Sale of plots in open land

• GST Applicable? No, the sale of open land/plots is not subject to GST.

• GST Number Required? No GST number is required if your activity is strictly limited to selling plots of open land.

The GST answer is correct: sale of open land is excluded from GST under Schedule III of the CGST Act, 2017. Land is not treated as goods or services for GST purposes. No GSTIN required for this activity.

One thing to plan for: INCOME TAX still applies even where GST does not.

For individuals selling plots:

1. If you held the land for more than 24 months before sale, it qualifies as LONG-TERM CAPITAL GAINS. For sales after July 23, 2024, the rate is 12.5% without indexation.
2. If held for 24 months or less, SHORT-TERM CAPITAL GAINS apply at your normal slab rate.
3. If the scale or frequency of sales suggests a commercial development activity (subdividing and selling many plots in short succession), the tax department may classify income as BUSINESS INCOME instead of capital gains. This changes both the rate and advance tax obligations.

If you are selling 2 or 3 plots over a few years as a one-time activity, capital gains treatment is likely. If you are doing this as a regular developer-type operation, get a CA involved before filing.

This [capital gains tax guide for land and agricultural property](https://taxgarden.in/blog/capital-gains-tax-sale-agricultural-land-rural-urban-india-ay-2026-27) covers the Section 54B exemption and the urban vs rural land distinction.