GST applicable on purchase of plots Now

According to the Gujarat AAR, the activity of the sale of ‘developed’ plots would be covered under the clause ‘construction of a complex intended for sale to a buyer’.

Thus, it says that the sale of the developed plot is covered under ‘construction services’ and GST should be payable on sale of such plots.

It is to be noted that sale of land has been kept outside the ambit of GST, and the buyer of a plot of land has to pay only registration charges.

However, after this judgment by the Gujarat AAR, a buyer will have to pay both GST and registration charges.

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