GST on sale of industrial gala/shop On MIDC Land

[Ravindra Vyas]

Please help for effective rate of GST on construction and sale of only industrial gala/shop

its two floor industrial complex with 108 units

Thanks & Regards

[CA Hemanth Kumar]

Dear Ravindra Vyas,

Based on the understanding of query, my view will be

1. if it is sale of business as a going concern it would be an exempt supply as per S.No 2 of notification no.12/2017 CT(R)

2. In case if it is a sale of only an industrial building

a. Under construction - taxable at effective 12%

b. Sale after OC - No GST.

[Shilpi Jain]

Agree with Hemanth. Also pls check if there could be any GST liability under RCM on the amounts paid to MIDC.

AI Summary

GST on Industrial Gala Sale: Exempt if Going Concern, 12% if Under Construction, None Post-Occupancy Certificate A query was raised regarding the applicable GST rate on the sale of an industrial gala/shop on MIDC land, specifically a two-floor industrial complex with 108 units. One expert responded that if the sale is considered a business as a going concern, it is exempt from GST according to a specific notification. If it involves the sale of an industrial building, it is taxable at 12% if under construction, but no GST applies if sold after obtaining the Occupancy Certificate (OC). Another expert agreed and suggested checking for any GST liability under the Reverse Charge Mechanism (RCM) for payments to MIDC.