GST is levied on supply of goods and services.
“GOODS’’ means every kind of movable property other than money and securities but includes actionable claim, growing crops, grass and things attached to or forming part of the land which are agreed to be severed before supply or under a contract of supply.
As per the first part of the above, definition of “goods” is wide enough to include every kind of movable property in its ambit except money and securities.
“Movable property” shall mean property of every description, except immovable property.
Thus, to make it simple, goods mean something that is movable. So for it to be goods or to make it taxable under GST Law as goods, it must fulfill the criteria of movability.
Land and buildings are immovable properties and hence cannot be classified as goods. Hence a transaction for sale of land and sale of building shall neither be treated as supply of goods nor a supply of services. Thus, sale of land and building will not be subject to GST.
However Clause b of paragraph 5 of schedule II reads as “construction of a complex, building, civil structure or a part thereof, including a complex or building intended for sale to a buyer, wholly or partly, except where the entire consideration has been received after issuance of completion certificate, where required, by the competent authority or after its first occupation, whichever is earlier”.
Now it is quite clear that sale of land will not attract GST and sale of building after obtaining completion certificate or after its first occupation will not attract GST.
If any consideration for sale of building, complex, civil structure or a part thereof is received, before its first occupation or before issuance of completion certificate therein, the entire consideration for such sale shall be liable to tax under GST, as a supply of service.