Authority for Advance Ruling (AAR)

The Applicant is the holder of GST Registration No. 08AATFB8617M1ZO and the applicant entered into an Agreement to provide the pure labor Construction Services to M/s BCM BUILDERS LLP.M/S BCM Builders LLP has entered into a contract with Rajasthan Government to construct 380 flats under "Affordable Housing Scheme under Pradhan Mantri Awas Yojna" (including Material and Labor). The application has been filed by the applicant seeking whether the entry number 10 of the Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 is applicable on the services of "Pure Labor" provided by the applicant.

The Applicant is the holder of GST Registration No. 08ABXFA7290E1ZX and is inter-alia engaged in the business of spice manufacturing and trading, contributing significantly to the supply chain in the FMCG sector. The firm’s monthly taxable turnover exceeds Rs. 50 lakhs, thereby prima facie making Rule 86B applicable.The application has been filed by the applicant seeking whether the total income tax paid by the firm and its partners be considered for the exemption under Rule 86B. Also, If no single partner has paid more than ₹1 lakh in tax, but the firm and partners together have, does the exemption still apply.

Question -A Is GST payable ON AREA GIVEN FREE OF COST (which will include following) to existing members in pursuance to development agreement, where development agreement is entered into on 02.09.2016 and amended subsequently by supplementary agreement on 01/12/2021 and 20/04/2024, respectively. - Area in lieu of existing area given - Additional area given - Amenities given - Parking area - Stamp duty & Registration borne by builder/developer Question - B Is GST payable on monetary consideration payable to existing members in terms of development agreement for residential apartment projects, in following form, where development agreement is entered into on 02.09.2016 and amended subsequently by supplementary agreement on 01/12/2021 and 20/04/2024, respectively. - Rent for alternate accommodation - Brokerage for alternate accommodation - Shifting charges - Corpus to existing members - Corpus to society Question - C What will be taxable value for levy of GST on area given free of cost to existing members (which will include following) in pursuance to development agreement, where development agreement is entered into on 02.09.2016 and amended subsequently by supplementary agreement on 01/12/2021 and 20/04/2024, respectively. - Area in lieu of existing area given - Additional area given - Amenities given - Parking area - Stamp duty & Registration borne by builder/developer

Query 1: Whether the activity of leasing of weekly market to the tender contractors for the purpose collection of fee on the week market days basis from the merchants/ farmers/ public for usage of the open space for selling of fruits / vegetables / domestic animals / birds etc. is an activity covered under the function entrusted to Panchayat under the ELEVENTH SCHEDULE under Article 243G as a local authority in which we are engaged as public authority.

 Query 2: If so the above activity shall not be treated as a supply of service and in that case the same is covered as an activity which is not a service as per Central Tax Notification No. 14/2017 – Rate, dated 28.06.2017 as amended as well as under State Tax Tamil Nadu G.O. (Ms.) No. 75, dated 29.06.2017 – GST as amended and as a result Central Tax and State Tax are not chargeable for the said activity.

Q.1 : Whether the Applicant has the option to pay tax at the rate of 12 per cent (6 per cent CGST + 6 per cent MGST) with Input tax credit for supply of residential apartments in all its ten Aspirational towers in terms of item (ie) of Sl. No. of the Notification No. 11/2017 - Central Tax (Rate) dated 28.06.2017 as amended from time to time?

Q.1: Whether the Applicant is entitled to take credit of Integrated Goods and Services Tax (“IGST”) paid by the Applicant under section 3(7) of the Customs Tariff Act, 1975 r/w section 5(1) of the Integrated Goods and Services Tax Act, 2017 (“the IGST Act”) while importing the sample drugs, in terms of section 16(1) of the CGST Act? 

Q.2: Whether the Applicant is entitled to take credit of IGST paid by the “logistics service provider” [under DDP (Delivered Duty Paid) model of shipment] under section 3(7) of the Customs Tariff Act, 1975 r/w section 5(1) of the IGST Act while importing the sample drugs, in terms of section 16(1) of the CGST Act, where the Applicant is the Importer on Record? 

Q.3: Whether the Applicant is entitled to take credit of Central Goods and Services Tax (“CGST”) paid by the Applicant under section 7 r/w section 9 of the CGST Act for the services of Customs House Agent received by the Applicant, in terms of section 16(1) of the CGST Act?

Withdrawn

1. What will be the classification of the goods viz ‘sada tambaku pre-mixed with lime’ proposed to be manufactured & supplied by them? 

2. What will be the rate of GST & compensation cess of the goods viz ‘sada tambaku pre-mixed with lime; proposed to be manufactured and supplied by them?

Whether on the basis of notification No. 5/2017-CT (R) dated 28.6.2017 read with notification No. 9/2022-CT (R) dated 13.7.2022, refund is restricted on outward supply of products in which notified product is used as inward supply

Whether proportionate Input Tax Credit is admissible for supply of the following goods and services: a) Steel, Cement and other consumables etc., to the extent of their actual usage in the execution of works contract service when supplied for construction of immovable property, in the form of the factory which is an Integrated Factory Building with Gantry Beam, which in turn is used for mounting across the pre-cast concrete beams, poles over which the crane would be operated;

 b) Installation and Erection Services of the PEB when supplied for construction of immovable property, in the form of the factory which is an Integrated Factory Building with Gantry Beam, which in turn is used for mounting across the pre-cast concrete beams, poles and over which the crane would be operated; c) Other capital goods like rails, electrification, etc. installed or erected for smooth operation of the crane.