GST exemption on the upfront amount payable in for long term lease of plots, under Notification 12 — State Tax (Rate) Sl. No.41 dated 29.06.2017 (No. FTX.56/2017/25 dated 29.06.2017) - GST - States - 55/2019-GST (CT/GST-15/2017/367-A)

GOVERNMENT OF ASSAM OFFICE OF THE COMMISSIONER OF TAXES, ASSAM :: KAR BHAWAN DISPUR, GUWAHATI-6 CIRCULAR NO. 55/2019-GST Dated Dispur the 6 th May, 2019 Subject: GST exemption on the upfront amount payable in for long term lease of plots, under Notification 12 - State Tax (Rate) Sl. No.41 dated 29.06.2017 (No. FTX.56/2017/25 dated 29.06.2017) -reg. No. CT/GST-15/2017/367. - Representations have been received by the Commissioner of State tax, Assam, seeking clarification regarding admissibility of GST exemption on the upfront amount which is determined upfront but is paid or payable in installments for long term (thirty years, or more) lease of industrial plots or plots for development of financial infrastructure under Notification 12 - State Tax (Rate) Sl. No. 41 dated 29.06.2017 (No. FTX.56/2017/25 dated 29.06.2017). 2. The matter has been examined. The entry at SI. No.41 of Notification 12 - State Tax (Rate) dated 29.06.2017 (No. FTX.56/2017/25 dated 29.06.2017) 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 12 - State Tax (Rate) dated 29.06.2017 (No. FTX.56/2017/25 dated 29.06.2017) is admissible irrespective of whether such upfront amount is payable or paid in one or more installments, provided the amount is determined upfront. 4. This Circular is clarificatory in nature and not meant for any interpretation of provisions of the Act and rules. 5. Difficulties, if any, in implementation of the above instructions may be brought to the notice of the Commissioner at an early date. 6. This Circular shall be deemed to have been issued on 30th April, 2019. Sd/- Anurag Goel, IAS., Commissioner of State tax, Assam, Dispur, Guwahati Memo No. CT/GST-15/2017/367-A