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Gst on sale of plot

18 March 2018

I have purchased open plot long back. now I will sell the same to another individual who is unregistered under Gst. and my slef also individual- URD.

Is it attract Gst on open plot or not if so what is the rate?

can pls.share your valuable ideas.

Murali

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9 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177741 Points)
Replied 18 March 2018

No GST liability over sale of plot/land.

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MURALI NADIMINTI (502 Points)
Replied 18 March 2018

thank you sir, have any provision in Gst? some body else charged @ 12 % or 18%

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177741 Points)
Replied 18 March 2018

As per paragraph 5 of schedule III activities or transaction relation to sale of land and subject to clause b of paragraph 5 of schedule II, sale of building shall not be treated as supply.

Clause b of paragraph 5 of schedule II reads as “construction of a complex, building, civil structure or a part thereof, including a complex or building intended for sale to a buyer, wholly or partly, except where the entire consideration has been received after issuance of completion certificate, where required, by the competent authority or after its first occupation, whichever is earlier”.

So, it is quite clear that sale of land will not attract GST and sale of building after obtaining completion certificate or after its first occupation will not attract GST.

MURALI NADIMINTI (502 Points)
Replied 18 March 2018

thank you

Shiva Karnati (CA FInal) (49 Points)
Replied 12 July 2018

Dear Sir,

We are a company purchased agriculture land in 1990 and converted into non agriculture and made developments like Road, drinage and electrical. After developing we are selling the plots to customers. In our case whether GST is applicable or not? If yes how to calculate.

Thank You

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CA Siva Kumar Reddy (Practice) (30 Points)
Replied 29 December 2018

GST still not applicable as long as your selling plot of land as land even if you have undertaken any developmental activities.

In your case GST not applicable as your selling land only.

Ravi SADhiyan (Practice) (4510 Points)
Replied 29 December 2018

Originally posted by : Shiva Karnati
	Dear Sir, We are a company purchased agriculture land in 1990 and converted into non agriculture and made developments like Road, drinage and electrical. After developing we are selling the plots to customers. In our case whether GST is applicable or not? If yes how to calculate. Thank You

You are selling Plot Than No GST

Kalpana Raju (2 Points)
Replied 01 November 2019

Dear Sir, I have taken the land from a landlord on development basis with 60:40 ratio with the developer share of 40 and owner share of 60. I being the developer has developed the land into open plots along with the infrastructure of Roads, drainage, waterline , compound wall and plantation. Is the GST applicable on the developer or landlord share though you have clarified that there is no GST on sale of land. Could you please clarify if there are any GST implication in my case..Thanks in advance

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177741 Points)
Replied 01 November 2019

GST is applicable over development of land, i.e. over joint development venture at 18% rate... also when you sell your share GST will be applicable as being under developed property.

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