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gst on sale of building and machinery

AJAY KUMAR (accountant) (213 Points)

31 July 2019

when I sale commercial building then gst is applicable or not

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pradeep goyal (Senior Partner) (7561 Points)
Replied 31 July 2019

immovable property is out of GST as it is out from definition of goods. also check schedule III which says supply of land and building (Except when part consideration recieved before completion of construction & issuance of OC) is neither supply of goods nor service.

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Shivam RC (Student) (23683 Points)
Replied 01 August 2019

As per Para 5 of SCHEDULE III of the CGST Act 2017, Sale of LAND and Sale of BUILDING ( subject to clause b of Para 5 of SCHEDULE II ) is neither treated as a SUPPLY OF GOODS OR SUPPLY OF SERVICES.

Hence GST not applicable in sale of commercial building.

TAXABLE EVENT under GST : SUPPLY OF GOODS OR SUPPLY OF SERVICES OR BOTH.

Since Sale of Land and Building is neither treated as Supply of Goods or Services, no GST applicable.

Warm Regards.

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Pankaj Rawat (GST Practitioner) (55032 Points)
Replied 01 August 2019

Yes if the whole consideration ,is received after the completion certificate , then it's not cover under Supply , but if any amount received before completion certificate , it's considered as supply & GST attracts