However, on reading of Para 5(b) of Schedule II and Para 5 of Schedule III of GST Act the transaction of Sale of Land or Building where the entire consideration has been received after issuance of completion certificate, by the competent authority or after its first occupation shall not be treated as a supply of goods or services
As per section 17(3) of CGST Act, Proportionate reversal of ITC where a person is making both exempt and taxable supply, as per explanation introduced in CGST (amendment) Act, 2018 w.e.f 1-1-2019, value of exempt supply includes value of sale of land and sale of completed building.
GST can be levied on the following transactions,
It is also noted that no GST is leviable on supply of undivided share of land as part of composite supply of apartments. Sale of developed plots by including development cost in sale value is not taxable under GST if no advance is received because the principal supply is the sale of land.
GST is a complex tax regime, and the rules and regulations regarding its application to real estate can be subject to change. It's advisable to consult a trusted tax professional like Bbig Consultants for specific advice regarding GST on real estate transactions.