Frequently Asked Questions

Whether real estate will be taxed under GST?

Supply of real estate (land, buildings and civil structures) are generally immovable and are subject to levy of stamp duty which has not been subsumed in GST.
Schedule II of the CGST Act, 2017 excludes land and buildings except those that are supplied before completion or first occupation from the ambit of supply of services. Apart from this sale of land and buildings has been listed as one of the transactions that will be treated as neither a supply of goods nor of service under Schedule III of the CGST Act.

However ‘sale of land and buildings’ have been included in the scope of exempt supplies while determining pro rata reversal of input tax credits used for making both taxable and exempt supplies.

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