This discussion clarifies the Goods and Services Tax (GST) implications on the sale of immovable property by a sole proprietorship. It explains that the sale of immovable property, regardless of whether it's treated as a business or personal asset, or if depreciation has been claimed, is considered a 'Negative List' item under Schedule III of the CGST Act, 2017. Therefore, no GST is applicable on such sales.
02 January 2021
Hi all, one of client ( sole Proprietorship ) doing business and he purchased one immovable property ( Building ) for both the purposes of personal and business and also in near future he want to sale the property then at the time of sale what is the GST implication if he treat the property as business asset ? or if he treat the property as personal asset then what is the GST implication ?
Whether GST is applicable on sale of immovable property used for the business and claiming depreciation ?
03 January 2021
Sale of an immovable property is covered under Sch III of CGST Act , 2017 i.e. Negative List and hence the same is not taxable under GST irrespective of its use.