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The construction services provided by the applicant under the project “Prajapati Magnum” qualifies for the reduced CGST rate of 12%

Shanti Prime Publication Pvt. Ltd.

Rate of GST on construction service—Affordable housing project—In the instant application, question before authority is that Whether the construction services provided under the project “Prajapati Magnum” qualifies for the reduced CGST Rate of 6% as provided in Sl. No 3 -item  (v) sub item (da) vide Notification 01/2018- CT (Rate) dated 25.01.2018?

Held that— The applicant’s case is covered under the tax rate of 12%, under Heading 9954 (Construction Services), (v) (da) of above mentioned Notification No, 11/2017, as amended since the project undertaken by them falls under the definition of “Affordable Housing” as stated by them in the application - The benefit of reduced rate would be available to them only in the cases of supply effected after 25.01.2018 i.e. the date on which Notification 1/2018-CentraI Tax (Rate) was issued and the benefit of this reduced rate would be applicable in case of only those flats which are of carpet area upto 60 sq mtrs. In this scheme which is covered in the category of affordable housing - In case of other flats which have carpet area more than 60sq.mtrs. The applicant would be required to pay GST at normal applicable rate.

Ruling— The applicant’s case is covered under the tax rate of 12%, under Heading 9954 (Construction Services). And in case of other flats which have carpet area more than 60 sq.mtrs. The applicant would be required to pay GST at normal applicable rate. [2018] 2 TAXLOK.COM 302 (AAR-Maharashtra)