The consideration for providing the construction services by way of construction of residential unit and the consideration for the other services are considerations against separate independent services being provided by the applicant. The Other Charges would attract GST @18%. Thus, the 1/3rd deduction from total value as per Sr. No. 2 of the Notification (as claimed by the applicant) cannot be allowed as deduction from the Other Charges.
Authority for Advance Ruling – Construction Services – The applicant is engaged in the business of construction and sale of residential apartments and discharge Goods and Services Tax (GST) in respect of supply of construction services in respect of residential units for which consideration is received before receipt of Occupancy / completion Certificate. The applicant sought an Advance Ruling as to whether the Other Charges received by the company will be treated as consideration for construction services of the Company and classified under HSN 9954 along with the main residential construction services of the Company or whether the same will be treated as consideration for independent service(s) of the respective head; consequently, what will be the applicable effective rate of GST on services underlying the Other Charges.
Held that:- The Hon’ble Authority for Advance Ruling held that other Charges received will not be treated as consideration for construction services of the Company and is not classified under SAC 9954 along with the main residential construction services. The other charges will be treated as consideration received against supply of independent service(s) of the respective heads. The applicable rate of GST on services underlying the Other Charges would be as per the SAC prescribed under Notification No. 11/2017 CT ( R ) dated 28.6.2017 and are liable to GST @ 18%. Further, the applicant has to pay GST on the entire consideration received as ‘other charges’, without any abatement.
The consideration for providing the construction services by way of construction of residential unit and the consideration for the other services are considerations against separate independent services being provided by the applicant. The Other Charges would attract GST @18%. Thus, the 1/3rd deduction from total value as per Sr. No. 2 of the Notification (as claimed by the applicant) cannot be allowed as deduction from the Other Charges.
Authority for Advance Ruling – Construction Services – The applicant is engaged in the business of construction and sale of residential apartments and discharge Goods and Services Tax (GST) in respect of supply of construction services in respect of residential units for which consideration is received before receipt of Occupancy / completion Certificate. The applicant sought an Advance Ruling as to whether the Other Charges received by the company will be treated as consideration for construction services of the Company and classified under HSN 9954 along with the main residential construction services of the Company or whether the same will be treated as consideration for independent service(s) of the respective head; consequently, what will be the applicable effective rate of GST on services underlying the Other Charges.
Held that:- The Hon’ble Authority for Advance Ruling held that other Charges received will not be treated as consideration for construction services of the Company and is not classified under SAC 9954 along with the main residential construction services. The other charges will be treated as consideration received against supply of independent service(s) of the respective heads. The applicable rate of GST on services underlying the Other Charges would be as per the SAC prescribed under Notification No. 11/2017 CT ( R ) dated 28.6.2017 and are liable to GST @ 18%. Further, the applicant has to pay GST on the entire consideration received as ‘other charges’, without any abatement.