GST Concessional Rate of 0.75% applicable on Promoter not subcontractor: AAR

The applicant is a Proprietorship concern registered under the provisions of Central Goods and Services Tax Act, 2017 as well as Karnataka Goods and Services Tax Act 2017 (hereinafter referred to as the CGST Act and KGST Act respectively).

The Applicant is engaged in the business of civil construction of residential premises and supplying ‘Works Contract’ service as a sub-contractor to the main contractor (builder), who provides works contract service to construct affordable housing under PMAY scheme for the Economically Weaker Sections.

The applicant has sought advance ruling in respect of the following questions:

1. The applicability of Serial No.3(i) of Notification No.03/2019-Central Tax (Rate) New Delhi, the 29thMarch, 2019 (parent Notification No.11/2017- Central Tax(Rate}, dated the 28th June, 2017 as amended by Notification No.30/2018-Central Tax (Rate}, dated the 31st December, 2018 to the applicant who is one of the sub-contractors to the builder/Developer/Contractor of Affordable housing under PMA Y Scheme.

2. Eligibility of concessional rate of CGST at 0. 75% as per the Notification No.03/2019-Central Tax (Rate) New Delhi, the 29th March, 2019 amended from time to time.

Advance Ruling

1. Serial No. 3(i) of Notification No. 03/2019-Central Tax (Rate) New Delhi, the 29th March, 2019 (parent Notification No.11/2017-Central Tax (Rate), dated the 28th June, 2017 as amended by Notification No. 30/2018-Central Tax (Rate), dated the 31st December, 2018 is not applicable to the applicant who is one of the sub-contractors to the builder/Developer/Contractor of Affordable housing under PMAY Scheme.

2. The concessional rate of COST @ 0. 75% as per entry No. 3 (i) of the Notification No.11/2017-Central Tax (Rate) dated 28.06.2017, as amended by the Notification No. 03/2019-Central Tax (Rate) dated 29.03.2019 is not applicable to the applicant as the said entry is applicable o y to the promoters, but not to the sub-contractors.

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