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Will a open plot attract gst and is it required to pay to seller.

346 views 4 replies

Ashok

Engineer

21 Points Posted on 02 July 2018

I am planning to buy an open plot. The deal price is finalized with terms of payment. (Cash + Bank loan)

Now the seller says that I need to bear the GST @ 18% on the amount given to him through Bank loan.

Does an open plot attracts GST, if yes at what percentage ( 6% or 12% or 18% or 28%) ?

Please share your suggestions at the earliest.

Illustration:

Cost of plot : Rs 50,00,000

Payment by Cash: Rs 15,00,000

Bank loan: Rs: 35,00,000

GST @ 18% on Bank loan - Rs 6,30,000

Replies (4)

CA ABHAY GUPTA

Practice

3235 Points Posted on 02 July 2018

GST levy on movable goods... land being an immovable good not liable to GST refer section 2(52) of CGST ACT

Pankaj Rawat

GST Practitioner

55067 Points Posted on 02 July 2018

As per Schedule III (5) , Land out of GST , so three no GST on sale & purchase of Land

Vinod Babu

24196 Points Posted on 02 July 2018

Currently, the sale of land and buildings have been kept out of the ambit of GST.
Even Stamp duty and registration charges are outside the ambit of GST

Shivam RC

Student

23693 Points Posted on 03 July 2018

Agree with Pankaj Sir...

Sale of Land and Building are neither treated as Supply of Goods nor Supply of Services under SCHEDULE III Para 5. Hence there is no GST on Purchase of an open Land. Only Stamp Duty and Registration charges are levied.