GST on Plotted Development has been a contentious issue. I am glad to inform that I had an opportunity to appear before the Advance Ruling Authority of Karnataka and get some clarity on this subject .
In my view, the sale of plot on non levy of GST on sale of plots irrespective of whether the plots are booked before / after the issuance of Release Order (akin to completion certificate in case of construction of apartments).
Few of the my contentions were accepted by the ARA. A short summary of the Advance Ruling is tabulated below-
​Amounts collected from customers | Issuance of Release Order | After Issuance of Release Order |
Sale of Plots | Not liable to GST | Not liable to GST |
Basic Infrastructure Development Charges | Not liable to GST | Not liable to GST |
Other Common Amenities and Facility Charges | Liable to GST | Liable to GST |
The ruling can be downloaded here
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