GST on Plots
GST on Plotted project as per Godrej Properties Limited
Karnataka GST AAR | Order No. KAR ADRG 19/2023 | Dated: 26 April 2023
M/s. Godrej Properties Limited, registered at 10th Floor, Prestige Obelisk, Kasturba Road, Bengaluru-560001, having GSTIN 29AAACG3995M1ZX, filed an application for Advance Ruling under Section 97 of the CGST Act, 2017 read with Rule 104 of the CGST Rules, 2017, and the corresponding provisions of the KGST Act, 2017. The applicant is a Public Limited Company engaged in the development of plots.
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Particulars |
Booking of Plot before receipt of OC |
Booking of Plot after receipt of OC Need help with this? Talk to S T L R & Co → |
Remarks |
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Sale of Only Plots |
NO GST Need help with this? Talk to S T L R & Co → |
NO GST |
No development activity |
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Sale of Plot with basic infrastructure which is must as per Development control regulation of state |
NO GST |
NO GST |
Only mandatory infrastructure like Road, Drainage, Light |
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Sale of Plots with basic infra and Club house and other facilities |
Sale of Plot with basic infrastructure is exempt. GST Applicable on club house and other Facilities |
Sale of Plot with Basic Infrastructure is exempt. GST Applicable on club house and other Facilities |
GST on other facilities and clubhouse to be payable @18%. If price is consolidated, then need to arrive at other facilities/Club house price by adopting the market Value approach |
GST on Plotted Development
Club House & Other Facilities
- GST 18% is applicable
- This applies regardless of whether booking is made before or after receipt of Occupancy Certificate (OC)
Plot Sales
- If plots are sold with basic infrastructure only (roads, drainage, water lines, etc.), they are treated as Land
- No GST is payable on such transactions
- This is because land itself is outside the purview of GST
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