AAR Classifies High-Rise Service Apartment Construction as Commercial Building Services Under GST

The present application, dated June 25, 2025, has been filed by a company named Ms SRIPSK Developers LLP (applicant) before the West Bengal Authority for Advance Ruling Goods and Services Tax, 14 Beliaghata Road, Kolkata – 700015 (constituted under Section 96 of the West Bengal Goods and Services Tax Act, 2017).

The applicant is registered under the GST Act and hence possesses a GSTIN no. 19AEFFS1929H1ZS and is located at 36/1A, Elgin Road, Bhawanipur, Kolkata – 700 020. The applicant is involved in a construction activity, and a multi-storey apartment is being constructed by them.

Question Asked by Applicant:

Seeking the West Bengal Authority for Advance Ruling (No. 11/WBAAR/2025-26), dated October 17, 2025, the applicant has asked the following question:

“Question: Classification of construction services being rendered to customers on account of construction of the proposed B+G+31 Storey Service Apartment Building at 27, Matheshwartola Road, Kolkata – 700 046 in terms of Notification No. 03/2019-Central Tax (Rate) dated 29-03-2019 (as amended). Whether the service apartment being constructed would fall under the construction services of multi-storey residential buildings or the construction services of commercial buildings?”

This aforementioned question asked by the applicant is covered under clauses (a) & (b) of subsection (2) of section 97 of the GST Act.

Answer Given by West Bengal AAR:

The following answer has been given by the West Bengal Authority for Advance Ruling Goods and Services Tax (GST) to the question asked by the applicant:

Answer: The service apartment that is being constructed by the applicant will fall under the construction services of commercial buildings and not under the construction services of multi-storey residential buildings.