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Land leasing, renting to attract GST from July 1

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Come July 1, leasing of land, renting of buildings as well as equated monthly instalments (EMIs) paid for purchase of underconstruction houses will start attracting the goods and services tax (GST). Sale of land and buildings will be, however, out of the purview of the GST. Such transactions will continue to attract stamp duty, according to the legislations Finance Minister Arun Jaitley introduced in the Lok Sabha on Monday.
Electricity has also been kept out of the GST´s ambit.
The GST, which the government intends to roll out from July 1, will subsume central excise, service tax and state valueadded tax among other indirect levies on manufactured goods and services.
The Central GST (CGST) Bill —one of the four legislations introduced —states that any lease, tenancy, easement or licence to occupy land will be considered as supply of service.
Also, any lease or letting out of buildings, includingacommercial, industrial or residential complex, for business or commerce, either wholly or partly, isasupply of services according to the CGST Bill. The GST Bills provide that sale of land and sale of building except the sale of underconstruction buildings, will nether be treated asasupply of goods notasupply of services.
Thus GST can´t be levied in those supplies.
Business Standard New Delhi,29th March 2017

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