Page 127 - GSTL_14th May 2020_Vol 36_Part 2

2020 ] IN RE : SATYAJA INFRATECH 229
der name of “Bliss Homes” with basic facilities prescribed is liable
to GST or not?
(2) If the same is liable for GST then under which category of supply it
will fall and what will be the rate of GST on it?
3. The Applicant has further submitted that
(1) It is to be noted that the firm, who purchases land and it develops
the land with an infrastructure such as drainage system, roads and
plantation of plants as mentioned above. After this development of
the land, it will not do any building constructions and all. It sales
only developed land as plots.
(2) As per Applicant interpretation under CGST Act, it is considered as
sale of land and the same is not supply of goods/services as stated
in Schedule-III para 5. Hence, the sale of land is not taxable under
GST law.
4. The activities or transactions which shall be treated neither as a sup-
ply of goods nor a supply of services are prescribed in Schedule III of CGST Act.
In this Schedule, at Serial No. 5, the following details are mentioned :
“5. Sale of land and, subject to clause (b) of paragraph 5 of Schedule II,
sale of building”
Clause (b) of paragraph 5 of Schedule II says as follows
(b) Construction of a complex, building, civil structure or a
part thereof, including a complex or building intended for sale to a
buyer, wholly or partly, except where the entire consideration has
been received after issuance of completion certificate, where required,
by the competent authority or after its first occupation, whichever is
earlier.
Explanation. - for the purposes of this clause -
(1) the expression “competent authority” means the Government
or any authority authorised to issue completion certificate un-
der any law for the time being in force and in case of non-
requirement of such certificate from such authority, from any
of the following, namely :-
(i) an architect registered with the Council of Architecture
constituted under the Architects Act, 1972; or
(ii) a chartered engineer registered with the Institution of
Engineers (India); or
(iii) a licensed surveyor of the respective local body of the
city or town or village or development or planning au-
thority;
(2) the expression “construction” includes additions, alterations,
replacements or remodelling of any existing civil structure;…..
5. We have considered the submissions made by the applicant in their
application for advance ruling.
6. The issue involved in this case is regarding appropriate rate of
Goods and Services Tax applicable on the services provided by the applicant.
7. Following para in sale deed is as follows.

GST LAW TIMES  14th May 2020  127