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2022 (9) TMI 785 - GST
Levy of GST - consideration received on sale of sites - advance received towards sale of site - sale of plots after completion of works related to basic necessities - rate of GST - valuation of GST - If GST is chargeable on any of these transactions, can the applicant collect the GST from the prospective buyers? - ITC on the expenses they incur on development - HELD THAT:- The Applicant is an individual who owns land and planning to convert that land into residential sites and sell them to individuals.
CBIC has issued circular No.177 dated: 03.08.2022 and has issued clarification on whether sale of land after levelling, laying down of drainage lines etc., is taxable under GST - Thus CBIC has clarified that land may be sold either as it is or after some development such as levelling, laying down of drainage lines, water lines, electricity lines and sale of such developed land is also sale of land and is covered by Sr. No. 5 of Schedule III of the Central Goods and Services Tax Act, 2017 and accordingly does not attract GST.
Thus in view of entry No. 5 of schedule III of CGST Act 2017 and clarification issued by CBIC mentioned, it is held that sale of land does not attract GST.