GST exemption on the upfront amount payable in installments for long term lease of plots, under Notification No. 47/ST-2, dated 30.06.2017 - GST - States - 1102/GST-2

HARYANA GOVERNMENT EXCISE AND TAXATION DEPARTMENT From Excise Taxation Commissioner, Haryana, Panchkula. To All the Dy. Excise Taxation Commissioner (ST), in the State of Haryana Memo No. 1102/GST-2 Panchkula, date the 16.05.2019 Subject: GST exemption on the upfront amount payable in installments for long term lease of plots, under Notification No. 47/ST-2, dated 30.06.2017 -reg. The Circular seeks to clarify the issue regarding admissibility of GST exemption on the upfront amount which is determined upfront but is paid or payable in instalments for long term lease (thirty years or more) of industrial plots or plots for development of financial infrastructure under Notification No. 47/ST-2, dated 30.06.2017. 2. The matter has been examined. The entry at S. No.41 of Notification No. 47/ST-2, dated 30.06.2017 reads as under: Sl. No Chapter, Section, Heading, Group or Service Code (Tariff) Description of Services Rate (per cent.) Condition (1) (2) (3) (4) (5) 41 Heading 9972 Upfront amount (called as premium, salami, cost, price, development charges or by any other name) payable in respect of service by way of granting of long term lease (of thirty years, or more) of industrial plots or plots for development of infrastructure for financial business, provided by the State Government Industrial Development Corporations or Undertakings or by any other entity having 50 per cent. or more ownership of Central Government, State Government, Union territory to the industrial units or the developers in any industrial or financial business area. NIL NIL 3. It is hereby clarified that GST exemption on the upfront amount (called as premium, salami, cost, price, development charges or by any other name) payable for long term lease (of thirty years, or more) of industrial plots or plots for development of infrastructure for financial business under Entry No. 41 of Exemption Notification No. 47/ST-2, dated 30.06.2017 is admissible irrespective of whether such upfront amount is payable or paid in one or more instalments, provided the amount is determined upfront. 4. Difficulty if any, in implementation of this Circular may be brought to notice of the Department. Amit Kumar Agrawal Excise Taxation Commissioner-cum- Commissioner of State Tax, Haryana