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

Input tax credit reversal required where sale of land is included in the value of exempt supply for GST ITC rules.
The key operative point is that, although sale of land is treated under Schedule III as neither goods nor services, GST ITC provisions and their explanatory rules include sale of land in the computation of the value of exempt supply for purposes of ITC reversal, with valuation guided by stamp duty figures; accordingly, common input tax credit allocable to such sales must be reversed through the statutory returns/reversal mechanism.