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Question ID : 36892

Taxability of renting of vaccant lant

As per chapter 4 and heading 9986 renting of agro machinery or vaccant land with or without structure incidental to its use attracts nil rate of tax.whether renting of vaccant land of about 1 acre for vehicle parking will come under that

Posted by nagappan.sm on Dec 17, 2018

Filed Under GST

Answer ID : 76074

No, renting of vacant land for use as vehicle parking will NOT be exempt from GST as such use of land will not fall under 9986 but under 9972. Sl.No.54 of 12/2017-CT(R) refers to 'services relating to cultivation of plants and .......... by way of - (a) ...... (b) .... (c) ...... (d) renting or leasing of ....... vacant land ......... (e) ...... etc. Please note that only when vacant land is rented or leased 'for purposes of the description first stated', will the exemption apply and not otherwise. Clearly, use of vacant land is not 'relating to cultivation, etc.'. As such, this exemption will not be available.

Posted by CA. JATIN CHRISTOPHER A on Dec 17, 2018
Answer ID : 76090

No renting of vacant land for parking of vehicle will not be covered under the said category and the owner of land should collect GST or collected rent should be treated as inclusive of GST and accordingly GST should be paid.

Posted by CA. JHA SHANKAR KUMAR on Dec 21, 2018