The following presentation enumerates the taxing structure for real estate transactions and gst rates along with a comparison of the previous tax structure with the present structure under GST. it also discusses service tax on work contracts, service tax on renting, credit linked subsidy scheme, valuation of taxable supply, input tax credit, exemptions for builders, housing society.

1. By: Puneet Agrawal
Partner, ALA LEGAL
Real Estate Transactions
10th August, 2018

2. Real Estate Transactions
• Businesses providing works contract service such as construction of
buildings on Contracts, e.g., malls, planned projects, etc. Here,
contracts are entered upon for providing constructed units, cost of
contract inclusive of material as well as Labour.
Construction
(Works
contract):
• Businesses where land is procured/ arranged and construction is got
done by contractors and sold on per unit basis to end users or realty
partners. Sale of units is done of under construction property as
well.
Housing/
Commercial
Units
• Businesses where land is procured/ arranged and construction is got
done by contractors and the constructed units/ space is leased out for
long term/ short term periods to say for housing/ retail space.
Leasing:

3. Brief Overview of Taxation under Previous Regime
PART - I

4. VAT on Works Contract
Levy
• Works Contract is Considered as Deemed Sale.
• Transfer of property in goods (whether as goods or in some other form)
involved in the execution of a works contract
Defn. of
Works
Contract
• Any agreement for carrying out for cash or for deferred payment or for
valuable consideration, the building construction, manufacture,
processing, fabrication, erection, installation, fitting out, improvement,
repair or commissioning of any moveable or immovable property [DVAT
Act].
Valuation &
Rate
•Rates: Fixed rates like Delhi. Different tax rates like WB. Product Rate like UP, Haryana.
•Valuation: Actual Basis – By Deductive Method. Alternatively, Standard Deduction for
Labour Portion. However, Courts have affirmed that Computation may be done by
additive method also.

5. Developers are Works Contractor
• The Court has ruled that a development agreement is a
contract of works contract.
• “So long as there is no termination the construction is for and
on behalf of the purchaser. Therefore, it remains a works
contract within the meaning of the term as defined…”
K. Raheja
Development
Corpn. (SC)
• They affirm the legal position laid down in Raheja
Development. The Court clarified that the activity of
construction would be works contract only when the
developer enters into an agreement with the purchaser.
Larsen and
Toubro
Limited (SC)
• High court stated that a construction activities would be a
works contract only after entering into an agreement for
sale with the buyer. The court further clarified that there
shall be no works contract and no VAT liability in case of
sales made after completion of construction.
CHD Developers
(P&H HC)

6. Service Tax on Works Contract
Levy
• Service Portion in execution of Works Contract
• Construction of a complex, building, civil structure or a part thereof, intended for
a sale to buyer, wholly or partly except where entire consideration is received
after issuance of completion certificate by the competent authority.
Defn. of
Works
Contract
•A contract wherein transfer of property in goods involved in the execution of such
contract is leviable to tax as sale of goods and such contract is for the purpose of
carrying out construction, erection, commissioning, installation, completion, fitting out,
repair, maintenance, renovation, alteration of any moveable or immovable property or
for carrying out any other similar activity or a part thereof in relation to such property.
Valuation
• Actual Service Potion
• Service + Material: 40% (Original Works) & 70% other than OW
• Service + Material + Land: 30% of Total Value

7. Amendment in Valuation Rules –
Rule 2A
• Prior to the said amendment:
– Rule 2A of the Service Tax (Determination of value) Rules, 2006, as it stood
prior to 01.07.2012, provided for valuation of works contract, to only
exclude the value of transfer of property in goods.
– Abatement was provided in respect of Builders transactions vide
notification 26/2012-ST.
• In this regard, the levy of service tax in case of composite works
contract was challenged and the Delhi High Court in the case of
Suresh Kumar Bansal, W.P. (C) 2235 of 2011 ruled as follows:
– The provisions of Rule 2A of the Service Tax (Determination of value)
Rules, 2006, as it stood prior to 01.07.2012, did not provide for exclusion
of the value of land and thus did not provide for complete machinery to
tax composite works contract, in order to tax only the service portion.
– Machinery provision for exclusion of all components other than service
components was required to be provided by way of Act / Rules. The
abatement notification providing for the same cannot substitute the lack
of machinery provision to ascertain the value of services.

8. ALAAnalysis
• This amendment:
– seeks to cure the defect pointed out in the judgment by Delhi High Court
in Suresh Kumar Bansal, W.P. (C) 2235 of 2011,
– by providing for the exclusion of land / Undivided share of interest in land
– so that the levy only remains on the service portion.
– also provides alternative presumptive rates of service tax under the
valuation rules, which were earlier provided under the abatement
notification.
• The said amendment has following major impacts:
– The Government would not have to refund the Service Tax paid by the
buyers, as was ordered in the judgment of Suresh Kumar Bansal;
– Demand can now be raised in cases of the assessees who did not
discharge their liability of levy of service tax on composite works contract.
– Builders can right royally claim deduction of value of land from their
turnover – Delhi builders (where land value if very high) are greatly
benefitted.

9. Service Tax on Renting
S. 66E(a) (Declared Services) - Renting of immovable property
Renting means allowing, permitting or granting access, entry, occupation, use or any
such facility, wholly or partly, in an immovable property, with or without the transfer of
possession or control of the said immovable property and included letting, leasing,
licensing or other similar arrangements in respect of immovable property.
Bombay High Court in Khatizabai Dharsi Somji Dossa held that, “ ….the term of the
lease may be 5 years, 50 years, 99 years or even 999 years. Nevertheless, the
transaction is only a lease and there is always a reversion which continues to vest in
the owner for the entire term of the lease….”

10. Levy of GST on Real Estate Transaction
[Developers]
PART - II

11. Construction or Sale of
Land & Building
Sale of Building
• Consideration before CC and
first occupation: Leviable to
GST
• Entire Consideration after CC
or first occupation: Not
Leviable to GST
Sale of Land
• Not Leviable to GST
Works Contract – GST Leviable
Lease of Land & Building
Building
Lease or letting of Building
including a commercial,
industrial or residential
complex for business or
commerce – Leviable to GST
Land
•Any Lease, Tenancy, Easement,
License to Occupy Land –
Leviable to GST
Renting of Immovable Property
Levy of GST
Sale of Building before CC, Works Contract, Lease
of Land & Building, Renting of Immovable
Property shall be treated as Service.

12. Relevant provisions
• Schedule II
5. The following shall be treated as “supply of service”
…..
(b) Construction of a complex, building, civil structure or a part thereof, including a
complex or building intended for sale to a buyer, wholly or partly, except where the
entire consideration has been received after issuance of completion certificate,
where required, by the competent authority or after its first occupation, whichever
is earlier.”
• Entry 5 of Schedule III of the CGST Act expressly excludes “sale of land”
from the ambit of GST.
5. Sale of land and, subject to clause (b) of paragraph 5 of Schedule II, sale of
building.
• GST is only on the supply of construction service (which includes both
materials & services).

13. GST Rates
• Sl. No. 3(i) of Notification 11/2017-Central Tax (Rate) : 9%
[effective C+S = 18%]
(i) Construction of a complex, building, civil structure or a part
thereof, including a complex or building intended for sale to a
buyer, wholly or partly, except where the entire consideration
has been received after issuance of completion certificate,
where required, by the competent authority or after its first
occupation, whichever is earlier. (Provisions of paragraph 2 of
this notification shall apply for valuation of this service)

14. GST Rates
• Para 2 of Notification [substituted vide Notification No.
1/2018- CT (R) dated 25.01.2018]
– In case of supply of service specified in column (3), in item (i); sub-item (b), sub-item (c), sub-item (d),
sub-item (da) and sub-item (db) of item (iv); sub-item (b), sub-item (c), sub-item (d) and sub-item (da)
of item (v); and sub-item (c) of item (vi),against serial number 3 of the Table above,
– involving transfer of property in land or undivided share of land,
– the value of such supply shall be equivalent to
– the total amount charged for such supply
– less
– the value of land or undivided share of land and
– the value of land or undivided share of land, as the case may be, in such supply shall be deemed to be
one third of the total amount charged for such supply.
Explanation : For the purposes of paragraph 2, "total amount" means the sum total of,-
(a) consideration charged for aforesaid service; and
(b) amount charged for transfer of land or undivided share of land, as the case may be
including by way of lease or sublease.

15. In effect
• In Delhi proportion of circle rate of land to total value
87%-97%
• All types of constructions painted with same brush:
provision is colour blind
• Arbitrary, and land is being taxed by sub-ordinate
legislation
• Suggestions:
– Enter into separate agreement for land, and separate
agreement for building
– Challenge the notification

16. Concessional Rate of GST on Flat
sale under Specified Scheme
• The GST council w.e.f 25th January 2018 has notified concessional rate of
12% for the Housing sector vide Notification No. 01/2018 [CT(R)] dt.
25.01.2018. The benefit of the concessional rate of tax is provided under
specified schemes. Effective Tax Rate (after deducting 1/3rd cost of land) =
8% for the below mentioned services.
16

17. Contd…
Nature of Work Type of Project Schemes Tax
Rate
Works Contract Services
supplied by way of
construction, erection,
commissioning,
installation, completion,
fitting out, repair,
maintenance, renovation,
or alteration of a civil
structure or any other
original works pertaining:-
In situ redevelopment of
existing slums using land as a
resource
Housing for All (Urban) Mission/ Pradhan
Mantri Awas Yojana (Urban)
12
Economically Weaker Section
(EWS) houses
Affordable Housing under the Housing
for All (Urban) Mission/ Pradhan Mantri
Awas Yojana (Urban)
12
Houses under Credit Linked
Subsidy Scheme for EWS/LIG/
MlG-1/ MlG-2 under Pradhan
Mantri Awas Yojana (Urban)
Please Refer Next Slide 12
Low-cost houses up to a carpet
area of 60 square metres per
house
Under Affordable housing project (i.e.
housing project using at least 50% of the
Floor Area Ratio (FAR)/Floor Space Index
(FSI) for dwelling units with carpet area@ of
not more than 60 square meters.) to which
the infrastructure status has been given vide
F. No. 13/6/2009-INF, dated the 30th
March,2017
12

18. Credit Linked Subsidy Scheme
1. Pradhan Mantri Awas Yojna mission (Housing for All scheme) seeks to address
the housing requirement of urban poor including slum dwellers through
following programme verticals:
– Slum rehabilitation of Slum Dwellers with participation of private developers
using land as a resource (In-situ redevelopment)
– Promotion of Affordable Housing for weaker section through credit linked
subsidy (Credit Linked Subsidy Scheme).
– Affordable Housing in Partnership with Public & Private sectors .
– Subsidy for beneficiary-led individual house construction /enhancement.
2. One of the component/vertical of the housing scheme is the Credit Linked Subsidy
Scheme (CLSS). Credit linked subsidy will be provided on home loans taken
by eligible persons for acquisition, construction of house under CLSS.

19. Contd…
3. The beneficiaries of CLSS scheme are as follows:
Income Group Income Carpet area of House
Economically Weaker
Section (EWS)
Upto INR 3 lakhs Upto 30 sq. metre
Lower Income Group (LIG) INR 3,00,001 to INR 6 lakhs upto 60 sq metre
Middle Income Group
(MIG-I)
INR 6,00,001 to INR 12
lakhs
upto 120 sq metre
Middle Income Group
(MIG-II)
INR 12,00,001 to INR 18
lakhs
upto 150 sq metre
4. The above mentioned beneficiaries are eligible for interest subsidy on loan taken by
them subject to some conditions as mentioned in the scheme guidelines.

20. Contd…
Concessional Rate of GST
6. Flat buyer who has constructed or aquired the house under CLSS shall now
eligible for concessional GST rate of 12% (effective rate 8%) vide Entry
3(iv)(db) of N.No. 11/2017-CT(R) dt. 28.06.2017 w.e.f. 25.01.2018.
3. (iv) Composite supply of works contract as defined in clause (119) of
section 2 of the Central Goods and Services Tax Act, 2017, supplied by way
of construction, erection, commissioning, installation, completion, fitting
out, repair, maintenance, renovation, or alteration of,-
...
(db) a civil structure or any other original works pertaining to the "houses
constructed or acquired under the Credit Linked Subsidy Scheme for
Economically Weaker Section (EWS)/ Lower Income Group (LIG)/ Middle
Income Group-1 (MlG-1)/ Middle Income Group-2 (MlG-2)" under the
Housing for All (Urban) Mission/ Pradhan Mantri Awas Yojana (Urban);

21. Contd…
Conclusion:
• Two situations may arise:
Situation I: Buyer has acquired the Flat by taking loan under CLSS scheme
1. Charge GST @ 12% (effective rate 8%)
2. We should collect proof/Bank Loan certificate from buyer to confirm that
the buyer is availing the benefit under CLSS scheme and preserve those
documents for future reference.
Situation II: Buyer has not acquired the Flat by taking loan under CLSS
scheme
1. Charge GST @ 18% (effective rate 12%)

22. Contd…
• “We could not have hoped for anything better. The realty sector
is thankful to the government for understanding the need to
enable efficient supply of housing stock in the country,”
said Getamber Anand, president of the CREDAI National
lobby group. “Affordable housing has been declared
‘infrastructure’ with all its associated benefits. Additional
refinance of Rs 20,000 crore from the National Housing Bank
and lower interest rates resulting from increased liquidity in the
banking sector would add to the funds for the sector at lower
costs and also to the ultimate consumer….”

23. Value of Taxable Supply
Situation Value of supply
S. 15(1) • Value of Supply of Goods or Service or Both shall be
• Transaction Value
• which is the price actually paid or payable
• Where supplier and recipient of the supply are not related
and
• the price is the sole consideration for the supply

24. Inclusion in Value [S. 15(2)]
Value of Supply shall include:
a. Any taxes, duties, cesses, fees, charges levied under any law other than this
act, SGST, UTGST, and GST(Compensation to States) Act, if charged separately
by supplier.
b. Amt. that supplier is liable to pay in relation to such supply, but incurred by
recipient and not included in price actually paid or payable for goods or
services or both.
c. Incidental expenses, commission and packing, charged by supplier to
recipient and Amt. charged for anything done by supplier in respect of such
supply of goods or services or both at the time of/before delivery of goods or
supply of services.
d. Interest/late fee/ penalty for delayed payment of any consideration for any
supply.
e. subsidies directly linked to price excluding subsidies provided by CG and SG.
Explanation: The amount of subsidy shall be included in the value of supply of the
supplier who receives the subsidy.

25. Interest etc. for delayed payment
• Separately chargeable to GST
• At the time when actually money received
ILLUSTRATIONS:
 EDC/IDC charges
 Stamp Duty- Advisable to get it directly paid by
customer
 FOC

26. Contd…
Mr. P (Contractor) enters into an agreement with M/s CM (contractee) for
manufacturing product for P using Raw Material to be supplied by the P. Total agreed
consideration is Rs. 2 Lakhs.
Situation 1:
As per the agreement, steel and cement are to be supplied by Mr. P having Cost of Rs.
30,000/-.
–Value of Supply = Rs. 2 Lakhs.
Situation 2:
As per the agreement Mr. P shall only supply Raw Material. Due to some reasons M/s
CM has asked Mr. P to purchase stel and cement for CM and it is agreed that CM shall
adjust such amount from the agreed consideration.
–Value of Supply in the hands of Contractor for the Service = Rs. 2 Lakhs [Rs. 1.7 Lakhs billed amount +
Rs. 30,000/- addition as per S. 15(2)(b).]

27. Other Issues
• Assessment of benefit accrued to the Company on account of GST for passing
to existing buyers
– Computation on Project to Project basis
– In case of near constructed (say 90%) projects – GST rate very high, benefit
of ITC very less
– Do calculation and get the same audited by the Auditors and cross verified
by cost auditors
– Very useful for future reference – anti-profiteering etc.
• Prices of flats post-GST- Clause in the Agreement THAT all benefits already
passed and price fixed accordingly.
• Cancellation of Flat Buyer Agreement entered prior to 30th June, 2017 -
Implication of Section 142(5) - Refund Route. Buyer should file refund.

28. Valuation
Situation Value of supply
Consideration not in
money [R. 27 r/w R. 30]
- Open market value of supply, or
- open market value of consideration not in money
- 110% of cost of provision
"open market value“
Explanation to R. 35
(a) "open market value" of a supply of goods or services or
both means the full value in money, excluding the integrated
tax, central tax, State tax, Union territory tax and the cess
payable by a person in a transaction, where the supplier and
the recipient of the supply are not related and the price is the
sole consideration, to obtain such supply at the same time
when the supply being valued is made;

29. Collaboration Agreements
• Owner allows builder to retain & sell 1 floor, for construction of his 3 units
• Supply :
– all forms of supply
– for consideration
– by a person in the course or furtherance of business
• Builder’s supplies:
– Construction to Owner: consideration – sale rights of 1/4th Building
• Value: open market value of construction
– Construction and sale to buyer (1 unit)
• Already discussed in detail supra
• Owner’s supply:
– Construction & Sale Rights in land (Dev Rights) are not “SALE OF LAND”
– If land is for his personal use, then no supply – cannot be considered as in the
course or furtherance of business
– If land is for business – then supply
• Tax payable by land owner himself (as of now no reverse charge)
• Value: – open market value of Land. If difficult to find, open market value of construction

30. Contd…
• Since Developmental Rights entitle him to get rights
relating to land and Land exempted- ITC Reversal
• Plan on AOP/JV sort of arrangement, or land owner
sell land, and Builder sell building.
 Abhinav Mittal–CWP 6550 OF 2018 (Punjab &
Haryana High Court)
 Sanjeev Sharma (Delhi High Court)

31. Point in Time for Tax Payment by Land Owner
& Developer under Collaboration Agreement
• Vide Notification No. 4/2018- CT(R) dated 25.01.2018
• Liability to pay tax in case of following classes of registered persons:
a. who supply development rights to a developer, builder, construction
company or any other registered person against consideration and
b. who supply construction service of complex, building or civil structure to
supplier of development rights against consideration, in the form of
transfer of development rights
• Liability to pay tax arises when the developer, builder, construction
company or any other registered person, transfers possession or the
right in the building or civil structure, to the person supplying the
development rights by entering into a conveyance deed (e.g. allotment
letter).
• Not applicable to Revenue share situation
31

32. Contd…
• Not applicable to Revenue share situations.
• Terms of the Agreement would determine:
- Invoice
- Consideration
- Date of provision of Service
• Problem for SPVs-How would they take ITC @ end of
project

33. Input Tax Credit
• Works contract
services when
supplied for
construction of an
immovable property
(other than Plant &
Machinery)
No ITC
• Except where it is an
input service for
further supply of
works contract
service contract
Exception • Builders/
Developers and
Contractors
executing works
contract will get
credit.
Implication

34. Lease of Land & Building
•Land: Any Lease, Tenancy, Easement, License to Occupy Land is a supply of service
•Building: Any Lease or letting of Building including a commercial, industrial or
residential complex for business or commerce, either wholly or partly is supply of
service.
Levy
•Services by way of renting of residential dwelling for use as residence.Exemption
•Long Term Lease – Say for 99 Years ???
•Construction on Lease Hold Land intended for Sale???
Issues to
be
examined

35. Development on “Leasehold Land”
• One Issue resolved regarding sale of Flats on leasehold
Land by allowing one-third deduction from the total
amount charged towards sale of flat and following
exemption entry:
“Supply of land or undivided share of land by way of lease or sub
lease where such supply is a part of composite supply of
construction of flats, etc…..” (Refer Relevant Entry 16 (ii) in next
slide)
• Lease of Land by Government to Developers?? (Refer
Relevant Entry 16 (i) & (ii) in next slide)
• Eligibility of ITC on Construction of Flats on Leasehold
Land ??

36. Contd..
36
Sl. No. Services Rate
16
(Heading
9972)
(i) Services by the Central Government, State Government, Union territory or local
authority to governmental authority or government entity, by way of lease of land.
Nil
(ii) Supply of land or undivided share of land by way of lease or sub lease where such
supply is a part of composite supply of construction of flats.
This entry shall apply only to an amount charged for such lease and sub-lease not in
excess of one third of the total amount charged for the said composite supply. Total
amount shall have the same meaning for the purpose of this proviso as given in
paragraph 2 of this notification.
Nil
(iii) Real estate services other than (i) and (ii) above. 18
• Vide Notification No. 01/2018 [CT(R)] dt. 25.01.2018
Note: For the purposes of this paragraph, "total amount" means the sum total of,-
(a) consideration charged for aforesaid service; and
(b)amount charged for transfer of land or undivided share of land, as the case
may be including by way of lease or sublease.

37. Exemptions for Builders/Developers
Sl.No. Services
7. Services by way of renting of residential dwelling for use as residence
34. Services by government, local authority or governmental authority by way of
any activity in relation to any function entrusted to a municipality under Article
243W of the Constitution.
66. Services provided by way of pure labour contracts of construction, erection,
commissioning, installation, completion, fitting out, repair, maintenance,
renovation, or alteration of a civil structure or any other original works
pertaining to the Beneficiary-led individual house construction/ enhancement
under Housing for All (Urban) Mission / Pradhan Mantri Awas Yojna (PMAY)
67. Services by way of pure labour contracts of construction, erection,
commissioning, or installation of original works pertaining to a single residential
unit otherwise than as a part of a residential complex.

38. Contd..
• Insertion of Sl. No. 5A in Notification No. 13/2017-
CT (R) dated 28th June, 2017 vide Notification No.
3/2018-CT(R) dated 25th January, 2018.
(1) Sl. No. (2) Category of Supply of
Services
(3) Supplier of
service
(4) Recipient of
service
5A Services supplied by the
Central Government, State
Government, Union
territory or local authority
by way of renting of
immovable property to a
person registered under the
Central Goods and Services
Tax Act, 2017 (12 of 2017).
Central
Government, State
Government, Union
territory or local
authority
Any person
registered under the
Central Goods and
Services Tax Act,
2017."

39. Contd.
• The following clause has been inserted in the
Explanation, after clause (f) in Notification No. 13/2017-
CT(R) dt. 28th June, 2017 vide Notification No. 15/2018-
CT(R), 26th July, 2018.
(g) “renting of immovable property” means allowing,
permitting or granting access, entry, occupation, use or
any such facility, wholly or partly, in an immovable
property, with or without the transfer of possession or
control of the said immovable property and includes
letting, leasing, licensing or other similar arrangements
in respect of immovable property.’.

40. Exemption for Housing Society/
Residential Complex Associations
• Exemption of Rs. 5,000/- increased to Rs. 7,500/- .
Sl. No. Service
77 (Heading 9995) Service by an unincorporated body or a non- profit entity
registered under any law for the time being in force, to its own
members by way of reimbursement of charges or share of
contribution –……
(c) up to an amount of seven thousand five hundred rupees per
month per member for sourcing of goods or services from a
third person for the common use of its members in a housing
society or a residential complex.
[Vide Notification No. 02/2018 [CT(R)] dt. 25.01.2018]

41. Original Works
Original Works has not been defined under CGST. However, it has been defined in
the erstwhile Service Tax (Determination of Value) Rules, 2006 .
“Original works means-
i) all new constructions
ii) ii) all types of additions and alterations to abandoned or damaged structures
on land that are required to make them workable;
iii) iii) erection, commissioning or installation of plant, machinery or equipment or
structures, whether pre fabricated or otherwise. “

42. Contd…
NO ITC
• Goods or services received by a taxable person for construction of an
immovable property (except Plant & Machinery) on his own account
including when such goods or services are used in the course of business.
Implication
• Construction Done for Leasing purpose – No Credit
• Proportionate Reversal of Credit already availed for Units sold after
CC – Whether Required???
• Construction of Building intended for Sale but inventory given on
Lease???

43. PLC & specific charges : Composite
and Mixed supply
• PLC is nothing but price differential
• SCNs being issued
• Better to value each unit separately
• Composite supply: Means a supply made by a taxable person to a recipient
consisting of two or more taxable supplies of goods or services or both, or any
combination thereof, which are naturally bundled and supplied in conjunction with
each other in the ordinary course of business, one of which is a principal supply;
• Mixed supply: Means two or more individual supplies of goods or services, or any
combination thereof, made in conjunction with each other by a taxable person for
a single price where such supply does not constitute a composite supply;

44. Electricity supply to owners/occupants
• Typical clause of Agreement with Distribution Utility
– The Distribution company entitles the Developer to provide Electrical
Energy to occupiers in the premises.
• It prescribes the elements of Charges which Developer can
take from the occupiers i.e.
(i) electricity charges and Government duty exactly at the rate payable by
the developer to Distribution Utility,
(ii) Any Shortfall in between Distribution Utility Bill to the developer and
the developer to Occupiers,
(iii) Operation & Maintenance of Plant & equipment of the developer ,
and
(iv) Other reasonable expenses for transformation/conversion and
distribution of energy utilized for the purpose of providing electrical
energy to the occupiers.

45. Electricity supply to owners/occupants
• Issues
– Can it be sale of electricity (exempted goods)
– Can it be service simpliciter
– Is it sale of electricity (charges for electricity), as also
supply of service for O&M and expenses for
transformation and distribution
• Suggestion : Advance ruling
– Developer mitigates the risk
– Its binding on the AO
– To be provided within 3 months
– AAR to accept as per directions in Sanjeev Sharma case

46. Electricity/water for common areas
• Taxable as maintenance service

47. Levy of GST on Real Estate Transaction
[simple Works contractors ]
PART - IV

48. Rate and exemptions
• Relevant entries

49. know our views on various issues on GST
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THANK YOU
Contact us:
Puneet Agrawal
Partner
ALA Legal, Advocates & Solicitors
Puneet@alalegal.in | +91-9891898911
Website: www.alalegal.in | Blog: www.gstlawindia.com