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GST on land

ajay (advocate) (211 Points)

27 July 2020

we have purchased a piece of agricultural land and then we are soldering it by doing plotting is GST applicable on plot of land we have not taken any advance

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Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 27 July 2020

The plot sold after developing the land with basic amenities alongwith demarcating the land into several small plot of land by creating appropriate fencing is a transaction qualified for taxability under the clause“Construction of complex intended for sale to buyer” and accordingly GST becomes payable on the entire sale of such plot.

but it's depends on case to case, as what type of other amenities given ect.

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Shivam RC (Student) (23683 Points)
Replied 27 July 2020

In general, Sale and Purchase of LAND is out of the purview of GST. It is neither a Supply of Goods nor a Supply of Services by virtue of Para 5 of SCHEDULE III of the CGST Act 2017.

But various ruling ( AAR ) have been given with regard to whether GST is applicable on sale of developed plots or not.

But as per law, GST should not be applicable on sale of land.

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CA Rashmi B (Assistant Manager) (787 Points)
Replied 28 July 2020

GST would not be applicable on the sale of land as it is covered in schedule III. However on plot development GST would be applicable on the plot development charges considering as service . there for it would be better to segregate the plot development charges and discharge only on that value rather than the whole sales value.

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