GST on sale of land including building construction

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This query is : Resolved

Tapash Kumar Biswas (Querist)

23 June 2022 Dear Sirs

I am engaged to construct small building after acquiring land and sale to my customers land and building both. My query is that :
1)Am i need to obtain GST Registration for this purpose
2) What is the GST Rate applicable for that purpose and
3) Am I able to take Input Credit for the materials purchased and used to construct the building

Grateful to you if you kindly clear my doubts

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)

09 July 2022 for this a conjoint reading of Schedule II and Schedule III is required to be met. according to Schedule II construction of complex, building, civil structure including a complex or building intended for sale to a buyer, except where entire consideration has been received after issuance of completion certification shall be treated as supply of services under GST and Schedule III exempts a sale of plot of land and building from GST. so conjoint reading would imply that GST is payable only on under construction property. so in your case if you are engaged in sale of property before completion then you are liable for GST. othewise if you are selling completed property and the entire consideration is received only after completion of construction then it would not be treated as supply under Schedule III.
In any case you are not eligible for input tx credit under section 17(5).

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