9911796707
TMI Blog2018 (9) TMI 2101X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. The amount payable in instalment to the Ranchi Industrial Development Authority (RIADA) on lease in respect of the scheduled land/ shed for a period of 30 years from the date of allotment after getting the allotment letter does not come under the category of upfront payment. Hence, it is not exempted from the GST vide serial no 41 of notification 12/2017 under heading 9927 of GST. - JHR/AAR/2018-19/02 - - - Dated:- 14-9-2018 - SRI PRADHUMAN BADRI PRASAD MEENA, AND SRI RAM CHANDRA PRASAD BARNWAL, MEMBER ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... relevant for kind consideration are reproduced below:- i. The period of tenure of lease in respect of the scheduled land/shed shall be for a period of 30(thirty) years from the date of allotment. ii. Rs. 22,48,814.00 plus taxes shall be payable as first installment of premium of land followed by 9 installments payable over a period of next four and half year. Installment Due Date Amount (In Rs.) Net Amount 1 st installment 01.08.2017 Rs. 22,48,814.00 + Applicable Taxes @ 15% Rs. 3,37,322.00 Rs.25,86,136.00 2 nd installment 01.02.2018 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es Twenty Eight Thousand Only) which shall be revised from time to time by the authority and shall be payable by the company. 2. The applicant sought Advance Ruling on the following questions/issues 1. The applicant is seeking clarification on the imposition of the GST on the land premium to be payable to the RIADA. 2. What is 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r more) lease of industrial plots provided by State Government Industrial Corporations. 5.2 Since the applicant as entered in to agreement with RIADA under the lease agreement for the period of 30 years for the lease of industrial plot provided by the state industrial development corporation, the upfront payment made against the land taken 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase of industrial plots from so much of service tax leviable thereon under section 66 B of the said Act as is leviable on the one time upfront amount (called as premium, salami, cost price, development charges or by any other name) payable for such lease. 5.5 The Applicant is has also submitted that the lease in question, prima facie satisfies 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct of the issue. 7.2 The applicant sought Advance Ruling on the two questions i.e. - (i) The applicant is seeking clarification on the imposition of the GST on the land premium to be payable to the RIADA. (ii) What is 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? 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 i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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