Case Law Details
In re Vinod Kumari Goyal (GST AAR Karnataka)
The GST landscape is continually evolving, with new rulings and interpretations emerging to provide clarity on ambiguous topics. A pivotal decision by the GST Authority for Advance Ruling (AAR) Karnataka in the case of Vinod Kumari Goyal has shed light on the applicability of GST on works contract services by landowners for prospective apartment buyers.
1. Applicability of GST on Landowners:
The central issue is whether a landowner, who isn’t executing construction but enters into agreements with buyers for selling apartments before the issuance of a completion certificate, is liable for GST. The ruling emphasized that the landowner, by entering into such agreements, acts as a supplier of works contract services to buyers. As a result, they fall under Section 7(1) of the CGST Act, 2017, making them liable to pay tax under Section 9(1) of the same Act.
2. Tax Rate Determination:
Please become a Premium member. If you are already a Premium member, login here to access the full content.
