AAR, ST Liability & Rates on Construction, Maintenance & Exemptions: Case of Om Prakash Mahawar, AAR WB Ruling Dated 8th May 2025. The applicant intends to get a land from West Bengal Housing Infrastructure Development Corporation Ltd, on 99 years lease for setting up of Hotel-cum Shopping and Multiplex under the principal use- Assembly – Mercantile Retail, which includes the permission to construct certain area as residential flats.
— AAR ruled that GST on construction work for prospective clients, regardless of whether one charges a lump sum or periodic payments is liable to be paid. The applicable SAC (and not HSN Code) on this supply is 9954 (Construction Services) and the applicable tax rate on the supply under consideration shall be 18%.The applicant is eligible for a deduction as attributable to land portion i.e. 1/3 of consideration on the total value of supply for the purpose of payment of applicable tax. GST is payable on monthly/annual maintenance charges as per entry in sl. no. 33 of Notification No. 11/2017. The SAC Code (and not HSN code) in this case would be 9995 and the applicable GST rate is 18%.