The appellant wishes to submit that since the provisions of CGST Act, 2017 and the rules and notifications issued thereunder are in parametric to corresponding provisions in the Maharashtra SGST Act, 2017 and the rules and notifications issued thereunder, the provisions of CGST law alone are referred to in this appeal, which would imply reference to corresponding provisions under the SGST law also unless specified.
The Maharashtra Airport Development Authority(MADC), a company registered under the Companies Act, is a special planning authority under the Maharashtra Regional and Town Planning Act, 1966, for the Multimodal International Hub Airport, Nagpur Project (MIHAN) which includes development of Nagpur Airport as an international hub, development of a Special Economic Zone and other facilities around the Nagpur Airport.
M/s.Chourangi Builders and Developers Pvt. Ltd. has formed a Special Purpose Vehicle (SPV), along with M/s IJM Realty (Mauritius) Ltd., under the name and style of M/s Nagpur Integrated Township Pvt. Ltd., the appellant herein.
The Maharashtra Airport Development Authority(MADC) and the appellant have entered into a Development Agreement, has been granted the right to design, finance, develop, a township project, comprising of residential apartments, commercial complexes, etc. in the land owned by Maharashtra Airport Development Authority(MADC).
As per the agreement, the appellant had been permitted only to grant long term lease of the residential apartments and commercial buildings and the same cannot be sold outright in favour of the buyers. The land in which the construction of flats is undertaken is a leasehold land, which cannot be transferred.
It may be observed that the identified apartment unit in the residential complex is proposed to be given on long term lease for 99 years, expiring on 21.06.2105, against payment of lease consideration by the lessee to the appellant.
The bench comprising of Members, Rajiv Jalota and Sungita Sharma pronounced the order based on an appeal filed by Nagpur Integrated Township Pvt Ltd.
The Appellate Authority for Advance Ruling (AAAR) observed that the transaction between the developer and the lessee is taxable under Goods and Services Tax (GST) and that it is a composite supply of works contract in relation to the construction of a complex, building ie, flats which are intended to be handed over to the buyer and will attract tax at the rate of 18 percent.