GST ON Plotting(Land development and sale)

[RameshBabu Kari]

Dear Experts,

GST applicability on land developers. Person, who purchases land and he develops the land with an infrastructure such as drainage system, roads and plantation of plants as per the instructions given. After this development of the land, he will not do any building constructions and all. He sales only developed land as plots. As Land is the exempted from gst, is he required to get gst registration, if so, will he eligible for ITC on the material purchased on land development, as land is the exempted from land ? What is the provisions/rules under gst, applicable to this kind of business ?

[Himansu Sekhar]

The person develops his land. This is not a supply of service as service cannot be given to self. When they sell it, they sell the land. Why does this question arise?

[Nandan Khambete]

GST will not be attracted in this case.

Dear Mr.Sha, is it advisable to register under GST and claim refund of GST paid on inputs ?

[Himansu Sekhar]

There is no need to register if you do not have any taxable supply. Such situations are also not covered under refund provisions

[tasvir sharma]

Dear All,

we are facing same problem, can you provide any provision/rule/section in GST law.

Regards

Tasvir Sharma

AI Summary

GST on land development: sale of developed plots is exempt so registration and input tax credit not available. The sale of developed plots is treated as a sale of land and is covered by a GST exemption, so GST is not attracted. Land development carried out by the landowner for subsequent sale is not treated as a separate taxable supply to another person. Therefore there is no requirement to register for GST for these transactions, input tax credit on materials used in land development is not available, and refund provisions do not permit recovery of GST on such inputs in the absence of a taxable supply.