Rabia Khanum, In re - Taxpublishers.in

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The Tax Publishers 2022 TaxPub(GST) 1478 (AAR-Karn) : (2022) 108 ITPJ (G) 0163 AUTHORITY FOR ADVANCE RULINGS, KARNATAKA M.P. RAVI PRASAD AND SRI. T. KIRAN REDDY, MEMBER In re Rabia Khanum, KAR ADRG 31/2022 8 September, 2022 Represented by : Santhosh S. Chartered Accountant Order under section 98(4) of the CGST Act, 2017 & under section 98(4) of the KGST Act, 2017 ORDER M/s. Rabia Khanum, No.19/2-6, Ranoji Rao Road, Basavanagudi, Bengaluru-560004 (hereinafter referred to as 'The applicant') have filed an application for Advance Ruling under section 97 of CGST Act, 2017 read with Rule 104 of CGST Rules, 2017 and section 97 of KGST Act, 2017 read with Rule 104 of KGST Rules, 2017, in FORM GST ARA-01 discharging the fee of Rs.5,000 each under the CGST Act and the KGST Act. 2. The Applicant is an individual and is not registered under GST. The Applicant intends to convert their land into residential sites. 3. The applicant has sought advance ruling in respect of the following questions: (i) Whether GST is applicable for the consideration received on sale of sites? If yes, at what rate and on what value? (ii) Whether GST is applicable for the advance received towards sale of site? If yes, at what rate and on what value? (iii) Whether GST is applicable on sale of plots after completion of works related to basic necessities? (iv)If GST is chargeable on any of these transactions, can the applicant collect the GST from the prospective buyers? (v) If GST is chargeable on any of these transactions whether the applicant is eligible for claiming Input Tax Credit that they pay on the expenses they incur on development? 4. Admissibility of the application: The question is about the determination of the liability to pay tax on any goods or services or both and hence is admissible under section 97(2)(e) of the CGST Act 2017. 5. BRIEF FACTS OF THE CASE: The applicant furnishes some facts relevant to the issue: 5.1 The applicant states that she owns three acres of land at Sy No.61/8 (old Sy No.61/1), Bagganadu Village, J G Halli Hobli, Hiriyur Taluk, Chitradurga District hereinafter and they will be applying for permission from the concerned Government Authorities to convert this land for residential usage wherein they will be forming small plots of land (residential sites), and sell them to individuals. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers 2022 TaxPub(GST) 1478 (AAR-Karn) : (2022) 108 ITPJ (G) 0163

AUTHORITY FOR ADVANCE RULINGS, KARNATAKA

M.P. RAVI PRASAD AND SRI. T. KIRAN REDDY, MEMBER

In re Rabia Khanum,

KAR ADRG 31/2022

8 September, 2022

Represented by : Santhosh S. Chartered Accountant

Order under section 98(4) of the CGST Act, 2017 & under section 98(4) of the KGST Act, 2017

ORDER

M/s. Rabia Khanum, No.19/2-6, Ranoji Rao Road, Basavanagudi, Bengaluru-560004 (hereinafter referred to as 'The applicant') have filed an application for Advance Ruling under section 97 of CGST Act, 2017 read with Rule 104 of CGST Rules, 2017 and section 97 of KGST Act, 2017 read with Rule 104 of KGST Rules, 2017, in FORM GST ARA-01 discharging the fee of Rs.5,000 each under the CGST Act and the KGST Act.

2. The Applicant is an individual and is not registered under GST. The Applicant intends to convert their land into residential sites.

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

(i) Whether GST is applicable for the consideration received on sale of sites? If yes, at what rate and on what value?

(ii) Whether GST is applicable for the advance received towards sale of site? If yes, at what rate and on what value?

(iii) Whether GST is applicable on sale of plots after completion of works related to basic necessities?

(iv)If GST is chargeable on any of these transactions, can the applicant collect the GST from the prospective buyers?

(v) If GST is chargeable on any of these transactions whether the applicant is eligible for claiming Input Tax Credit that they pay on the expenses they incur on development?

4. Admissibility of the application: The question is about the determination of the liability to pay tax on any goods or services or both and hence is admissible under section 97(2)(e) of the CGST Act 2017.

5. BRIEF FACTS OF THE CASE: The applicant furnishes some facts relevant to the issue:

5.1 The applicant states that she owns three acres of land at Sy No.61/8 (old Sy No.61/1), Bagganadu Village, J G Halli Hobli, Hiriyur Taluk, Chitradurga District hereinafter and they will be applying for permission from the concerned Government Authorities to convert this land for residential usage wherein they will be forming small plots of land (residential sites), and sell them to individuals.