| Question And Answer | |
|---|---|
| Subject: | GST ON PLOTTING SCHEME |
| Category: | GST |
| Querist: | KARAN SHAH |
| Answered by: | Advocate C.B.Thakar |
| Tags: | GST, plotting scheme of land |
| Date: | July 26, 2022 |
The assessee is engaged in plotting scheme wherein he provide common road, drainage, electricity connection and common clubhouse.
The assessee sells plot of land with such above common amenity.
Whether GST APPLICABLE ON SALE OF PLOT.
The sale of land is neither supply of goods or services as per entry 5 in Schedule III to the GST Act. Therefore, if the sale is considered to be sale of land even after plotting, then it will be outside scope of GST and no tax will be attracted.
However, there are certain Advance Rulings wherein the view is taken that such sale of plotted land is liable to GST as it is not sale of plain land. Latest AR in the series is the order of appellate authority for Advance Ruling, MP in case of Bhopal Smart City Development Corporation Ltd. (Order No.MP/AAAR/01/2022 DT.13.4.2022). In this case the learned AAAR has held that sale of land after plotting is liable under GST as it is not sale of land simplicitor. However, the issue has been considered by the GST Council and in the latest 47th Council Meeting, the recommendation is made to make sale of such plots exempt from GST. The issue is covered in press release given by Government and in the press release item no.12 reads as under:
“12. Sale of land after leveling, laying down of drainage lines etc. is sale of land and does not attract GST.”
However, effective notifications etc. have still not come. The situation will depend upon statutory pronouncement by way of notification etc.. The situation be considered accordingly.