Gst on land development and then selling without any const

3653 views 5 replies

Sushil

ACA

123 Points Joined October 2007

GST applicability on land developers. Person, who purchases land and he develops the land with an infrastructure such as drainage system, roads and plantation of plants TO MAKE PLOTS SALEBALE. After this development of the land, he will not do any building constructions and all. He sales only developed land as plots. As Land is the exempted from gst, is he required to get gst registration, if so, will he eligible for ITC on the material purchased on land development, as land is the exempted from land ?

What is the provisions/rules under gst, applicable to this kind of business ?

Replies (5)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

208912 Points Joined July 2016

No GST over registration of land, be developed or otherwise........

But if development charges levied separately........ GST at 18% can be levied with ITC benefit.

Pankaj Rawat

GST Practitioner

55062 Points Joined June 2017

No... since land is outside the perview of GST

Sushil

ACA

123 Points Joined October 2007

SIR ONE MORE THING IF THERE IS A COMMON COP PROVIDED TO THE LAND HOLDERS BY THE DEVELOPER BUT NO DEVELPOMENT CHARGES LEVIED SEPERATELY.

WHAT WOULD BE THE POSITION

THANKS IN ANTICIPATION

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

208912 Points Joined July 2016

Simply check.......... what you are getting payment for.............

If only land value........... No GST over it............ but any other supply (alongwith land) as per GST act, GST will be applicable........

anil kumar gupta

partner

22 Points Joined April 2012

if develpor after purchasing land carry out devepoment work like construction of road , drainge , electrification work , contruction of boundry wall ,main gate , garding in such land and sale the land in small size then these work certainly come the purview of civil structure so as to become part of schedule II ITEM 5 (b) as nature of service. if any considartion is received before completion of civil work provision gst will be applicable like a building constructed intended for sale .