GST implication on sale of Business immovable property

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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.

CA VENKATASWAMY

CA VENKATASWAMY (Querist)
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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 ?

Lekhraj sood

Lekhraj sood (Expert)
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02 January 2021 No gst is applicable on sale of building whether used for personal or business purpose.

CA VENKATASWAMY

CA VENKATASWAMY (Querist)
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02 January 2021 Thank you soo much sir

CA Galib Mirza

CA Galib Mirza (Expert)
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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.

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