GST Paid By Land Owner Promoters Can Be Claimed on Sale of Land

The Central Board of Indirect Taxes and Customs, as per guidelines and instructions of the Government of India, has notified that the Land Owner Promoters can obtain GST paid to Developers on Sale of Land.

Earlier, on May 28, 2021, a 43rd GST council meeting Smt @nsitharaman will chair the 43rd GST Council meeting via video conferencing at 11 AM in New Delhi on 28th May 2021. The meeting will be attended by MOS Shri @ianuragthakur besides Finance Ministers of States & UTs. Read also was held. In an aforesaid meeting of GST council, the GST Council, by making Explicit provision, has decided to make apt changes and make it clear that landowner promoters could utilize Input Tax Credit of GST charged to them by developer promoters in respect of such apartments that are later on sold by the land promoter and on which GST is levied. The developer promoter shall be permitted to make payment of GST relating to the above-mentioned apartments any time — before or at the time of issuance of the completion certificate.

Consequently, the government of India has issued a  notification that amended the principle notification wherein certain modifications had been made. Following changes have been made:

“In the first paragraph for the following words shall arise on the date of issuance of the completion certificate for the project, where required, by the competent authority or on its first occupation, whichever is earlier”, 

“the words in a tax period not later than the tax period in which the date of issuance of the completion certificate for the project, where required, by the competent authority, or the date of its first occupation, whichever is earlier, falls will be substituted.”