Yes, it depends on the agreement reached with the buyer, if you have not deducted GST from the sale of land with amenities, the question of payment of GST does not arise, unless there is opposition of examination. The AAR decided that the GST should be paid by treating the same as a “service”, based on the relationship between the Supreme Court decision.4 The underlying assumption was entirely justified when it found that, in the present case, the applicant`s activities, which included the offering of land for sale to its customers/members, with the assurance of infrastructure/facility development, layout permits, etc., constituted and would be regarded as a supply. 1. Technically, the two values are the same. Pay GST on the value of the selling instrument. As a result, with conceptual clarity, they have plunged GST taxation on real estate-related issues raises only a few other issues, including fiscal capacity, which is becoming critical. There is no need to enter into a separate agreement, as the law itself states that the GST does not apply to the value of the land and only to the value of the construction of the property. At the time of the preparation of the tax invoice, if the contracting authority takes into account the total value of the property, the tax is 18% of the 2/3 value of the property. In the case of GST, the value of the land is 1/3 of the value of the property, so the effective rate is 12%. There are solutions to avoid this problem.
To avoid an unwanted tax liability, consult us before concluding sales contracts. We advise you competently and advise you on how to structure your sale to avoid this type of trap. If not, you could be credited with an unwanted tax bill.. . .