Sale of developed plots without receiving any advance from their customers for undertaking development activities is neither a supply of goods nor a supply of service

Last updated: 07 December 2021

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The Kerala Authority of Advance Ruling has determined that selling developed plots of land, where no advance payment was received from customers specifically for the development activities, is not considered a supply of either goods or services. This ruling is based on Paragraph 5 of Schedule III of the CGST Act, 2017. Consequently, such transactions are not subject to Goods and Services Tax (GST).

Court :
Kerala AAR

Brief :
The Kerala Authority of Advance Ruling ("Kerala, AAR") in the matter of M/s Dharmic Living Private Limited [Advance Ruling No. KER/117/2021 Dated May 28, 2021], ruled that the sale of developed plots / land without receiving any advance from their customers for undertaking development activities is neither a supply of goods nor a supply of service as it is covered by Para 5 of Schedule III of the Central Goods and Services Tax Act, 2017 ("CGST Act").

Citation :
Advance Ruling No. KER/117/2021 Dated May 28, 2021

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Judgement posted by

Bimal Jain

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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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