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.

AI Summary

GST Implications on Land Sale: No GST on Land, Applies to Under-Construction Flats per Schedule III of GST Act. A query was raised regarding the GST implications on a land sale where the buyer, B, pays partly in cash and partly with flats to the seller, A. The concern was whether this transaction would attract GST. One expert clarified that ready-made flats do not attract GST, while under-construction flats do. Another expert explained that the sale of land is not subject to GST as it is considered an immovable property transaction under Schedule III of the GST Act. However, if the flats are under construction, they are considered a supply of service, and GST would apply accordingly.