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The advance amount received for sale of villa on or after the appointed day prior to issuance of occupancy certificate by the local panchayat is considered as construction services and GST is applicable on two third of the total amount charged for such supply.

Shanti Prime Publication Pvt. Ltd.

Liability of tax—In the instant case, applicant seeking advance ruling on Determination of liability to pay tax on sale of villas after completion and obtaining necessary approvals from the competent authority.

Held that— The applicant has failed to produce supporting documents to prove that he has borrowed money from Mr. Zubin Dubash and the amount received by the applicant is accounted in the books of accounts of the applicant as loan and advances. In absence of the supporting documents the amount received by the applicant has been considered as advances received towards sale of villa. The applicant has received advance towards sale of villa prior to issuance of completion certificate. Hence, the same is taxable under GST Act @ 12%.
Ruling— The advance amount received for sale of villa on or after the appointed  day prior to issuance of occupancy certificate by the local panchayat is considered as construction services and GST is applicable on two third of the total amount charged for such supply. [2018] 4 TAXLOK.COM 038 (AAR-Goa)