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Cus - Export of non-basmati rice - Notification 20/2023 insofar as it denies the benefit of the transitional arrangement as contained in para-1.05 of the FTP 2023, is bad in law: HCCus - Refund of SAD - 102/2007-Cus - Areca Nut and Supari are one and the same - Objections with regard to name, nature and status of importer or buyers or the end use of goods purchased by them etc. are extraneous: HCCX - Interest on Refund - Since wrong order annexed by petitioner in paper book, Bench is unable to proceed further - Petition is dismissed with liberty to file a fresh one: HCGST - No E-way bill - When petitioner imports machinery and after Customs clearance, transports same to his own factory, it cannot be said that such a transportation would fall within the definition of term 'supply' - Penalty imposable under second limb of s.129(1)(a): HCGST - Fix responsibility on officers who allowed BG to lapse - Petitioner not justified in not renewing BG - Cost of Rs.15 lacs imposed, to be paid to PM Cares Fund: HCGST - Since the parties agree that petition can be disposed of on the basis of records available before Appellate Authority, petitioner is directed to enclose all documents filed before Appellate Authority in a compilation, in form of a paper book: HCWrong RoadST - Whether any service is used for personal consumption or not is certainly question of fact and being question of fact, no substantial question of law arises: HCGovt proposes to amend Geographical Indication of Goods Rules; Draft issued for feedbackST - If what has been paid as tax is without authority of law, Revenue should refund the same - Denial of credit would result in the whole exercise being tax neutral: HCWarehousing Authority notifies several agri goods to be stored in only registered warehousesST - Even if the petitioner may have a case on merits, it is best left to be decided by the Appellate Authority under the hierarchy prescribed under the FA, 1994: HCUS FDA okays Eli Lilly Alzheimer’s drugGST - Petitioner challenges jurisdiction of assessing officer - Petitioner is entitled to file an appeal u/s 107 by availing an alternate efficacious remedy: HCFive from Telangana killed in car accident on Pune-Solapur HighwayGST - Existence of an alternative remedy is a material consideration but not a bar to the exercise of jurisdiction: HCHush money case against Donald Trump - Sentencing deferred to Sept 18GST - It is open to a trader to take goods by whichever route he opts, unless the law otherwise requires, destination point being intact: HCDeadly hurricane Beryl smashes properties in JamaicaGST - Conclusion that taxable person is providing a service to supplier while taking the benefit of a discount by facilitating an increase in the volume of sales of such supplier is ex facie erroneous and contrary to the fundamental tenets of GST law: HCIsrael claims 900 militants killed in Rafah since May monthGST - Order expressly records that personal hearing notice was returned with endorsement 'no such person at address' - Since petitioner has shifted to a new premises, it is just and necessary to provide an opportunity to contest demand: HC116 die in stampede at UP ’Satsang’I-T- Application for revision of order dismissed in limine on grounds of delay; case remanded for re-consideration: HCWe are deepening economic ties with India, says US officialI-T- As per Section 119(2)(b), power to condone applications relate to claims for amount exceeding Rs 50 lakhs are to be considered by CBDT; however it is impermissible for CBDT to pass order on merits: HC8 Dutch engineers build world’s longest bicycle - 180 feet, 11 inchesI-T- Additions framed u/s 68 for unexplained income & u/s 69 for unexplained expenditure not tenable where complete transactional details are furnished & not doubted: HCRailways earns Rs 14798 Crore from Freight loading in June monthI-T- Delay in filing ITR is per se insufficient reason to estimate assessee's profit @15% on turnover, more so where audited financial report is filed in timely manner: ITATMoD inks MoU to set up testing facilities in Unmanned Aerial System in TN Defence Industrial CorridorI-T- For invoking section 69A, assessee should be found to be owner of any money, bullion, jewellery or other valuable article & which is not recorded in the books of account: ITATGovt proposes Guidelines for ethical approach to Coal MiningI-T- TDS credit can be allowed based on AIS, where details pertaining to TDS, advance tax & other payments are reflected in Form 26AS: ITATVaishnaw to inaugurate Global IndiaAI Summit 2024I-T- Lending money with the primary intention of earning interest can be considered a business activity, but nature and manner of lending, as well as the frequency, should be taken into account: ITAT
 
GST to tax NOT ready-to-move-in but only under-construction property

By TIOL News Service

NEW DELHI, DEC 14, 2017: The CBEC today clarified the applicable rate of GST on under-construction as well as ready-to-move-in property. What will attract GST is the construction of a complex, building, civil structure or part thereof, intended for sale to a buyer, either wholly or in part, except where the entire consideration was received after issuance of completion certificate, where required, by the competent authority or after its first occupation, whichever was earlier.

The CBEC clarification states that the sale of ready-to-move-in or completed property would not attract levy of GST. Hence, GST will be levied only on under-construction property.

Firstly, w.r.t. property on which completion certificate had been issued, the clarification states that no GST would be levied on ready-to-move-in or completed property, as per the Paragraph 5(b) of the Third Schedule to the CGST Act, 2017. Secondly, w.r.t. under-construction property, the clarification envisages two circumstances -

i) where the entire amount of consideration for the property was paid to the builder of such property before July 01, 2017, no GST would be leviable. This would be even though the construction was completed after July 01, 2017. However, such transaction would attract Service Tax @ 4.5%, considering that as per the Service Tax (Point of Taxation Rules), 2011 where the invoice was raised or payment was made prior to the appointed date under GST, the point of taxation would arise before the appointed day. Thus, such transaction would attract levy of service tax and not GST;

ii) where part amount of the consideration for the property was paid to the builder of such property, before July 01, 2017, Service Tax @ 4.5% would be leviable on the invoices raised or on consideration paid before July 01, 2017. However, any payment made by the property buyer to the builder on or after July 01, 2017 against invoices issued on or after July 01, 2017 would attract GST @ 12%.

Lastly, the clarification also makes it clear that in case of purchase of under-construction residential or commercial property, from a builder, involving transfer of interest in land or individual share of land to the buyer, the effective rate of GST for such purchase would be 12%, with full Input Tax Credit. It is also clarified that GST would be levied @18% on 2/3rd of the amount of the property, whereas 1/3rd of the amount was deemed to be value of land or undivided share of land supplied to the buyer. It is further clarified that consideration amount which did not constitute transfer in land or undivided share of land as part of the consideration, for instance, construction services provided by a sub-contractor to a builder, would attract levy of GST @ 18%, with full Input Tax Credit.


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