PLS different from construction service - Attracts 18%GST
The Appellate Authority for Advance Rulings (AAAR) of Haryana has ruled that preferential location service (PLS) is different from construction and will attract GST at the rate of 18 per cent. PLS is an additional consideration collected along with consideration for sale of properties attracts GST rate of 18 per cent where sale/transfer of constructed property has taken place before issuance of completion/occupation certificate (CC/OC) the AAAR opined while disposing an appeal application filed by realty major DLF. PLS helps buyers get a directional advantage or floor rise, and attracts a preferred location charge (PLC) that is levied for units that are better located than others in the same premises, such as the ones facing a park, open area or even corner flats. This amount collected is over and above the basic sales price (BSP) and hence cannot be considered as part of construction service The West Bengal Appellate Authority for Advance Ruling had ruled earlier, while also addi...