Sale of windmill

[Padmanathan KV]

Is sale of windmill liable to GST?

No doubt windmill is an immovable property but...

Context:-

1. Goods means "every kind of movable property.."

2. services means "anything other than goods,.."

3. Immovable property General Clauses Act - "shall include land,...." (thus, it is clear that land is only one specie where as immovable property is genus)

4. Schedule III entry 5 - "sale of land, subject to... sale of building".

Whether immovable properties other than land and building are taxable as "service"?

AI Summary

Taxability of windmill as goods affects GST treatment when sold with land, determining composite or mixed supply.
Whether a windmill attracts GST depends on classification: as goods if movable plant and machinery, or as immovable property when sold with land. Tax treatment of combined sales hinges on whether the windmill is principal or ancillary to land, whether the supply is composite or mixed, and the parties' contractual terms and intentions. Conflicting precedents and the inclusive definition of goods mean a single-consideration sale with land risks GST on the entire consideration; consider Advance Ruling and assess income-tax implications where a going concern treatment is argued.