GST on Plot development

[Guest]

Hi Experts,

I have bought a plot through loan along with plot development loan.

• what is the GST for Plot development loan?
• Can i build a house on that plot as i have development loan on my name?

Thanks in advance

Gowrishankar

[KASTURI SETHI]

On loan GST is not applicable. Yes. You can build a house on that plot.

[DR.MARIAPPAN GOVINDARAJAN]

I endorse the views of Shri Sethi

[Guest]

Highly appreciate your response Kasturi sir and Mariappan sir.

Can you please share any document or link on the same, as i needed in a document format.

Thank you

Gowrishankar

[KASTURI SETHI]

See Serial No.27(a) of Notification no.12/17- Central Rate dated 28.6.17. This notification exempts service if if loan, deposit, interest etc. This is available on internet or CBEC's Website.

AI Summary

GST exemption on loans: plot development loans not subject to GST, building permitted under central exemption notification GST is not leviable on financial accommodation provided as loans, including loans for plot development, and a borrower with such a development loan may construct a house on the plot. The exemption is linked to the central notification exempting services of loan, deposit and interest, identified in the document as Serial No.27(a) of Notification No.12/17-Central Rate.