Can GST Be Levied On Sale of Vacant Land? Rajasthan High Court To Examine

The Rajasthan High Court at Jaipur has issued notice to the Rajasthan State Industrial Development and Investment Corporation Ltd on a petition raising the issue of whether GST can be levied on the sale of vacant land in relation to an e-auction.

Justice Maneesh Sharma, while hearing the matter, directed that the respondents shall not cancel the subjected e-auction if the petitioner deposits the demand amount excluding the disputed GST component within 15 days.

The petition challenges a demand notice dated September 3, 2025. The petitioner submitted before the court that GST cannot be levied on the sale of open or vacant land.

It was argued that under the Goods and Services Tax Act, 2017, sale of land is treated as neither a supply of goods nor a supply of services, as set out in Schedule III of the Act.

The petitioner further submitted that the demand raised by the respondents was without jurisdiction. It was also pointed out that despite issuing a legal notice, the respondents failed to consider the petitioner's contention that the sale of open or vacant land does not attract GST.

After hearing the submissions, the Court issued notice to the respondents. It ordered that notices be served by ordinary and registered post and made them returnable within two weeks. Pending further consideration, the Court granted interim protection against cancellation of the e-auction.

For Petitioner: Advocates Akshat Sharma with Advocate Anoop Meena