TMI BlogGST on ShopsX X X X Extracts X X X X X X X X Extracts X X X X ..... If someone unregistered in GST purchases land and after demarking as 80 commercial shops, sales 45 shops without construction as land for shop and 35 shops after built up. Each shop is valued more than 75 lacs. Being commercial shops, is he liable to registered in GST? Is sale value of unconstructed/ not built up shops also to be considered for valuation gst liability or only of constructed sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ops ? Here completion certificate is not being provided by any authority. Which any other documents can be treated as completion certificate ? - Reply By KASTURI SETHI - The Reply = (i) Semi-constructed/incomplete construction of the shop/building etc. is taxable. (ii) The proof of first occupation is considered as completion certificate. - Reply By Shilpi Jain - The Reply = Sale of land ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for shop - not liable to GST. However if subsequently on sale of land the said person has done the construction then liability of GST will arise. Some more details required. Whether the plan for the shop was applied for approval to the local authorities? Were the shops sold after the entire construction was completed? Also are these shops in one locality having common facilities? In cases wher ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e there is legally no requirement to issue CC, the certificate issued by chartered engineer, etc. as mentioned in entry 5b would be relevant ........under any law for the time being in force and in case of non-requirement of such certificate from such authority, from any of thefollowing, namely:-(i) an architect registered with the Council of Architecture constituted under the Architects Act, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1972; (20 of 1972.) or(ii) a chartered engineer registered with the Institution of Engineers (India); or(iii) a licensed surveyor of the respective local body of the city or town or village or development or planning authority; - Reply By Gagan Bansal - The Reply = The land was purchased and after payment of development charges to the municipal committee, the shops were marked as per map prepar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed for self use. No plan for the shop was applied for approval to the local authorities. 35 shops out of 80 were sold after the entire construction was completed? All these shops are in one locality having some common facilities? As there is no legal requirement to take CC, so the certificate issued by chartered engineer, etc.was also not taken. - Reply By Amit Agrawal - The Reply = Broadly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... I agree with Ms. Shilpi Jain Mam! But, context of query and factual aspects are still not clear. For example: meaning of 'sales 45 shops without construction as land for shop'? - Reply By Padmanathan Kollengode - The Reply = The below views are only my opinion. Expert may please correct me if I am wrong. At the outset, when alleging that an activity is taxable supply, the onus is on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... department to prove the same. now, regarding the query, 1. there will not be any GST on sale of land for 45 shops as it is covered under Schedule III. 2. Regarding the sale of 35 shops, following provision is relevant: Schedule II to CGST Act, 2017 : 5. Supply of services The following shall be treated as supply of services, namely:- (b) construction of a complex, buildi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng, civil structure or a part thereof, including a complex or building intended for sale to a buyer, wholly or partly, except where the entire consideration has been received after issuance of completion certificate, where required, by the competent authority or after its first occupation, whichever is earlier. Explanation .-For the purposes of this clause- (1) the expression competent aut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hority means the Government or any authority authorised to issue completion certificate under any law for the time being in force and in case of non-requirement of such certificate from such authority, from any of the following, namely:- (i) an architect registered with the Council of Architecture constituted under the Architects Act, 1972; (20 of 1972.) or (ii) a chartered engineer registe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red with the Institution of Engineers (India); or (iii) a licensed surveyor of the respective local body of the city or town or village or development or planning authority; (2) the expression construction includes additions, alterations, replacements or remodelling of any existing civil structure; Thus, if there is no requirement for obtaining completion certificate from competent auth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ority, then certificate from architect/ chartered engineer/ licensed surveyor was required to be obtained. However, in your case you have not obtained the same. Therefore, the department may take a stand that the activity is covered under schedule II and not schedule III and hence taxable, unless you are able to prove that the entire consideration was received after first occupation. One more a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... spect to be examined is whether it will be sufficient to obtain a certificate from architect/ chartered engineer/ licensed surveyor stating that construction was completed at a date which is before the consideration was received. - Reply By Shilpi Jain - The Reply = As Amitji has stated, more clarity on facts required along with review of the documentation to properly advice on this matter. Imp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lication could be big - GST on Shops - Query Started By: - Gagan Bansal Dated:- 26-1-2023 Goods and Services Tax - GST - Got 6 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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