9911796707
TMI Blog2022 (9) TMI 785X X X X Extracts X X X X X X X X Extracts X X X X ..... age lines etc., is taxable under GST - Thus CBIC has clarified that land may be sold either as it is or after some development such as levelling, laying down of drainage lines, water lines, electricity lines and sale of such developed land is also sale of land and is covered by Sr. No. 5 of Schedule III of the Central Goods and Services Tax Act, 2017 and accordingly does not attract GST. Thus in view of entry No. 5 of schedule III of CGST Act 2017 and clarification issued by CBIC mentioned, it is held that sale of land does not attract GST. - KAR ADRG 31/2022 - - - Dated:- 8-9-2022 - DR. M.P. RAVI PRASAD AND SRI. T. KIRAN REDDY, MEMBER Represented by : Santhosh S. Chartered Accountant ORDER UNDER SECTION 98(4) OF THE CGST A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd hence is admissible under Section 97(2)(e) of the CGST Act 2017. 5. BRIEF FACTS OF THE CASE: The applicant furnishes some facts relevant to the issue: 5.1 The applicant states that she owns three acres of land at Sy No.61/8 (old Sy No.61/1), Bagganadu Village, J G Halli Hobli, Hiriyur Taluk, Chitradurga District hereinafter and they will be applying for permission from the concerned Government Authorities to convert this land for residential usage wherein they will be forming small plots of land (residential sites), and sell them to individuals. 5.2 The applicant states that they will be developing the land as per regulations of the District Town and Country Planning Act. The Karnataka Real Estate Regulation Act and other zona ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rship etc. to the DTCPA authorities. h. Comply with the regulations of RERA. i. Sell plots to the customers. j. File relevant documents with the RERA authorities for successful implementation and completion of the project. 5.4 The applicant states that they need to handover the works of the roads, drains, parks, playgrounds, bus stops, places identified for construction of places of worship etc. to the DTCPA authorities. From then, they will start collecting taxes from the owners for maintenance. For all the unsold plots, the applicant have to start paying taxes till they are sold. The development works will then become the property of the authorities and is not sold or transferred to any individual. The transfer of the o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... personal hearing proceedings held on 07-07-2022 and reiterated the facts narrated in their application. FINDINGS DISCUSSION 7. At the outset we would like to make it clear that the provisions of CGST Act, 2017 and the KGST Act, 2017 are in pari-materia and have the same provisions in like matter and differ from each other only on a few specific provisions. Therefore, unless a mention is particularly made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the KGST Act. 8. We have considered the submissions made by the applicant in their application for advance ruling. We have also considered the issues involved on which advance ruling is sought by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r GST as below: 14. Whether sale of land after levelling, laying down of drainage lines etc., is taxable under GST 14.1 Representation has been received requesting for clarification regarding applicability of GST on sale of land after levelling, laying down of drainage lines etc. 14.2 As per Sl no. (5) of Schedule III of the Central Goods and Services Tax Act, 2017, 'sale of land' is neither a supply of goods nor a supply of services, therefore, sale of land does not attract GST. 14.3 Land may be sold either as it is or after some development such as levelling, laying down of drainage lines, water lines, electricity lines, etc. It is clarified that sale of such developed land is also sale of land and is covered ..... X X X X Extracts X X X X X X X X Extracts X X X X
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