VATupdate

GST payable on Amount Forfeited on account of Breach of Agreement of Sale of Land: AAR

The Gujarat Authority of Advance ruling (AAR) ruled that GST payable on Amount forfeited on account of breach of agreement of sale of land. The applicant,  has submitted that they want to sell factory land to Mr. B for Rs.1 crore. Mr. B showing acceptance to the sale agreement, gives advance money amounting to Rs. 20 lakhs which is 20% of the total sale amount. Now for some reasons Mr. B could not complete the transaction upon which Fastrack forfeits an amount of Rs. 20 lakhs

Source Taxscan

 

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