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Sale of land gst

srikumar (audit staff) (1203 Points)

23 January 2020

sir, sale of vacant land for the purpose of residential. now gst applicable for sale of vacant land?

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PrabuSubramanianThangavelpilai (CA Article Assistant) (132 Points)
Replied 23 January 2020

Sale of land and building - an immovable property that can't be determined as Goods or Service as per Schedule III of CGST Act.

Construction of complex, building intended for sale to a buyer is considered to be a service and it is liable under GST.

Hence if you are selling an empty land it won't be liable under GST.

Moneesh Nair (0) (609 Points)
Replied 23 January 2020

Sale of land is neither a supply of goods nor a supply of services (as per Schedule III). hence gst is not applicable

Sivaramaraju G (Learner) (2398 Points)
Replied 23 January 2020

GST is not applicable for sale of land as it is not covered under goods as per GST.

Shivam RC (Student) (23683 Points)
Replied 23 January 2020

GST is a "DESTINATION BASED CONSUMPTION TAX" levied on the 'SUPPLY OF GOODS or SERVICES or Both' .

Therefore a transaction needs to be either SUPPLY OF GOODS or SUPPLY OF SERVICES, for the purpose of charging GST.

As per Para 5 of SCHEDULE III of the CGST Act 2017, "SALE OF LAND and subject to clause (b) of Paragraph 5 of SCHEDULE II of the CGST Act 2017 , SALE OF BUILDING" ; is neither treated as Supply of Goods or Supply of Services.

Hence NO GST is applicable on Sale of Vacant Land since it does not constitute a SUPPLY.

Warm Regards.

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