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GST Applicability on sale of plots

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This query is : Resolved

Chandra Kala (Querist)

02 January 2025 Whether GST is applicable in the case of realestate of regular purchase and sale of sites / plots (Including development of plots)

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

02 January 2025 The sale of land, in its undeveloped form, is exempt from GST. Even if some development activities like leveling, laying drainage lines, or providing basic amenities have been carried out, the sale of such developed land is still considered a sale of land and does not attract GST. This has been clarified by the CBIC Circular No. 177/Sept./2022-TRU.

Any services provided for the development of land, such as leveling, laying of drainage lines, etc., will attract GST at the applicable rate for such services (at 18%). This means that while the sale of the developed land itself is exempt, the services used to develop it are taxable.

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