GST Turnover Calculation
This query is : Resolved
10 May 2022
Will Sale of Land or Sale of Building form part of GST Turnover for the purpose of GST Registration?
07 July 2024
No, the sale of land or buildings does not form part of GST turnover for the purpose of GST registration. According to GST laws in India:
1. **Exclusion from Aggregate Turnover:** The sale of land and buildings are specifically excluded from the definition of "aggregate turnover" under GST. Aggregate turnover includes all taxable and non-taxable supplies, exempt supplies, and exports of goods and services. However, it excludes the value of inward supplies on which tax is payable by a person on reverse charge basis, as well as the value of supplies taxable under CGST, SGST, IGST, and UTGST.
2. **Definition of Aggregate Turnover:** As per Section 2(6) of the CGST Act, aggregate turnover excludes the value of inward supplies on which tax is payable under reverse charge mechanism, and taxes levied under GST Acts. Therefore, since the sale of land and buildings are excluded from GST, these transactions will not be considered part of your turnover for the purpose of GST registration.
3. **Criteria for GST Registration:** Generally, GST registration is mandatory if your aggregate turnover exceeds the threshold limit specified for your category of business (e.g., Rs. 40 lakhs for goods suppliers in most states, Rs. 20 lakhs for services providers). If your turnover exceeds this threshold due to activities like sale of goods or services, then GST registration would be required. Sale of land or buildings, being outside the scope of GST, would not trigger the threshold for registration.
Therefore, for the purpose of GST registration, you should consider only those supplies that are taxable under GST laws, excluding the sale of land or buildings. If your turnover from taxable supplies meets or exceeds the threshold limit, then you would be required to register for GST.
1. **Exclusion from Aggregate Turnover:** The sale of land and buildings are specifically excluded from the definition of "aggregate turnover" under GST. Aggregate turnover includes all taxable and non-taxable supplies, exempt supplies, and exports of goods and services. However, it excludes the value of inward supplies on which tax is payable by a person on reverse charge basis, as well as the value of supplies taxable under CGST, SGST, IGST, and UTGST.
2. **Definition of Aggregate Turnover:** As per Section 2(6) of the CGST Act, aggregate turnover excludes the value of inward supplies on which tax is payable under reverse charge mechanism, and taxes levied under GST Acts. Therefore, since the sale of land and buildings are excluded from GST, these transactions will not be considered part of your turnover for the purpose of GST registration.
3. **Criteria for GST Registration:** Generally, GST registration is mandatory if your aggregate turnover exceeds the threshold limit specified for your category of business (e.g., Rs. 40 lakhs for goods suppliers in most states, Rs. 20 lakhs for services providers). If your turnover exceeds this threshold due to activities like sale of goods or services, then GST registration would be required. Sale of land or buildings, being outside the scope of GST, would not trigger the threshold for registration.
Therefore, for the purpose of GST registration, you should consider only those supplies that are taxable under GST laws, excluding the sale of land or buildings. If your turnover from taxable supplies meets or exceeds the threshold limit, then you would be required to register for GST.
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