Kanav garg asked 6 years ago
GST ON CHAMBERS OF BAR ASSOCIATION
GST ON CHAMBERS OF BAR ASSOCIATION
A Bar association constituted a Building committee for construction of chambers for advocates as per direction of high court and agreement with the city administration for lease of land in the court complex for the benefit of advocates and liticants and also received advance money for construction from the members of society(advocates) Kindly let me know whether chambers alloted by building committee have any implications of GST and whether decision would vary if society is registered under 12A of the income tax.
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ConsultEase Administrator answered 6 years ago
GST is applicable to every transaction falling under the definition of supply. The supply shall be of goods/services/both. The definition of goods excludes any immovable property. Also, para 5b of schedule II of CGST Act exclude the sale of any building or complex if its first occupation of completion certificate is granted. Schedule III of CGST Act excludes the sale of land and flats or building. We can say that if an immovable property is transferred once its construction is done then it will not be liable for GST. In the current case . When the chambers are constructed and then allocated to the lawyers then it is a transfer of immovable property. Thus, in this case, it will not be liable for GST levy.
Kanav garg answered 6 years ago
Sir you misunderstood the query, actually here we want to know the GST implications on transaction relating to fund collected from advocates for construction of chambers before the first allocation of chambers means chambers are yet to be constructed and society collected amount from members for construction of chambers, Please guide as soon as possible
