GST REGISTARTION FOR PERSON DOING BUSINESS IN EXCLUSIVELY OF PLOTTED DEVELOPMENT

[NUKALA KUMAR]

WHETHER THE PERSON IS LIABLE FOR MANDATORY REGISTARION AS AGGREGATE TURN OVER EXCEEDING 20 LAKHS,

PERSON IS INTO EXCLUSIVELY SALE OF DEVELOPED PLOTS TO CUSTOMERS ON HIS OWN LAND,THERE IS NO JDA.

INCOME RECIVED FROM SALE OF DEVELOPED PLOTS IS 20 CRORE

WHETHER PERSON IS LIABLE FOR  MANDATORY GST REGISTRATION?

[Sadanand Bulbule]

Plz refer Section 23 of the CGST Act, 2017:

23. (1) The following persons shall not be liable to registration, namely:––

(a) any person engaged exclusively in the business of supplying goods or services or both that are not liable to tax or wholly exempt from tax under this Act or under the Integrated Goods and Services Tax Act;

Sale of developed plots, being sale of land, is neither supply of goods nor service in terms of Sl No. 5 of the Third Schedule to the Act.  Therefore you are not liable for registration.

[Sadanand Bulbule]

2023 (2) TMI 929 - APPELLATE AUTHORITY FOR ADVANCE RULING, KARNATAKA - IN RE: M/S. MS. RABIA KHANUM,

Levy of GST - consideration received on sale of sites - advance received towards sale of site - sale of plots after completion of works related to basic necessities - rate of GST - on what value GST to be charged? - If GST is chargeable on any of these transactions, can the applicant collect the GST from the prospective buyers? - eligibility for claiming Input Tax Credit that are paid on the expenses they incur on development.

HELD THAT:- he transfer of title in the land/plot cannot take place before the land is developed with the required infrastructure and amenities, as the Planning Authority, in terms of Section 17 of the KTCPA (reproduced in Para 15 ante), will not issue the layout plan unless the development is complete. Further, without the layout plan issued by the Planning Authority, the local authority will not issue the Khata for the plot and in the absence of the Khata, the registration process for transfer of title from the seller to the buyer will not take place. On a co-joint reading of all the provisions, it is held that sale of land developed by the Respondent is covered within the scope of the term "sale of land" as mentioned in entry 5 of Schedule III.

No.- KAR/AAAR /02/2023

Dated.- February 14, 2023

[Sadanand Bulbule]

Dear all

Plz refer the ratio of following judgement which squarely applies to the sale of land, developed plots or undeveloped land,  vide Sl. No. 5 of the Third Schedule to the CGST Act, 2017. So in my considered view, there is no ambiguity on this issue.

2025 (4) TMI 750 - KARNATAKA HIGH COURT - M/S. FORTIOUS INFRADEVELOPERS LLP VERSUS THE ADDITIONAL COMMISSIONER OF COMMERCIAL TAXES (ZONE) -1, BANGALORE, THE ASSISTANT COMMISSIONER OF COMMERCIAL TAXES (AUDIT) -1. 1, BENGALURU, THE UNDER SECRETARY FINANCE DEPARTMENT (C. T-1), BENGALURU.

Conclusion - i) VAT cannot be levied on immovable property. ii) Finalized assessments under the Karasamadhana Scheme cannot be reopened.

The questions of law framed in these appeals, are answered in favour of the Assessee and against the Revenue.

No.- STA No. 18 of 2022 C/W STA No. 19 of 2022 STA No. 20 of 2022

Dated.- April 2, 2025

[Shilpi Jain]

Not required to register as there is no GST liability, irrespective of the quantum of T/o

AI Summary

Sale of land classification removes GST registration requirement for exclusive plot developers where transactions are non-taxable. Sale of developed plots is treated as 'sale of land' under Schedule III, Entry 5 and therefore constitutes a non-taxable supply for GST purposes; Section 23 of the CGST Act excludes persons engaged exclusively in non-taxable or wholly exempt supplies from mandatory registration, so an exclusive plot seller whose receipts derive from such land sales is not required to register for GST. Relevant advance ruling and subsequent case authority have been invoked to support this classification and the consequent absence of GST liability.