Schedule III Land sale is Non GST supply & the Building sold & the consideration/Amount received After the completion certificate is also considered as Non GST supply
5. "Sale of land and, subject to clause [b] of paragraph 5 of SCHEDULE II, sale of building."
Para 5 of SCHEDULE III states that Sale of Open Land and Sale of Completed Building is not treated as Supply of either Goods or Services. Therefore no GST is levied on the Sale of Land and Completed Building.
But as far as Clause (b) of Para 5 of SCHEDULE II is concerned in the provision, it tells that if a Building is sold/ advance is received from the purchaser at the CONSTRUCTION STAGE, then it would be treated as Supply of SERVICES and accordingly GST would be levied at the prescribed rate.
Therefore, in a nutshell :
1). Sale of Open Land and Completed Building : NO GST LEVIED ( since no supply as per Schedule III).
2). Sale of Under-Construction Building/Flats : GST LEVIED (since it is a SUPPLY OF SERVICE as per Schedule ll ).
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