GST on sale of commercial property

[Kaustubh Karandikar]

XYZ(Manufacturer) is registered with GST and is having factory in Navi Mumbai and Head Office in Mumbai. The Head office in Mumbai was an ownership premises which XYZ had sold for ₹ 100 Lakhs. Is XYZ required to pay GST on it?

[SHARAD ANADA]

If sale of property is after completion certificate is neither supply of goods nor supply of services. Pl refer SCH III Para 5 of CGST Act. Transaction of immovable property is neither supply of goods nor a supply of services

AI Summary

Treatment of completed immovable property as neither supply, so sale after completion certificate falls outside GST levy. A sale of a completed immovable commercial property after issuance of a completion certificate is not treated as a supply for GST purposes and therefore does not constitute neither supply of goods nor supply of services; accordingly, sale of an owned, completed premises post completion certificate by a registered entity should be treated as outside the scope of GST levy.