Clarification in relation to GST rate on Services – Sale of Land

The sale of immovable property, including land, is generally considered as a transaction outside the purview of GST. However, there has been some confusion regarding the applicability of GST on the services related to the sale of land, such as brokerage, legal fees, and stamp duty.

Earlier, the GST Council had clarified that services related to the sale of land, including brokerage and legal fees, are exempted from GST. However, there was still some confusion regarding the applicability of GST on the stamp duty payable on the sale of land.

Recently, the GST Council has provided further clarification regarding the GST rate on services related to the sale of land, including the stamp duty payable on such transactions. As per the latest clarification, the stamp duty payable on the sale of land is also exempted from GST.

This clarification is in line with the earlier decision of the GST Council to exempt services related to the sale of land from GST. It is important to note that this exemption is applicable only to services related to the sale of land and not on the sale of land itself.

Therefore, if you are a small or medium-sized business owner or a startup founder who deals with the sale of land, you should be aware of these clarifications to ensure that you are complying with the GST regulations.

In conclusion, the GST Council has provided further clarification regarding the GST rate on services related to the sale of land, including the stamp duty payable on such transactions. This clarification is in line with the earlier decision of the GST Council to exempt services related to the sale of land from GST. If you deal with the sale of land, it is important to be aware of these clarifications to ensure that you are complying with the GST regulations.