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?

AI Summary

GST Not Applicable on Sale of Immovable Property Post-Completion Certificate as per CGST Act Schedule III, Paragraph 5. A manufacturer, registered under GST with operations in Navi Mumbai and a head office in Mumbai, sold its Mumbai head office property for 100 Lakhs. A query was raised regarding the applicability of GST on this sale. The response clarified that if the sale occurs after the issuance of a completion certificate, it is neither considered a supply of goods nor a supply of services under Schedule III, Paragraph 5 of the CGST Act, and thus, GST is not applicable on the transaction of immovable property.