Sale of Land

[Sandeep Anand]

Dear Team,

I am writing to inquire about the tax implications of land sales under GST.

We are a manufacturing company and have recently sold some of our land due to the expansion of a highway by the government. I would like to know if the sale of this land is considered an exempted supply under GST.

Additionally, I wanted to clarify if the common Input Tax Credit (ITC) reversal is mandatory for the above sale. I would appreciate it if you could provide me with your expert opinion on this matter.

Thanks & Regards,

Sandeep

AI Summary

Land Sale for Highway Expansion Exempt from GST; Debate on ITC Reversal Under Sections 17(3) and 2(47) of CGST Act A manufacturing company inquired about the Goods and Services Tax (GST) implications of selling land due to government highway expansion. The discussion revealed that the sale of land is not subject to GST as it is neither a supply of goods nor services, according to Schedule III of the CGST Act. However, opinions varied on whether the reversal of common Input Tax Credit (ITC) is required. Some participants argued that the sale should be considered an exempt supply under Section 17(3) of the CGST Act, necessitating ITC reversal, while others disagreed, citing the definition of exempt supply under Section 2(47).