GST leviable on the sale of land provided with construction of primary amenities

Last updated: 07 February 2022
Quick Summary
The Gujarat AAAR has ruled that GST is applicable on the sale of land when primary amenities like water, electricity, and roads are developed by the seller. The authority determined that this constitutes a supply of taxable service under 'Construction services', rather than a simple sale of land. Consequently, an 18% GST rate is leviable on such developed plot sales.

Court :
AAAR, Gujarat

Brief :
The AAAR, Gujarat in the matter of Shree Dipesh Anilkumar Naik [Advance Ruling No. GUJ/GAAAR/APPEAL/2021/35, dated December 12, 2021] affirmed the order passed by the AAR holding that GST is leviable on sale of plot of land, where primary amenities such as water line, electricity line, and other infrastructure are being constructed/developed. Held that, it is a sale of developed plots and will be covered under the scope of supply of taxable service falling under the head of ‘Construction services’. Hence liable to 18% GST.

Citation :
Advance Ruling No. GUJ/GAAAR/APPEAL/2021/35, dated December 12, 2021

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1 Year PLAN
1999
(Excl. of GST ₹359)

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2 Years PLAN
3499
(Excl. of GST ₹629)

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Bimal Jain
Published in GST
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