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TMI Blog2021 (10) TMI 1061X X X X Extracts X X X X X X X X Extracts X X X X ..... dvance Ruling seeking clarification. 2. At the outset, it is made clear that the provisions of both the CGST Act and the TGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to any dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the TGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, the expression 'GST Act' would be a common reference to both CGST Act and TGST Act. 3. It is observed that the applicant enclosed copies of challans as proof of payment of Rs. 5,000/- for SGST and Rs. 5000/- for CGST towards the fee for Advance Ruling. The Applicant has declared that the questions raised in the applicat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plicant from and out of the land received from the TSIIC for specified purpose of industrial development is outside the purview of GST by virtue of the said activity failing under Entry 5 of Schedule III of Central Goods & Service Tax Act, 2017 and corresponding provisions under Telangana Goods & Service Tax Act, 2017 as amended (hereinafter referred to as GST Act). 2. Whether in the facts and circumstances the activity of infrastructure development (ID) of land received from the TSIIC for specified purpose of industrial development and undertaken on behalf of allottee members (allottee(s) or the member(s)) does not qualify as a "supply" under Section 7 of the Central Goods & Service Tax Act, 2017 & corresponding provision under Telangana ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upply under GST. 7. Discussions & Findings: The applicant have sample documentary evidence in form of sale agreement between itself as buyer and TSIIC as seller and then between itself as seller and an industrialist as buyer. The contention of the applicant regarding the nature of their business is as follows: a) TSIIC transfers the possession of the acquired land by way of a sale agreement to the applicant for development of the land in order to allot it to various industrialists under the condition that the sale deed would be executed only after such development is completed (clause 4(e) of the agreement of sale at page-4). b) The applicant would develop the land according to the requirement and directions of the TSIIC and enter int ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... session. There is no agreement with the individual industrialist for development of infrastructure in the land. By the constitution 101st Amendment Act, 2016 Clause 26A was introduced in the Article 366 to define Services. This clause defines Services as anything other than goods. Concomitantly following this definition of the constitution the CGST Act, 2017 defines services as anything other than goods. Therefore, supply of all immovable property including supply of land has to be treated as supply of services for the purpose of CGST/SGST Acts. However, sub-section 2 of section 7 creates a deeming fiction to exclude certain activities from taxation even though they are goods or services as per the definition in the CGST/SGST Acts. Accord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7. Therefore the activity undertaken by the applicant for construction of the immovable property would qualify to be a "works contract" if i. It is executed in pursuance of a contract or agreement; and ii. There is a transfer of property in goods in execution of works contract from the contractor to the contractee; and iii. There is a consideration paid by the contractee to the contractor. The perusal of the contract entered by the applicant with the TSIIC ltd clearly indicates that the property in land will be transferred to the applicant only when the applicant completes the development of infrastructure of schedule land. However, this clause in the agreement appears to have been made to meet the larger objective enumerated in ind ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pplicant sells the land after developing by way of erecting a civil structure or a building or a complex then such supply is liable to tax under CGST/SGST Acts. However if land is sold without any development involving any civil structure or building or complex such supply falls under paragraph 5 of schedule III to Section 7(2) of CGST Act, 2017 and hence is exempt from tax. 2. If the applicant executes works contracts involving transfer of property in goods for a consideration under an agreement of contract such consideration will be liable to tax. However if these elements are missing in execution of a construction it shall not be liable to tax. The application filed by M/s. TIF Integrated Industrial Parks Pvt. Ltd. is disposed accordin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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