Ques: X ( Private Limited Company ) bought a piece of land from Y, ( Private Limited Company ) through registered conveyance deed. Consideration agreed in the form of Rs. xxxxx and Allotment of Flats ( Designated Area ) in the said land to Y.
1. Whether GST is payable on the allotment of designated area (Flats) given to Y as a consideration for the conveyance of the Land.
2. If GST is applicable on the said transaction, what will be the time / due date to discharge the GST Liability.
3. Yesterday, Taxo published Article in its portal regarding the case law of- In the High Court of Judicature at Bombay nagpur bench at Nagpu, writ petition No. 7135 of 2024- M/s Shrinivasa Realcon Private Limited vs. Deputy Commissioner Anti Evasion Branch, CGST & Central Excise Nagpur & Others- That GST is not applicable on the FSI Transfer
Weather the said case law applicable in our case also, and GST is not applicable in our case.

Ans: In case we are paying stamp duty for purchase of land then that activity will be outside GST ambit. At the same time if consideration is given in kind then as barter system the taxability of flats so given will be there at the time of consideration received I.e on acquisition of land itself. Rate of tax will be 5% without ITC benefit.

Ques: IS THE AMMENDMENT DONE TO THE RULE 88B ON (IN THE 53 COUNCIL MEETING) CHANGING THE METHOD OF CALCULATION OF INTEREST ION DELAYED PAYMENTS IS WITH RESTROSPECTIVE EFFECT ?

Ans: Rule 88B is applicable with retrospective effect from 01.07.2017.

Ques: Against a non payment of Rs 500/_ under RCM. penalty of Rs 10,000 Cgst and Rs 10,000 has been levied.My question is penalty under sec 122 is mandatory in nature .Can it be represented that amt payable under RCM being Rs 500/- only , a general penalty u/s 125,126 to be levied looking into the facts and circumstances of the case. Rs 20,000/- unreasonable.Any case laws better grounds to put forward in appeal against DRC 07.pl guide.

Ans: In such cases, since penalty under Section 73 of CGST Act is mandatory, you cannot seek levy of penalty under Section 125 instead. However, you may avail the benefit of reduced penalty as per Section 73 of CGST Act which provides that if tax & interest is paid before SCN or within 30 days of service of SCN, penalty automatically reduces to 0 under Section 73 of CGST Act.