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GST on Sale of developed plots??

08 July 2023

Assessee have 10 Acres of land which he is giving it to developer for development & to sale as developed plots.

Developement activities carried on such land are - Leveling, drainage system , electricity facility , roads etc.

Is GST applicable on developed plots or not leviable to tax just like Sale of Land?

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (171180 Points)
Replied 08 July 2023

GST is applicable on development charges, when charged separately.

GST is also applicable on joint development venture.

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NINAD TARALEKAR (110 Points)
Replied 09 July 2023

@ Dhirajlal Rambhia

Whats your view on point no.14 from Circular issued on 3rd August 2022?

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (171180 Points)
Replied 09 July 2023

Circular No. 177 09 2022-TRU dated 03 August 2022:

The CBIC issued clarifications regarding the applicable GST rates and exemptions on certain services. These are as under:

Taxability of sale of land: Sale of Land after levelling, laying down of drainage lines etc. is sale of land covered under Schedule III of the CGST Act, 2017 and does not attract GST. However, any service provided for development of land, like levelling, laying of drainage lines (as may be received by developers) shall attract GST at applicable rate for such services.

The answer is based on the clarification provided in the circular.