GST applicable own land
|
Case Title |
Rabia Khanum vs Commissioner of Commercial taxes and Customs and indirect taxes |
|
Court |
Karnataka High Court |
|
Honorable Judges |
Justice M.P. Ravi Prasad and Justice T. Kiran Reddy |
|
Citation |
2022 (8) GSTPanacea 364 HC Karnataka Advance Ruling No. KAR ADRG 31/2022 |
|
Date |
08-September-2022 |
|
Council for Petitioner |
Mr. Santosh S |
|
Council for Respondent |
Not applicable |
|
In favour of |
Petitioner |
|
Section |
Entry No. 5 of schedule III of CGST Act 2017 |
The Authority for Advance Ruling, M.P. Ravi Prasad and T. Kiran Reddy, has held that AAR held that GST is not applicable for the consideration received on sale of site, GST is not applicable for the advance received towards sale of site and GST is not applicable on sale of plots/sites even when they are sold after completion of works related to basic necessities.
GST applicable own land
FACTS OF THE CASE
The case was that The Applicant is an individual who owns land and planning to convert that land into residential sites and sell them to individuals and the applicant seeks advance ruling whether GST is applicable on sale of these sites.
GST applicable own land
COURT HELD
The AAR has held that:
- GST is not applicable for the consideration received on sale of site.
- 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.
hus 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.
GST applicable own land
ANALYSIS OF THE JUDGEMENT
By noticing the above order we analyse 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. AAR held that GST is not applicable for the consideration received on sale of site, GST is not applicable for the advance received towards sale of site and GST is not applicable on sale of plots/sites even when they are sold after completion of works related to basic necessities.
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