Sale of Land - Basis of reporting in GSTR1 as exempted

[Balaji Srinivasamurthy]

Dear experts,

Section 15 of CGST Act states as below:

15. (1) The value of a supply of goods or services or both shall be the transaction value, which is the price actually paid or payable for the said supply of goods or services or both where the supplier and the recipient of the supply are not related and the price is the sole consideration for the supply.

With the above being quoted, which value needs to be reported in GSTR-1 as 'exempted' - Guideline value or Market value for sale of land?

Regards

Balaji

[Balaji Srinivasamurthy]

I understand Sl.No.5 of Sch-III of CGST Act states as below:

5. Sale of land and, subject to clause (b) of paragraph 5 of Schedule II, sale of building

However, if the value of sale gets reported in 26AS/ AIS from the buyer in Income Tax, it becomes obligatory to the seller to report in GST, as well for matching both the revenues.

If this sale had to reported as exempted in this case, I have raised this query to understand on what basis it needs to be reported in GSTR1 as exempted - guideline value (considered for stamp duty and registration fees) or market value (for which buyer compensates to the seller)

AI Summary

Sale of land reporting in GSTR-1 raises the issue of guideline value versus market value for exempt disclosure. Sale of land is treated as outside the taxable supply framework under Schedule III of the CGST Act, and the issue is the basis for reporting it in GSTR-1 as exempted. The query asks whether the disclosure should be made on the guideline value used for stamp duty and registration or on the market value actually paid by the buyer to the seller. It also notes a concern that Income-tax reporting through AIS or Form 26AS may lead to corresponding disclosure in GST for revenue matching.