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GST on amount forfeited on account of breach of agreement of sale of land
Case Law Details
- Case Name
- In re Fastrack Deal Comm Pvt. Ltd. (GST AAR Gujarat)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Courts
- AAR Gujarat, Advance Rulings
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In re Fastrack Deal Comm Pvt. Ltd. (GST AAR Gujarat)
The main issue is here to decide whether the amount forfeited on account of breach of agreement of sale of land is liable to GST or not.
The applicant contention is that the amount of Rs. 20 lacs forfeited is on account of sale of land and as per Schedule III of CGST Act, 2017, sale of land is an activity or transaction, which is treated as, neither supply of goods nor service. Therefore, they have claimed that such transaction is not liable to GST.
As per Section 7(1) of the CGST Act, 2017, activities referred to in Schedul...
Absurdity has its limitations except in cases of taxation. GST is no exception. In a transaction where no GST applies, to hold that forfeited amount is taxable for GST is absurd indeed. With all the distortions in reading any tax law can only result in unlimited litigation. So will it be in the current one. Floodgates of litigation.