Q. 427 Party A is an owner of the Land. He appointed B to sell his land by passing Power of attorney. B is the holder of power of attorney he sold the land to C for a consideration of rupees 1000 out of which B paid rupees 550 to land owner (A). Rs.450 was retained by B (attorney) out of rupees 1000. As explained in Sr no. 5 of schedule III of the central Goods and service tax Act,2017, Land sale will not be coming under the purview of GST and based on above facts of the case, Wheather below transactions are taxable under GST. If so, under which head the same will be taxed: a. Transaction between A & B (value of RS.550) b. Transaction between B & c ( Value of Rs.450) c. Transaction between A & c ( No monitory transaction; only registration from A to C transfered) If it is not taxable for any of the above transaction then mention the reason ?

Ans. “Sale of land and, subject to clause (b) of paragraph 5 of Schedule II, sale of building” is the transaction which shall be treated neither as a supply of goods nor a supply of services under schedule III. In the nature of sale of land, since transaction involving principal-to-principal basis is covered under schedule III under GST act, therefore GST will not be levied. Also, GST will not be levied on the income portion received.

Q. 426 What is HSN code for Erection and painting of Machinery ?

Ans. In the case of construction services, you may use SAC code 9954 and in other cases, the HSN will depend upon the nature and description of the machinery.

Q. 425 In case of free samples, E way bill is generated by putting Zero in quantity and Value. Putting “Zero” in Value is correct but what is the logic behind putting “Zero” in quantity as we have actually sent the goods ?

Ans. In the above case you can analyse the same through the case laws, FAQs and case scenarios given on the Taxo portal. You are required to visit the following link given below: https://taxo.online/case-law/cl-section-68/ https://taxo.online/faq/section-68-inspection-of-goods-in-movement/ https://taxo.online/case-scenario/cs-section-68/