Administrative Policy
15 November 2023 GST/HST Ruling 245913 - Application of the GST on Title Transfer
the transfer of land to and from a builder to secure the contract price for home construction was not subject to GST
An individual transferred title to his lands (which included a detached dwelling) to a builder, who paid off the existing mortgage on the lands with new mortgage financing, demolished the existing home and built a new one, and conveyed the lands back to the individual on being paid the full contract price plus GST.
CRA ruled that, given that s. 134 deemed the transfer and retransfer of title not to be supplies, the individual had been charged GST on the portion of the contract price that related to the lands, in error.