In re Natikeri Amritha Krishnam (GST AAR Karnataka)
Summary: Shri/Smt. Natikeri Amritha Krishnam, an unregistered person, filed an application for advance ruling concerning the GST implications of developing land and subsequently subdividing it into residential plots for sale. The Applicant stated that she was the owner of the land proposed to be developed and had entrusted development activities, including installation of electricity poles, provision of water supply connections and formation of roads, to a registered contractor. The Applicant further submitted that GST at the applicable rate of 18% was paid on the consideration charged by the contractor for the works contract services. Upon completion of the development activities, the Applicant proposed to subdivide the land into four to five residential plots and sell the developed plots to prospective purchasers.
The Applicant sought a ruling on whether the transaction would come within the purview of the GST Act, 2017 as taxable services and goods and, if taxable, the applicable rate. The Authority observed that the question had not been framed with sufficient clarity but, having regard to the submissions, understood the Applicant to be seeking a ruling on the applicability of GST to the sale of developed land after activities such as land levelling, formation of roads, and laying of water supply and sewage lines.
