9911796707
TMI Blog2023 (1) TMI 86X X X X Extracts X X X X X X X X Extracts X X X X ..... ities such as road, boundaries etc. 3. The Applicant submits that the activity undertaken by them is sale of land and is exempt from GST as per Entry No.5 of Schedule III of CGST Act. The activity of sale of land is neither supply of Goods nor supply of services. Hence the activity of sale of land is not covered under the definition of Supply as per Section 7 of the CGST Act, 2017. 4. The applicant has placed reliance on the 47th GST Council press release in which at point No.12 the following is clarified: 12. Sale of land after leveling, laying lawn of drainage lines etc. is sale of land and does not attract GST. 3. The applicant has submitted that CBIC in Point No. 14 of Circular No.177/09/2022-TRU dated 3rd August, 2022 has clarified ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ply; Illustration.- Where goods are packed and transported with insurance, the supply of goods, packing materials, transport and insurance is a composite supply and supply of goods is a principal supply; 5. The applicant has submitted that the intention of them is sale of Land which is principal supply. Other activities such as compound, leveling, laying of drainage etc is naturally bundled with the principal supply i.e. Sale of Land. Hence on this argument also, the activity of the Applicant is sale of Land not covered under the definition of supply and therefore not liable to GST. 6. The applicant further submit that though some element of service in the form of basic facilities is involved in the activity, but that activity cannot be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... supply as per Schedule III 2. The activity is not liable to GST, what is the legal basis of non applicability? Not applicable as not liable to GST 3. If taxable it will be classified under which Service & what will be the Service Accounting Code? Not applicable as not liable to GST 4. What will be the value on which GST will be payable? Whether any abatement available Not applicable as not liable to GST 5. What will be the rate of tax on which GST will be payable? Not applicable as not liable to GST 6. Whether Input Tax Credit will be available or not? Not applicable as not liable to GST 4. Question on which Advance Ruling sought: I. Whether the applicant is liable to pay GST on the sale of Land / Industrial Plot'? II. I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uctures would fall under the Schedule II Para 5 Clause (b) definition of the CGST Act, which is liable to GST, except where the entire consideration for the land is received receiving the completion certificate. 2. The activity is not liable to GST, what is the legal basis of non applicability? In respect of transfer of ownership of land only, as per Schedule III of the CGST Act, the land sale is neither considered a sale of goods nor a supply of services. The land is an immovable property, the sale of which attracts only stamp duty. Thus, GST does not apply to the sale of land. 3. If taxable it will be classified under which Service & what will be the Service Accounting Code? Construction Services, 9954 4. What will be the value o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me provisions in like matter and differ from each other only on a few specific provisions. Therefore, unless a mention is particularly made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the GGST Act. 9. In this case, main issue is to be decides as to whether GST is applicable on the sale of whole plot as such or sale of the individual plot after carrying out some activity. 9.1 For the sake of understanding, the relevant provisions are reproduced herein below: "5. Serial Number 5 to Schedule III of the CGST Act.-Sale of land and, subject to clause (b) of paragraph 5 of Schedule II, sale of building." 11. From the above definition, it is clear that the trans ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ity on such activity in terms of the provisions of GST but applicant have not submitted any such documents in support of such activity. 15. The plotted development is a scheme which involves forming land into layout after obtaining necessary plan approval from the competent Authority of the area where the land is located, get all other permission required to take up, commence and complete what would be the layout, comprised of individual sites. We find that the applicant have not submitted any such documents by which it can be ascertain what types of activities have been permitted by the competent Authority to be carried out on the plot. The applicant has also failed to submit details of amenities to be provided in the plotted scheme and d ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
