GST NN 01/2018 of CT(R) dated 25.01.18 applicable on amount received from customers claiming the benefit of PMAY scheme

Telangana AAR: GST Notification No. 01/2018 of central tax (rate) dated: 25.01.2018 applicable on amount received from the customers claiming the benefit of PMAY scheme

In re M/s. Honer Developer Private Limited(AAR Telangana); TSAAR Order No. 15/2021; 08.10.2021

Facts:

• The Applicant has filed an application in FORM GST ARA-01 under Section 97(1) of TGST Act, 2017 read with Rule 104 of CGST/TGST Rules.
• The applicant is in the business of construction and selling of residential flats. Their current project contains (760) flats of various dimensions and they intend to sell them in the market. They have informed that some of the customers are claiming that they are eligible for the benefit of PMAY scheme and hence insisting to pay a reduced rate of tax under Notification No. 01/2018 dated: 25.01.2018.

Question raised:

• Applicability of Notification No. 01/2018 of central tax (rate) dated: 25.01.2018 issued under the provisions of CGST Act, 2017 on amount received from the customers claiming the benefit of PMAY scheme.

Discussion & Findings:

• Government of India in Notification No. 01/2018 dated: 25.01.2018 has inserted the following entry in Notification No. 11/2017 dated: 28.06.2017 against Serial No. 3, in column (3), in item (4) at sub item (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).”

• In view of the above new entry, if a person is acquiring a dwelling under the credit linked subsidy scheme for economically weaker section fulfilling all the conditions and formalities from designated banks/financial institutions under such scheme then he is eligible for the concessional rate of tax under the said notification.

Held:

Notification is applicable if the condition of credit linked subsidy scheme is availed under PMAY (Urban).

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