Clause 5 of Schedule III of CGST Act, 2017
GST will not be applicable where residential plots are sold as per clause 5 of Schedule III of CGST Act, 2017. Plots are generally sold by developing basic amenities or facilities like common roads, compound wall, drainage system, club house etc. Where any extra development charges are collected for such amenities or facilities then as per the GST Rules for Residential Plot Sales, GST @ 18% will be applicable on such extra development charges.
In the case where the amount collected is only towards sale of plot and no additional charges are collected, there shall be no GST applicable on such amount collected for sale of residential plots.