Do we need to pay GST when we purchase a developed plot with all amenities?

No GST is payable on purchase of a developed plot. Purchasing a developed plot is nothing but land that falls in Schedule-III of CGST Act, 2017. Schedule-III to GST Act,2017 says that the 8 kinds of supplies activities or transactions mentioned under the said Schedule are treated neither as a supply of Goods nor a supply of services. Sale of land mentioned at Sl.No 5 of the Schedule, is therefore is neither supply of goods nor supply of services and would go out of GST purview.

Therefore no GST is payable on the purchase of a developed plot as per GST law in India.

Central Board of Indirect Taxes and Customs, an apex body on indirect taxes administration (CBIC) has also clarified at para 14.3 of Circular No.177/09/2022-TRU dt 3.8.2022 that developed land is also land covered under Serial No. 5 of Schedule-III of CGST Act 2017 and so sale of land doesn't attract GST. Schedule-III is about supplies to be treated under law as neither supplies of goods nor

However, coming to the developer of plots in real estate Sector, GST is payable by the service provider who agreed and developed the plots by laying roads,constructing water tanks, developing parks, electricity poles, drainage system etc as required by the developer. Services provider would collect GST from the real estate developer and pay the tax to the Government.