Booking/selling plots during development of township amounts to 'sale of land'; but services of development of land taxable @18%

Last updated: 10 February 2021

Court :
AAR Haryana

Brief :
The Hon'ble AAR Haryana in M/s. Informage Reality Private Limited [Advance Ruling No. HAR/HAAR/R/2018-19/15 dated October 5, 2018] has held that booking/ selling of plots to be done by the Applicant and the Landowners during the development of the township will remain a transaction of sale/transfer of land and thus, will not attract GST as per co-joint reading of Section 7 and Paragraph 5 of Schedule lll of the Central Goods and Services Tax Act, 2017 ('CGST Act'). However, the transfer value of the plots will be considered as consideration paid by the Landowners for the services of development of land rendered by the Applicant and will be regarded as Works contract services, hence, attracting 18% GST.

Citation :
Advance Ruling No. HAR/HAAR/R/2018-19/15 dated October 5, 2018