9911796707
TMI Blog2022 (9) TMI 785X X X X Extracts X X X X X X X X Extracts X X X X ..... harging the fee of Rs.5,000/- each under the CGST Act and the KGST Act. 2. The Applicant is an individual and is not registered under GST. The Applicant intends to convert their land into residential sites. 3. The applicant has sought advance ruling in respect of the following questions: i. Whether GST is applicable for the consideration received on sale of sites? If yes, at what rate and on what value? ii. Whether GST is applicable for the advance received towards sale of site? If yes, at what rate and on what value? iii. Whether GST is applicable on sale of plots after completion of works related to basic necessities? iv. If GST is chargeable on any of these transactions, can the applicant collect the GST from the prospective bu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... c, which are basically required for human inhabitation. Without providing these basic necessities, the concerned authorities will not grant permission to sell the plots to individuals for construction of houses. 5.3 The applicant states that the activities they need to follow in a sequence are as under: a. Obtaining conversion of land for residential usage. b. Prepare a plan to divide the land into small pieces and provide basic necessities as per sanctioning authority the District Town and Country Planning Act. c. File the plan with the DTCPA authorities and obtain approval. d. Register the project with The Karnataka Real Estate Regulation Authorities and comply with their requirements. e. Obtain a work order from DTCPA authorit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation, the sale deed will be executed. 5.7 The applicant states that they may be executing agreements with prospective customers only after receipt of the plan approval from DTCPA Authorities. All the prospective buyers are aware of the fact that they will be purchasing a plot worthy of constructing a house to live since the authorities will be maintaining and managing the amenities required for living. 5.8 The applicant states that all unsold plots will be put to sale after completion of the works related to basic necessities, handing over of works of the roads, drains, parks, playgrounds, bus stops, etc to the authorities. 5.9 The applicant states that Schedule III of the CGST Act, 2017 clearly specifies that sale of land is neither sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... III. [See section 7] ACTIVITIES OR TRANSACTIONS WHICH SHALL BE TREATED NEITHER AS A SUPPLY OF GOODS NOR A SUPPLY OF SERVICES 1.---------------- 2.---------------- 3.---------------- 4.---------------- 5. Sale of land and, subject to clause (b) of paragraph 5 of Schedule II, sale of building. 6.---------------- 7.---------------- 8 ---------------- Activities or transactions which shall be treated neither as a supply of goods nor a supply of services are listed under Schedule III of CGST act 2017 and sale of land is listed in entry No. 5 of the same. Thus we can say that sale of land (subject to clause (b) of paragraph 5 of Schedule II, sale of building) is neither a supply of goods nor a supply of services subject to con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... covered by Sr. No. 5 of Schedule III of the Central Goods and Services Tax Act, 2017 and accordingly does not attract GST. 12. Thus in view of entry No. 5 of schedule III of CGST Act 2017 and clarification issued by CBIC mentioned supra we hold that sale of land does not attract GST. 13. In view of the foregoing, we pass the following RULING i. GST is not applicable for the consideration received on sale of site. ii. GST is not applicable for the advance received towards sale of site. iii. GST is not applicable on sale of plots/ sites even when they are sold after completion of works related to basic necessities iv. In view of the ruling given at question (i), this question becomes redundant. v. In view of the ruling given at questi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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