Booking/selling plots during development of township amounts to 'sale of land'; but services of development of land taxable @18%
Court :
AAR Haryana
Brief :
The Hon'ble AAR Haryana in M/s. Informage Reality Private Limited [Advance Ruling No. HAR/HAAR/R/2018-19/15 dated October 5, 2018] has held that booking/ selling of plots to be done by the Applicant and the Landowners during the development of the township will remain a transaction of sale/transfer of land and thus, will not attract GST as per co-joint reading of Section 7 and Paragraph 5 of Schedule lll of the Central Goods and Services Tax Act, 2017 ('CGST Act'). However, the transfer value of the plots will be considered as consideration paid by the Landowners for the services of development of land rendered by the Applicant and will be regarded as Works contract services, hence, attracting 18% GST.
Citation :
Advance Ruling No. HAR/HAAR/R/2018-19/15 dated October 5, 2018
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Judgement posted by
Bimal Jain
Service
FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more
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