Industry was keenly awaiting the decisions of the
47th GST Council meeting which took place after a long
six-month gap from the previous meet. The response to the GST
Council recommendations has been a mixed one. A much-debated
issue being- Circular No.
177/08/ 2022 dated August 03, 2022
("Circular") which essentially clarified
the 'Taxability on sale of developed plots', amongst
others.
Section 7 of the Central Goods and Services Tax Act, 2017
("CGST Act") defines the scope of
'supply' to encompass 'all forms of supply of goods
or services or both'. However, the said Section carves out
an exception under Schedule III of the CGST Act prescribing the
activities that are neither treated as supply of goods nor services
and kept outside the ambit of GST which
inter-alia includes 'sale of
land'.
