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The Applicant owned land and were planning to convert that land into residential sites for sale. The Applicant developed the land according to the District Town and Country Planning Act regulations. The Applicant sought advance ruling to ascertain the GST applicability on sale of these sites.
The AAR observed that in terms of Circular No. 177 dated August 3, 2022, that land may be sold either as it is or after some development. In either case, it is a sale of land covered by Entry 5 of Schedule III of CGST Act which enumerates activities or transactions which shall be treated neither as a supply of goods nor a supply of services and does not attract GST. Accordingly, the AAR ruled that GST is not applicable on consideration and advance received for residential plots/sites proposed to be converted and on plots/sites sold after completion of basic necessities works.
The information provided in this update is intended for informational purposes only and does not constitute legal opinion or advice. Readers are requested to seek formal legal advice prior to acting upon any of the information provided herein. This update is not intended to address the circumstances of any particular individual or corporate body. There can be no assurance that the judicial/ quasi judicial authorities may not take a position contrary to the views mentioned hereinrra quis.
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