GST on Layout

[Ethirajan Parthasarathy]

GST Council in its 47th meeting issued a clarification as follows:-

"Sale of land after leveling, laying down of drainage lines etc., is sale of land and does not attract GST"

To my knowledge till now no such clarification has been issued.

Can we take a stand in an ongoing proceedings based on above decision of GST council, that notice is payable on sale of developed plots after completion of related infrastructure. Please clarify.

AI Summary

GST exemption for developed land may be persuasive now, but formal notification or circular is required for statutory effect.
A GST Council press release states that sale of land after basic development (leveling, drainage) is not subject to GST, but the press release has no statutory force; formal relief requires a government exemption notification or circular, which will operate only as worded and is generally prospective unless expressly made retrospective. The press release may be used defensively but is less authoritative than an official circular, and the precise scope of permissible development works remains uncertain.