Page 116 - GSTL_16th July 2020_Vol. 38_Part 3

354 GST LAW TIMES [ Vol. 38
tionate basis. In other words, such common amenities, roads, water tank and
other infrastructure is an intrinsic part of the plot allotted to the buyer.
11.2 The above indicates that sale of developed plot is not equivalent to
sale of land but is a different transaction. Sale of such plotted development tan-
tamount to rendering of service. This view has also been taken by the Supreme
Court in the case of M/s. Narne Construction P. Ltd. reported at 2013 (29) S.T.R. 3
(S.C.).
12. In present case, we also find that the applicant is the owner of the
land, who develops the land with an infrastructure such as Drainage line, Water
line, Electricity line, Land levelling etc. as per the requirement of the approved
Plan Passing Authority (i.e. Jilla Panchayat). After this development of the land,
he sales developed land as plots. His sales price includes the cost of the land as
well as the cost of common amenities, Drainage line, Water line, Electricity line,
Land levelling charges, etc. on a proportionate basis.
13. Schedule-II of the CGST Act, 2017 pertains to activities or transac-
tions to be treated as “Supply of goods or supply of services”. As per clause 5(b)
of the Schedule-II of the CGST Act, 2017, construction of a complex, building, civil
structure or a part thereof, including a complex or building intended for sale to a buyer is
a “Supply of service” and, hence, is liable to the Goods and Services Tax (GST).
14. We find that 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, the said activity is covered under ‘construction services’ and GST is paya-
ble on the sale of developed plots in terms of CGST Act/Rules and relevant Noti-
fication issued time to time.
15. In light of the foregoing, we rule as under -
RULING
Ques. 1 : 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, Elec-
tricity line, Land levelling etc. are to be provided by the applicant?
Answer : Answered in the Affirmative, as discussed above.

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2020 (38) G.S.T.L. 354 (A.A.R. - GST - Guj.)
BEFORE THE AUTHORITY FOR ADVANCE RULING UNDER GST,
GUJARAT
Shri Mohit Agrawal and Sanjay Saxena, Members
IN RE : SAWAI MANOHARLAL RATHI
Advance Ruling No. GUJ/GAAR/R/2020/10, dated 19-4-2020
in Application No. Advance Ruling/SGST & CGST/2018/AR/50
GST Registration - Aggregate turnover - Computation of - Interest re-
lated income, i.e., interest received in form of PPF, Savings Bank Scheme and
personal loans and advances to family/friends, exempt from GST under Entry
GST LAW TIMES  16th July 2020  116