Case Law Details
In re Bhopal Smart City Development Corporation Ltd (GST AAR Madhya Pradesh)
Q1) whether GST is applicable on sale of developed plot of land for which consideration is received before the issuance of completion certificate ( if any), under the following facts:-
a. The sale of plot is after carrying out the development activities oi providing amenities such as Drainage line, water line, electricity line, land levelling, and common facilities viz road and street light etc. which are to be provided by the applicant; and
b. remaining construction activities including civil foundation on the developed plot will be carried out by the buyer on their own account and cost.
Ans: Regarding applicability of GST on sale of developed land (the applicant has declared that no completion certificate is required for the project) for the reasons stated above, it is ruled that the sale of developed land, by the applicant as per the facts provided by him where the development work is limited to providing common amenities ( common drainage, water line, electricity line, land levelling, road and street light) and no development work will be done by the applicant after the sale of the developed land and if no advance from the customer for undertaking development activities is taken then it does not constitute a supply within the meaning of Section 7 of the GST Laws and therefore GST is not applicable on such sale.
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