. They have stated that the present application pertains to development of a residential project by them under a defined arrangement. The applicant sought an Advance Ruling as to whether the activities of construction carried out by the applicant for its customer under the Construction Agreement, being composite supply of works contract are appropriately classifiable under Heading 9997, and chargeable to CGST E.1 9% under S.No.35 of Notification No.11/2017-CT (Rate) dated 28.06.2017”. The authority observed that the applicant has stated that he is the developer of the proposed RREP and as per the above definition, the applicant is Promoter’ for the purposes of the said ‘Notification’.
Held that:- The Hon’ble Authority for Advance Ruling held that the Proposed Modus operandi for construction of ‘Unit’ which is ‘other than affordable residential apartments’ by the applicant in the RREP promoted by them, is classifiable under SAC 9954 as ‘Construction Service’ and the applicable rate of tax is GST @ 7% as per Entry Sl.No. 3 (ia) of the Notification 11/2017-Central Tax (Rate) dt. 28.06.2017 as amended.