Gujarat AAR in the case of M/s V 2 Realty

Case Covered:

M/s V 2 Realty

Facts of the Case:

The applicant submitted that they are engaged in the construction business. Their project V2 Signature is going on at Chala, Vapi. The ground and First Floor in all wings of their project are commercial shops. The remaining floors are residential flats. Further, submitted that they have received BUP (Completion Certificate) for commercial shops i.e. Ground and First floors on 26.09.2017.

Therefore, they are not liable to pay GST from 26.09.2017 on new commercial bookings. There is also the first occupancy in the building from 26.12.2017.

Accordingly, the applicant sought Advance Ruling on the following questions:

I. Whether selling of residential flats after the date of completion certificate of commercial shops or after the first occupancy in building is exempt supply?

II. Manner of reversal of ITC on expenses incurred up to date of completion certificate shops.

III. Manner of claiming ITC on expenses incurred after the date of completion certificate of commercial shops.

Observations:

We have considered the submissions made by the Applicant in their application for advance ruling. We also considered the issue involved, on which advance ruling is sought by the applicant, relevant facts & the applicant’s interpretation of the law. At the outset, we would like to state that the provisions of both the CGST Act and the GGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the GGST Act.

Ruling:

Question 1. Whether selling of residential flats after the date of completion certificate of commercial shops or after the first occupancy in building is exempt supply?

Ans. Negative.

Question 2. Manner of reversal of ITC on expenses incurred up to date of completion certificate shops.

Answer: The manner of reversal of ITC on expenses incurred up to date of completion certificate shops has been provided under Sections 16 and 17 of CGST Act, 2017 read with Rules 42 and 43 of CGST Rules, 2017 read with Notification No. 16/2019-CT dated 29.03.2019.

Question 3. Manner of claiming ITC on expenses incurred after the date of completion certificate of commercial shops.

Answer: The manner of claiming Input Tax Credit has been provided under Sections 16 and 17 of CGST Act, 2017 read with Rules 42 and 43 of CGST Rules, 2017 read with Notification No. 16/2019-CT dated 29.03.2019.

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