9911796707
TMI Blog2021 (12) TMI 163X X X X Extracts X X X X X X X X Extracts X X X X ..... 30 years from the date of allotment. Since the applicant has admitted himself that the word upfront means beforehand or before the actual evident is due , the so called premium paid in instalment after the allotment does not qualify the criteria of upfront amount. - JHR/AAR/2018-19/01 - - - Dated:- 14-9-2021 - SRI PRADHUMAN BADRI PRASAD MEENA AND SRI RAM CHANDRA PRASAD BARNWAL MEMBER Present for the applicant : Mr. Kapil Mahani and Mr. Arvind Modi (Authorized Representative) Note: Under Section 100 of the JGST Act 2017, an appeal against this ruling lies before the Appellate Authority for Advance Ruling constituted under section 99 of JGST Act 2017, within a period of 30 days from the date of service of this order. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of next four and half year. Installment Due Date Amount (In Rs.) Net Amount 1st installment 01.08.2017 ₹ 33,73,221.00 +Applicable Taxes @ 15% ₹ 5,05,983.00 ₹ 38,79,205.00 2nd installment 01.02.2018 Current Circle Rate + Applicable Tax 3rd installment 01.08.2018 Current Circle Rate + Applicable Tax 4th installment 01.02.2019 Current Circle Rate + Applicable Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the applicability of serial No. 41 of notification 12/2017 under heading 9972 of GST issued by the central government on the payment of upfront lease premium on future installments? 3. As per Section 97(2) of the Central Goods and Services Tax Act, 2017(herein after referred to as the 'CGST ACT, 2017) and Jharkhand Goods and Services Tax Act, 2017 empowers the Advance Ruling authority to decide the issue, which are as follows:- (a) classification of any goods or services or both (b) applicability of a notification issued under the provisions of this Act; (c) determination of time and value of supply of goods or services or both; (d) admissibility of input tax credit of tax paid or deemed to have been paid; ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on Lease from RIADA is exempted from tax liability under GST, as the payment for lease is covered under Serial No 41 of notification 12/2017 dated 28.06.2017. 5.3 The applicant further submitted that Section.7 defines scope of Supply under the CGST Act 2017, As per Section 7 of CGST Act 2017 Lease is covered under the Scope of supply and hence qualifies as taxable supply. However, certain kind of Lease were exempted from the above mentioned section vide Serial No 41 of notification 12/2017 under heading 9972 of GST. One time upfront amount (called as premium, salami, cost, price, development charges or by any other name) leviable in respect of the service, by way of granting long term (thirty years, or more) lease of industrial plots, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... atisfies the conditions of the said notification as follows:- (i) Lease is for 30 Years or more (ii) The Lessor is State Government or any industrial unit/corporation established by it. Now if his case satisfies that the present Lease also satisfies the third condition, then Premium paid for the Lease shall be exempted from GST, Third condition which needs to be satisfied is: (iii) The Lease premium is paid as upfront amount (called as premium, salami, cost, price, development charges or by any other name) 5.6 The Applicant submission is that the term upfront amount (called as premium, salami, cost, price, development charges or by any other name) is nowhere defined under the GST Act or Rules. However, the applicant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng 9972 of GST issued by the central government on the payment of upfront lease premium on future installments? 7.3 In view of the above, issues before us to decide whether the imposition of the GST on the land premium to be payable to the RIADA or not, we have studied the provisions laid down and notification issued in this regard as serial number 41 of notification 12/2017 under heading 9972 of GST. As per the above mentioned notification issued by the Central Government the amount paid for lease premium to the RIADA is exempted if and only if,- I. The lease premium is paid as upfront amount II. Lease is for 30 years or more III. The lessor is state Government or any industrial unit/ corporation established by it. 7. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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