GST APPLICABLE ON LAND ?

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Generally, GST is not applicable to land sales, even if basic improvements like levelling or utility line installation have been done. However, GST may apply to development charges if they are billed separately from the land sale. The specific type and extent of development, along with the sale agreement, are crucial factors in determining GST applicability.

Suresh S. Tejwani

Suresh S. Tejwani (Querist)
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07 November 2022 Whether gst is applicable on land on which improvement is done on the land ?

CA Suresh Jain

CA Suresh Jain (Expert)
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07 November 2022 The answer the question correctly it is necessary to know the type and extent of development done and also necessary to go through the Sale agreement. Anyways, the Land sold with basic development done such as levelling, laying down of drainage lines, water lines, electricity lines, etc. is not under the scope of GST and does not attaract GST