GST on a plot purchase
GST treatment differs by what the land is for. On an industrial plot at RIICO, GST applies to the application fee only. On a non-industrial plot from the same auction, the successful bidder pays 18% GST on the entire land premium, upfront, with the 25% payment. Same size, same rate per sq.m, materially different cost — which is why the tax treatment belongs on the plot, not in a footnote.
Worth knowing
- GST on the premium is payable to the authority along with the instalment, not later.
- The registration or brochure fee normally carries 18% GST regardless of plot type.
Questions people ask
What is GST on a plot purchase in a government plot auction?
GST treatment differs by what the land is for. On an industrial plot at RIICO, GST applies to the application fee only. On a non-industrial plot from the same auction, the successful bidder pays 18% GST on the entire land premium, upfront, with the 25% payment. Same size, same rate per sq.m, materially different cost — which is why the tax treatment belongs on the plot, not in a footnote.
What should a bidder watch for with gst on a plot purchase?
GST on the premium is payable to the authority along with the instalment, not later.
Anything else about gst on a plot purchase?
The registration or brochure fee normally carries 18% GST regardless of plot type.