The Government of Odisha on February 11, 2025, issued a notification regarding the non-applicability of Goods and Services Tax (GST) on compensation value paid for the acquisition of land and structural work.
The sale of land/building is not considered a supply of goods or services under the Central Goods and Services Tax (CGST) Act and the Odisha Goods and Services Tax (OGST) Act, 2017, and is thus outside the purview of GST. However, it has been observed that GST was mistakenly paid on the compensation amount paid to private landowners during land/building acquisition. This is an error, and corrective action is required. All subordinate offices should be informed about this, and any doubts should be clarified with the Finance Department.
[Notification No. FIN-CT1-TAX-0006-2025-4654/F]
