GST exemption on the upfront amount payable in installments for long term lease of plots, under G.O.Ms.No.588, Revenue (Commercial Taxes-II), 12th December, 2017 {corresponding Notification 12/2017 - Central Tax (rate) dated 28.06.2017}. - GST - States - Circular No. 24/2019

GOVERNMENT OF ANDHRA PRADESH COMMERCIAL TAXES DEPARTMENT Proceedings of the Chief Commissioner of State Tax Present: Sri.J.Syamala Rao, I.A.S. O/o The Chief Commissioner of State Taxes, Eedupugallu. CCSTs ref. CCW/74/GST/2015 Dt. 16.05.2019 Circular No. 24/2019 Subject: GST exemption on the upfront amount payable in installments for long term lease of plots, under G.O.Ms.No.588, Revenue (Commercial Taxes-II), 12th December, 2017 {corresponding Notification 12/2017 - Central Tax (rate) dated 28.06.2017}. Representations have been received by the Chief Commissioner, 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 G.O.Ms.No.588, Revenue (Commercial Taxes-II), 12th December, 2017 {corresponding Notification 12/2017 - Central Tax (rate) dated 28.06.2017}. 2. The matter has been examined. In the said notification, the entry at S. No.41 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 G.O.Ms.No.588, Revenue (Commercial Taxes-II), 12th December, 2017 {corresponding Notification 12/2017 - Central Tax (R) dated 28.06.20.17} is admissible irrespective of whether such upfront amount is payable or paid in one or more instalments, provided the amount is determined upfront. The field officers are requested to publicize the contents of this circular. Chief Commissioner