Valuation of land for GST in real estate project

Abhishek Raja | Last updated: 21 July 2021

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Under current GST laws, the sale of land itself is not subject to GST as it's a state matter. However, for real estate projects involving the construction and sale of property, a specific valuation rule applies. The value of supply involving land transfer is calculated by deducting one-third of the total amount charged, which is deemed to be the value of the land.

As per Entry No. 49 of List-II of Seventh Schedule Taxes on Land and Buildings is a State subject. Therefore, Sales of Land is subject to State Stamp Duty. Constitution grants concurrent powers to Union State to levy GST, subject to recommendations by GST Council. In respect to Land Building, GST Laws have deeming provisions in Schedule-II of the CGST Act. Thus, excluding those deemed supply provisions, GST cannot be imposed on other transactions relating to Land Building. Construction of

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1 Year PLAN

1999

(Excl. of GST ₹359)

BEST VALUE

2 Years PLAN

3499

(Excl. of GST ₹629)

3 Months PLAN

999

(Excl. of GST ₹179)

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About the Author

Abhishek Raja

Practising CA

Blogger at GSTPanacea.com Fellow Member of ICAI M.Com, DISA(ICAI), Certified Indirect Taxes (ICAI)-Experience in the field of Indirect Taxation for 15 years Certified Valuer (ICAI) Member Sales Tax Bar Association (Delhi) Member Taxation Bar Association (Ghaziabad) Ex-Member NIRC Company Law Research Group-2014- ... Read more

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