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TMI Blog2024 (7) TMI 357X X X X Extracts X X X X X X X X Extracts X X X X ..... 1,60,42,203/-, as submitted by the applicant for the period from 01.09.2005 to 31.08.2022, shall be liable to Goods and Services Tax. The collection of increased rents for the past period shall be treated as supply under the CGST / TNGST Acts, 2017 - the entire increased rent amount of Rs. 1,60,42,203/-, as submitted by the applicant for the period from 01.09.2005 to 31.08.2022, shall be liable to GST, under CGST/TNGST Acts, 2017. - SMT. D. JAYAPRIYA, AND SMT. A. VALLI, MEMBER 1. Any appeal against this Advance Ruling order shall lie before the Tamilnadu State Appellate Authority for Advance Ruling, Chennai under Sub-Section (1) of Section 100 of CGST Act 2017/ TNGST Act 2017, within 30 days from the date on the ruling sought to be appealed, is communicated. 2. In terms of Section 103 (1) of the Act, Advance Ruling pronounced by the Authority under Chapter XVII of the Act shall be binding only- (a) on the applicant who had sought it in respect of any matter referred to in sub-section (2) of Section 97 for advance ruling. (b) on the concerned officer or the jurisdictional officer in respect of the applicant. 3. In terms of Section 103 (2) of the Act, this advance ruling shall be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uare feet on 01.09.2002 and partially vacated 4569.49 square feet on 11.07.2017 and have been using the remaining portion continuously till date. The applicant submitted the property details as Ground Floor and First Floor of the office building and the front and rear opening space on the Northen side of the approach road to Ayanavaram Depot and Bus Stand bearing the Door No. 4, Anderson Street, Ayanavaram, Chennai-23. 3.3 The applicant submitted that according to the agreement, both the parties agreed to revise the rent once every three years based on existing government orders, starting from 1.09.2005 and due to unresolved negotiations, such rent revision for the respective years has not been implemented. That during the fiscal year 2023-24, both parties mutually agreed to revise the enhanced rent, settling on a 15% increase every three years and this revision was retrospectively calculated from September 1, 2005. Pursuant to this arrangement RTO, Chennai will pay the differential amount of Rs. 1,60,42,203/- to the applicant upon submission of Supplementary Invoices. 3.4. The applicant submitted the details regarding mutually agreed differential rent for which supplementary invoi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 24, stated that there are no pending proceedings against the applicant and offered the following comments;- With regard to query no. 1 the Central authority quoting the provisions of Sec. 142 (2) (a) under CGST Act, 2017 stated that the collection of increased rents for the period is considered as the term supply under Goods and services Act. With regard to query No. 2 the authority stated that pursuant to agreement, the tenant will pay the differential amount of Rs. 1,60,42,203/- plus GST to the applicant upon submission of supplementary invoices. 4.3 The State jurisdictional officer, Egmore Assessment Circle stated that there is no proceedings pending in relation to the issue raised in the application by the Applicant and the Joint Commissioner (ST), Intelligence-1 stated that there is no proceedings pending or decided on the issue raised in the application by the Applicant. 5. PERSONAL HEARING The applicant, was given an opportunity to be heard in person on 28.05.2024. Shri. G. Vignesh, Chartered Accountant, appeared for the personal hearing as the Authorised Representative (AR) of the Applicant. The AR submitted that the premises owned by the applicant was leased to Regional Tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to this arrangement the tenant i.e RTO, Chennai will pay the differential amount of Rs. 1,60,42,203 to the applicant upon submission of Supplementary Invoices. 6.5. We find that the applicant also submits that the tenant though has agreed to pay the enhanced rent has contended that GST does not apply on the enhanced rent and their argument rests on the premise that Good and service Act came into effect only after July 1, 2017, and thus invoices related to the period prior to this date are not subject to GST, that such enhanced revision in rent pertains to a period when Service Tax was applicable, hence exempt from GST. The applicant also submits that due to this ongoing ambiguity, the applicant has been unable to raise the invoice and collect the revised amount. That in a recent communication dated December 24, 2023, the tenant expressed willingness to remit the revised rental value inclusive of GST, contingent upon the provision of successive Advance Ruling orders affirming Metropolitan Transport Corporation's stance that such rent is indeed taxable under Goods and Services Tax Laws. Hence, the applicant is before this authority seeking advance ruling on the said issue. 6.6. W ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ST law have incorporated provisions foreseeing the issues which may arise post transition into GST era. One such provision relevant to the issue on hand is provided under Section 142 (2) (a) of the CGST Act, 2017, the same is reproduced below; Section 142. Miscellaneous transitional provisions.- (1) ................ (2) (a) where, in pursuance of a contract entered into prior to the appointed day, the price of any goods or services or both is revised upwards on or after the appointed day, the registered person who had removed or provided such goods or services or both shall issue to the recipient a supplementary invoice or debit note, containing such particulars as may be prescribed, within thirty days of such price revision and for the purposes of this Act such supplementary invoice or debit note shall be deemed to have been issued in respect of an outward supply made under this Act; 6.9 In view of the above provisions, we find that in case of upward price revision, a registered person will issue a supplementary invoice or debit notes within 30 days from the date of revision and such revision shall be treated as supply under GST Act and tax is payable under this Act. In the instan ..... X X X X Extracts X X X X X X X X Extracts X X X X
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