Sale of land

[Prudhvi Jakkula]

Dear experts,

A sold land to B. Consideration for the same will be paid by B in 2 forms

a) Partly in cash

b) For remaining amount instead of paying cash, B offers some flats to A.

Now the problem is if B paid entire amount in cash, the transaction will not attract GST because of scheduleIII. If he offers flats it will become JDA.

As he is paying partly in cash and partly by flats, what will be the GST Implications?

Please solve my query.

[Ganeshan Kalyani]

Ready made flats do not attract GST. Only under construction flats attract GST. So if B offer A some already constructed flats then no GST is applicable.

[HariKishan Bhonagiri]

The problem is to be analysed in to two supplies

land supply made to B i.e supply of land by A to B. This is sale of immovable property. it is immaterial whether he is received in cash or kind or any other mode. It is neither supply of goods nor supply of services as per Schedule III of GST Act.the valuation in registration act is not to be considered here.

Flat supplied to A.i.e supply of flat by B to A: This is supply of service ( flat under construction ) or sale of flat depend upon the facts of the case. which were not provided. If it is under construction flat then it is a service B has to discharge the GST as per valuation rules. If it is flat falls under Schedule III then no GST

AI Summary

Treatment of land sale under Schedule III: non-taxable, while under-construction flats given as consideration are taxable under GST valuation rules.
Sale of land by A to B is not a taxable supply under Schedule III regardless of mode of consideration; where consideration includes flats, treat the transaction as two supplies: the land transfer (non-taxable) and the supply of flats by B to A, with ready-made flats not attracting GST and under-construction flats treated as taxable services subject to GST valuation rules.