Universal Industrial Park, In re

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The Tax Publishers 2023 TaxPub(GST) 66 (AAR-Guj) : (2023) 109 ITPJ (G) 0689 IN THE AUTHORITY FOR ADVANCE RULING, GUJARAT MILIND KAVATKAR AND AMIT KUMAR MISHRA, MEMBER In re Universal Industrial Park, GUJ/GAAR/R/2022/53 30 December, 2022 Applicant by: Kaushik Nahar (CS) ORDER Universal Industrial Park (herein after referred to as the applicant) is a partnership firm and not registered with GST. The Applicant has purchased land located at Survey No.105 (Old Survey No. 38/P3) 2. The Applicant has submitted that it may sale the whole plot on as is where is basis or alternatively it will convert the land into plots of different sizes and then sale the individual plots. They intends to provide basic facilities such as road, boundaries etc. 3. The Applicant submits that the activity undertaken by them is sale of land and is exempt from GST as per Entry No.5 of Schedule III of CGST Act. The activity of sale of land is neither supply of Goods nor supply of services. Hence the activity of sale of land is not covered under the definition of Supply as per Section 7 of the CGST Act, 2017. 4. The applicant has placed reliance on the 47th GST Council press release in which at point No.12 the following is clarified: 12. Sale of land after leveling, laying lawn of drainage lines etc. is sale of land and does not attract GST. 3. The applicant has submitted that CBIC in Point No. 14 of Circular No.177/09/2022-TRU dated 3-8-2022 has clarified as under : 14. Whether sale of land after levelling, laying down of drainage lines etc is taxable under GST. 14.1 Representation has been received requesting for clarification regarding applicability of GST on sale of land after levelling, laying down of drainage lines etc. 14.2 As per Sl no. (5) of Schedule III of the Central Goods and Services Tax Act, 2017. sale of land is neither a supply of goods nor a supply of services, therefore, sale of land does not attract GST. 14.3 Land may be sold either as it is or after some development such as levelling, laying down of drainage lines, water lines, electricity lines, etc. It is clarified that sale of such developed land is also sale of land and is covered by Sr. No. 5 of Schedule III of the Central Goods and Services Tax Act, 2017 and accordingly does not attract GST. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers 2023 TaxPub(GST) 66 (AAR-Guj) : (2023) 109 ITPJ (G) 0689

IN THE AUTHORITY FOR ADVANCE RULING, GUJARAT

MILIND KAVATKAR AND AMIT KUMAR MISHRA, MEMBER

In re Universal Industrial Park,

GUJ/GAAR/R/2022/53

30 December, 2022

Applicant by: Kaushik Nahar (CS)

ORDER

Universal Industrial Park (herein after referred to as the applicant) is a partnership firm and not registered with GST. The Applicant has purchased land located at Survey No.105 (Old Survey No. 38/P3)

2. The Applicant has submitted that it may sale the whole plot on as is where is basis or alternatively it will convert the land into plots of different sizes and then sale the individual plots. They intends to provide basic facilities such as road, boundaries etc. 3. The Applicant submits that the activity undertaken by them is sale of land and is exempt from GST as per Entry No.5 of Schedule III of CGST Act.

The activity of sale of land is neither supply of Goods nor supply of services. Hence the activity of sale of land is not covered under the definition of Supply as per Section 7 of the CGST Act, 2017.

4. The applicant has placed reliance on the 47th GST Council press release in which at point No.12 the following is clarified:

12. Sale of land after leveling, laying lawn of drainage lines etc. is sale of land and does not attract GST.

3. The applicant has submitted that CBIC in Point No. 14 of Circular No.177/09/2022-TRU dated 3-8-2022 has clarified as under :

14. Whether sale of land after levelling, laying down of drainage lines etc is taxable under GST.

14.1 Representation has been received requesting for clarification regarding applicability of GST on sale of land after levelling, laying down of drainage lines etc.

14.2 As per Sl no. (5) of Schedule III of the Central Goods and Services Tax Act, 2017. sale of land is neither a supply of goods nor a supply of services, therefore, sale of land does not attract GST.

14.3 Land may be sold either as it is or after some development such as levelling, laying down of drainage lines, water lines, electricity lines, etc. It is clarified that sale of such developed land is also sale of land and is covered by Sr. No. 5 of Schedule III of the Central Goods and Services Tax Act, 2017 and accordingly does not attract GST.