Actual land value should be deducted from total consideration to pay GST on Construction Services
#TaxmannAdvisory #TaxmannResearch #HighCourt #GST #Construction In a much-awaited judgement relating to the taxability of construction contracts, the Gujarat High Court has held that the deduction of land from the total value of a construction contract for discharging GST on construction services using a deemed ratio (i.e., 1/3rd of the total value charged) is violative to the constitutional provisions. The High Court has also held that the sale of developed land under tri-party arrangements by the developer to the ultimate customer cannot be subjected to GST. The judgment is a welcome decision, and it would bring a positive impact on the entire real estate industry. That being said, the Government would likely challenge the judgment before the Apex Court. In the above backdrop, Poonam Harjani, Leader (Indirect Tax), Taxmann’s Advisory & Research Support Services, has recorded a video presentation discussing the impugned judgment. The video inter-alia covers the following: • Discussion of Judgment • Implications on developers and homebuyers • Impact on AAR/AAAR order on the impugned issues • Impact of judgement on other industries where similar deeming fiction is prescribed for valuation (such as EPC contractors in the Solar Power Industry, etc.) Case Name: Munjaal Manishbhai Bhatt vs Union of India Read the (Gujarat) High Court Judgement: https://taxmann.social/e1ZT Citation: [2022] 138 taxmann.com 117 (Gujarat) Dated May 06, 2022 You can reach us at [email protected] in case of any queries. __________________________________________________________________________________________ Bonus: • Get a 7-days free trial for Taxmann.com | Research: https://www.taxmann.com/research • Introducing Taxmann.com | Practice Your virtual legal advisor that helps you understand complex legal concepts and enables you to give instant & best-in-class advice to your clients. This platform delivers complete, updated, accurate, and authentic content in a simple language that is easy to understand. Start your search on any concept of the Law using keywords or section no.: https://www.taxmann.com/practice • All Taxmann Books now come with a 15-Mins Free Trial! Get Started Now! http://taxmann.com/virtualbooks/library _________________________________________________________________________________________ Like our Content? Follow Us for More! • Like us on Facebook: / taxmannindia • Follow us on Twitter: / taxmannindia • Follow us on LinkedIn: / taxmann • Follow us on Instagram: / taxmannindia • Subscribe to Taxmann's Telegram Channel: https://t.me/taxmannprofessionals • Subscribe to Taxmann's Free Newsletter for Tax & Corporate Laws of India: https://www.getrevue.co/profile/taxma... • Introducing the TAXMANN's PODCAST! | Your Hands-free Weekly Update on Everything Tax & Corporate Laws | Listen Now! https://thetaxmannpodcast.buzzsprout.com __________________________________________________________________________________________
