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20/06/2020 - Voice of CA presents - Useful Updates
Saturday, June 20, 2020

  I. Headlines Today:   

  1. Companies allowed furnishing GSTR-3B & GSTR-1 through EVC till 30 September, 2020  (Click for detail)
  2. Deductions under Chapter VI A of Income Tax Act: Know how much tax may be saved  (Click for detail)
  3. Who can join Employee Pension Scheme and who can't  (Click for detail)
  4. ICAI: Generation of UDIN in bulk for Certificates  (Click for detail)
  5. Scheme for relaxation of time for filing forms related to creation or modification of charges under the Companies Act, 2013  (Click for detail)

II. GST Update:

1. Shree Dipesh Anilkumar Naik, Advance Ruling No. GUJ/GAAR/R/2020/11, Date of Order:19-05-2020


The applicant has submitted that he is having a vacant land outside the municipal area of town on which he has some proposed business activity. The applicant is having all the necessary approvals for the proposed project from the Plan Passing Authority (i.e. Jilla Panchayat).

2. The applicant has further submitted that as per the Plan Passing Authority, the seller of land is required to develop the primary amenities like Sewerage and drainage line, Water line, Electricity line, Land levelling for road, Pipe line facilities for drinking water, Street lights, Telephone line etc..

3. The applicant further submitted that they will sell the individual plots to different buyers without any construction on the same but by providing the primary amenities as mentioned above, which are mandatory requirement of the approved Plan Passing Authority (i.e. Jilla Panchayat).

4. In view of the above, the applicant has sought for an advance ruling in respect of the following question:

Whether GST is applicable on sale of plot of land for which, as per the requirement of approved by the respective authority (i.e. Jilla Panchayat), Primary amenities such as, Drainage line, Water line, Electricity line, Land levelling etc. are to be provided by the applicant?


The transaction shall be out of GST net only if the activity is exclusively dealing with transfer of title or transfer of ownership of land, which is immoveable property or earth. Selling of Land after developing  the Drainage line, Water line, Electricity line, Land levelling, telephone line etc. as per the requirement of the  Plan Passing authority  is  not covered under clause 5 of schedule III of CGST Act,2017.  Sale of developed plot is not equivalent to sale of land but is a different transaction. Sale of such plotted development tantamount to rendering of service. Hence liable to GST.

This view has also been taken by the Supreme Court in the case of M/s Narne Construction P Ltd. reported at 2013 (29) STR 3 (SC).

(Please click here for Order)

[ Contribution by CA. Vijay Gupta Ji ] 


III. Useful Article:

1.  Article under GST on TRAN-01

(Please click here)  

[ Contribution by CA Madhukar Hiregange]


Golden Rules:

  "Don't look into the past because you have already been there,
focus on the future since that's where you are going"


Thanks & Regards


CA. Sanjay Kumar Agarwal

Founder - Voice of CA 

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