How to Determine GST Taxable value of Immovable Property where Sale Consideration is less than Stamp Duty Value: AAR Answers

The applicant has sought clarification in the matter of  Determination of the taxable value under GST Act, 2017 of Immovable Constructed Commercial Property without any occupancy or Completion Certificate where the area of the land exceeds 500 square meters or the number of apartments proposed to be developed exceeds 8 inclusive of all phases particularly when the actual Guidance value fixed by the Competent Government Authority is more than the Value of Sale Consideration stated in the absolute Sale Deed registered by the Builder in favor of the Purchaser.

Advance Ruling

The taxable value under the GST Act of construction of immovable plots without occupancy certificate needs to be determined as per the transaction value and such value if found to be not acceptable, has to be determined as per the principles laid down under Section 15 of the GST Act, 2017

GST Act contemplates to treat the transaction value as the value of supply unless the same is rejected and the value determined as per Section 15 of the GST Act. It does not contemplate to consider a guidance value prescribed under another legislation to be deemed to be the value of the supply, unless the transaction value itself is disputed and found not acceptable under Section 15 of the GST Act. In the latter case, the determination of the value of such supply shall be made as per the provisions of Section 15 of the CGST Act.

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