Effectivity of new tax rate of 7.5% for real estate projects

Last updated: 18 August 2021

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Quick Summary

This ruling clarifies the application of the new 7.5% Goods and Services Tax (GST) rate on real estate projects, specifically concerning villa developments in Kerala. Victoria Realtors, a partnership firm promoting gated community villa projects in Kerala, sought this advance ruling. The decision considers the provisions of the Central and Kerala State GST Acts.

Court :
KERALA AUTHORITY FOR ADVANCE RULING GOODS AND SERVICES TAX DEPARTMENT

Brief :
Whether the answer given for the first question to VRINDHAVAN project is also applicable to the other similar projects in similar situations.

Citation :
KER/116/2021

KERALA AUTHORITY FOR ADVANCE RULING
GOODS AND SERVICES DEPARTMENT TAX, TAX TOWER,

OF :Shri. KARAMANA, THIRUVANANTHAPURAM — 695002

BEFORE THE AUTHORITY Sivaprasad S, IRS& : Shri. Senil A K Rajan

M/s. Victoria Realtors (hereinafter referred to as the applicant) is a partnership firm registered in Tamil Nadu and engaged in promotion of gated community villa projects in the State of Kerala for the prospective villa buyers.

2. At the outset, the provisions of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as CGST Act) and the Kerala State Goods and Services Tax Act, 2017 (hereinafter referred to as KSGST Act) are same except for certain provisions. Accordingly, a reference hereinafter to the provisions of the CGST Act, Rules and the notifications issued there under shall include a reference to the corresponding provisions of the KSGST Act, Rules and the notifications issued there under.

Please find attached the enclosed file for the full judgement

FAQ :

The new tax rate under discussion is 7.5% for real estate projects.

Victoria Realtors, a partnership firm registered in Tamil Nadu and engaged in promoting gated community villa projects in Kerala, is seeking the advance ruling.

Victoria Realtors promotes gated community villa projects in the State of Kerala.

The Central Goods and Services Tax Act, 2017 (CGST Act) and the Kerala State Goods and Services Tax Act, 2017 (KSGST Act) are relevant.