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TMI Blog2018 (11) TMI 1347X X X X Extracts X X X X X X X X Extracts X X X X ..... in respect of the following question : "Whether GST is applicable on One Time Concession Fees Charged by the applicant in respect of their property at Anjuna, Goa which is given to M/s. Myrayash Hotels Pvt. Ltd. for a long term lease of 60 years for development of infrastructure for financial business on Private Investment mode on DBFOT basis (Design Build, Finance, Operate and Transfer) providing exclusive right, license and authority to construct, operate and maintain the project." 2. The applicant is a Government Company and is registered under the provisions of GST Act, 2017 having GSTIN 30AAACG7220K1ZO. The applicant has executed Concession Agreement for Renovation/Development of their Anjuna property through Private Investment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nment, State Government, Union territory to the industrial units or the developers in any industrial or financial business area." 5. Further the applicant submitted that all the conditions for claiming exemption under this entry is satisfied and complied and hence eligible for exemption under entry 41. 6. The applicant submitted that the conditions for claiming exemption under this entry are as follows : (a) The exemption is for upfront payment; (b) The lease shall be for a period of 30 years or more; (c) The lease shall be for industrial plots for development of infrastructure for financial business; (d) The lease shall be granted by S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ness conducted as a means of livelihood or for profit, especially one which employs much labour and capital and is a distinct branch of trade." Thus, any activity which is meant for livelihood and employs labour and capital is considered as 'industry'. In this case, M/s. Myrayash Hotel Pvt. Ltd. will provide accommodation services to the customer and will earn profit out of the services supplied by them. The applicant has given plot of land on lease to M/s. Myrayash Hotel Pvt. Ltd. Since the plot is used for industrial purpose, the transaction is the lease for industrial plot. (iv) The lease right has been assigned by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 17-Central Tax (Rate), dated 13-10-2017, only when all the conditions are met. From the provisions of entry No. 41 of said Notification following criterion may be derived for availing exemption from GST - (a) the service provider should be 'State Government Industrial Development Corporation or Undertakings or any other entity having 50 percent or more ownership of Central Government, State Government, union territory'. In the matter of instant case it is on record that the service provider is an undertaking of Goa Government. (b) The lease shall be for a period of 30 years or more; in the present matter the lease is made for 60 years. (c) The long term lease shall be in respect of industrial plots or plots for development of infrastructure ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l or financial business area. Therefore, the benefits of Notification No. 12/2017-Central Tax (Rate), dated 28-6-2017 as amended by Notification No. 32/2017-Central Tax (Rate), dated 13-10-2017 is not available to the applicant. 10. Recently, the Hon'ble High Court Bombay has dealt with the identical issue in the matter of Writ Petition No. 12194 of 2017 [2018 (12) G.S.T.L. 232 (Bom.) in the case of Builders Association of Navi Mumbai and Neelsidhi Realties v. Union of India and Others. The issue before their lordship was to decide whether GST can be levied and collected on the long term lease granted by City Industrial and Development Corporation of Maharashtra Ltd. (CIDCO) for 60 years. While dealing with the issue the Hon'ble High ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it can be easily secreted that if the contract is made in Service Tax regime and the service is provided in the GST regime or the service is in the nature of continuous supply of service, the same shall be liable to tax under the GST Act. In the instant matter, though the consideration against service is received prior to the appointed day and the contract was made in service tax regime, it cannot be said that the supply of service is completed. It can easily be understand that the consideration is received against the services to be provided for next 60 years i.e. the supply of service is in the nature of continuous supply of service. Therefore, the same is liable to be taxed under GST Act. Advance Ruling under Section 98 of the CGST/GGST ..... X X X X Extracts X X X X X X X X Extracts X X X X
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