OTHER SERVICES’ NOT PART OF COMPOSITE SUPPLY WITH MAIN CONSTRUCTION SERVICE, CHARGEABLE TO GST @ 18%

MAHARASHTRA AUTHORITY FOR ADVANCE RULING
GOODS AND SERVICES TAX

Case Name: In re Puranik Builders Ltd. (GST AAR Maharashtra)
Appeal Number: Advance Ruling No. GST-ARA- 68/2019-20/B-52
Date of Judgement/Order: 27/08/2021

ORDER

(Under Section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017)

NO.GST-ARA- 68/2019-20//B- 52                                                           

                   Mumbai, dt. 27.08.2021

For reasons as discussed in the body of the order, the questions are answered thus –

Question: – (i) Whether the Other Charges received by the company will be treated as consideration for construction services of the Company and classified under HSN 9954 along with the main residential construction services of the Company or
(ii) Whether the same will be treated as consideration for independent service(s) of the respective head?

Answer: – (i) “Other Charges” received will not be treated as consideration for construction services of the Company and is not classified under SAC 9954 along with the main residential construction services.
(ii) The ‘other charges’ will be treated as consideration received against supply of independent service(s) of the respective heads.

Question: – (b) Consequently, what will be the applicable effective rate of GST on services underlying the Other Charges?

Answer: – As per the above discussion, the applicable rate of GST on services underlying the Other Charges would be as per the SAC prescribed under Notification No.11/2017 CT (R) dated 28.6.2017and are liable to GST @ 18%. Further, the applicant has to pay GST on the entire consideration received as ‘other charges’, without any abatement.

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