The Kerala Authority of Advance Ruling (AAR) ruled that 12% of GST is applicable to construction services of lowcost housing units for flood-affected individuals in Kerala.
The Applicant, Habitat Technology Group is a non- governmental organization in the shelter sector having sustainable building solutions and green and humane architecture. They are registered as a charitable society. They are providing services in the field of construction of residences and affordable housing, architectural advisory services, execution of government contracts, etc with special focus on environment-friendly construction.
M/s. Sri Sathya Sai Trust, Kerala a charitable organisation engaged in various charitable activities across Kerala has awarded a rehabilitation project to the applicant for providing affordable shelter to the 2018 flood victims.
The applicant has sought advance ruling on the issues that whether the services provided by the applicant to Sri Sathya Sai Trust for construction of low-cost housing units for flood-affected individuals in Kerala fall within the ambit of Serial number (i), (v) or (VA) of Notification No.11/2017- CT(R) dated June 28, 2017, as amended by Notification No. 03/2019 – CT (R) dated March 29, 2019.
The Authority consisting of Joint Commissioner of Central Tax, Shivprasad S. IRS and Additional Commissioner of State Tax, ruled that the services provided by the applicant to Sri Sathya Sai Trust for construction of low-cost housing units falls within the ambit of Sl No.3 (v) of Notification No. 11/2017- Central Tax (Rate) dated June 28, 2017, as amended and is liable to GST at the rate of 12% (6% CGST and 6% SGST).
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