Sale of plots outside GST, but transfer of developed plots as development consideration taxable as works contract service.

Sale or booking of plots in a township development arrangement is treated as sale of land and falls outside GST under Section 7 read with Paragraph 5 of Schedule III; the timing of booking, before or after development, does not alter that character. The landowners' transfer of a 20% share of developed plots to the applicant is not a land sale but consideration for development and works contract services, so it is taxable under GST at 18% as service consideration.

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Issues: (i) Whether booking or sale of plots by the applicant and landowners during development of the township attracts GST. (ii) Whether transfer of 20% share of licensed plotted area by the landowners to the applicant attracts GST and, if so, at what value and rate.

Issue (i): Whether booking or sale of plots by the applicant and landowners during development of the township attracts GST.

Analysis: The arrangement was treated as a joint development agreement involving sale of developed plots by the applicant and the landowners. The transfer of plots in such a transaction was held to be sale of land. Under Section 7 and Paragraph 5 of Schedule III, sale of land is outside the scope of GST, and the timing of booking or sale, whether before or after completion of development, does not change that character.

Conclusion: The booking or sale of plots does not attract GST.

Issue (ii): Whether transfer of 20% share of licensed plotted area by the landowners to the applicant attracts GST and, if so, at what value and rate.

Analysis: The 20% share of developed plots to be transferred by the landowners was treated as consideration for the development and works contract services rendered by the applicant. This transfer was held not to be a sale of land but a service transaction independent of the land sale element, with the value of the plots forming the consideration for the works contract service.

Conclusion: The transfer of 20% share of licensed plotted area attracts GST as works contract service at 18%.

Final Conclusion: The ruling holds that sale of plots in the development arrangement remains outside GST, while the landowners' transfer of a 20% share of developed plots to the applicant is taxable as consideration for works contract services.

Ratio Decidendi: Sale of land is excluded from GST, but a transfer of developed plots made as consideration for development and works contract services is taxable as service consideration.

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