Failed Land Transactions May Attract GST

A recent ruling under the goods and services tax regime may increase the tax liability in failed land transactions. A two-member bench of the Gujarat Authority for Advance Rulings has ruled if a seller agrees to exit a contract by forfeiting the advance paid by a buyer, its act will be treated as a supply of service—a “declared service”—under the Central Goods and Services Tax Act, 2017. Forfeitur…