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The amounts received by the applicant, either by himself or through his agents, towards sale of their share of flats are not exigible to GST, if and only if the entire consideration related to such sale of flats is received after the issuance of Completion Certificate

Exemption from GST- The applicant, being an un-registered person, filed the instant application, in relation to the applicability of a notification, determination of liability to pay tax and whether the activity of the applicant amounts to or results in supply. The applicant has sought advance ruling with regard to the exigibility of the amounts to GST, received towards sale of applicant’s share (40%) of residential flats, consequent upon the Joint Development Agreement with developer to construct 74 residential units as per sharing agreement dated 03-01-2018, after the issuance of Occupancy/completion certificate n the instant case the applicant stated that that their share of residential flats have been handed over by the developer after the issuance of completion / occupation certificate dated 26.08.2019 and also clause 1.7 of the Area Sharing Agreement restricts the right of the applicant to execute any sale agreement or any conveyancing deeds till the issuance Of completion certificate and taking over of their share of units / flats. Thus the sale of said flats is not exigible to GST, if and only if they are sold after issuance of Completion / Occupancy certificate, in which case the said transaction is to be treated neither as supply of goods nor supply of services, in terms of clause 5 of Schedule III. Held that- The amounts received by the applicant, either by himself or through his agents, towards sale of their share of flats are not exigible to GST, if and only if the entire consideration related to such sale of flats is received after the issuance of Completion Certificate dated 26.08.2019, as the said activities are treated neither supply of goods nor supply of service in terms of Schedule III of the CGST Act 2017 subject to Clause 5(b) of the Schedule-II of the CGST Act, 2017.