‘Handover’ of Building and Civil Structure for consideration not sale but ‘Supply of Service’, taxable @ 18% GST: Odisha AAR

The Odisha Authority for Advance Rulings (AAR) has ruled that the transfer of a building or civil structure for consideration is classified as the supply of service, and not as a sale of immovable property, thereby attracting an 18% GST. This ruling clarifies the taxation of transactions where buildings or structures are handed over for consideration without transfer of ownership. According to the AAR, such transfers do not qualify as sales but fall under the category of services. The decision holds significant implications for real estate developers, contractors, and companies involved in infrastructure projects, as they must account for GST on these transactions. The ruling also adds clarity to the classification of transactions under the GST regime, potentially affecting pricing and contract structuring in the construction and real estate sectors.