GST ON Plotted Development with amenities

[Asked by Guest]

Dear Experts,

If a Person deals with development of Residential Layout which has the basic amenities like drainage,Park,water Supply etc and he is also Constructing the buildings for Gym,Club house,Community hall,Pool etc as Special ameneties. What is the GST applicable in this Senerio and is there any GST on the Land we Purchase from him.

[HNA CharteredAccountants]

1. Sale of land is treated as neither supply of goods not supply of service as per the Schedule - III of the GST Act 2017 thereby GST will not attract. It is immaterial whether such land is sold in a community having amenities or otherwise.

2. In case there is development charges being collected for the development and amenities over above the consideration for land - it will be subject to GST at 18%

Regards

Sudhir V S

[email protected]

[HariKishan Bhonagiri]

Can he get development with out purchase of land. In my view part and parcel of land. It is a composite, it can't be mixed supply.

AI Summary

GST on development charges: levied where development fees are charged separately from land; standalone land sale not taxable.
Sale of land is treated as neither a supply of goods nor a supply of services under Schedule III and is not subject to GST; however, development charges collected separately as consideration for provision of amenities are taxable supplies and attract GST, whereas an alternative view contends that development may be part of a composite supply with the land and thus requires factual and contractual analysis.