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 sale of industrial property: going concern sales exempt; under construction units taxable; check reverse charge.
If the transaction is a sale of business as a going concern, it is an exempt supply. A sale of an industrial building is taxable when under construction at an effective 12% rate, while sale after issuance of the occupancy certificate is not subject to GST. Potential reverse charge mechanism liability on amounts paid to MIDC should also be examined.