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VKJ Law Offices of Vinay K. Jain Advocates & Solicitors

Lease agreement of immovable property for 99 years is classifiable under HSN 9972; attracts GST @18%: AAR

2019-TIOL-213-AAR-GST

IN THE RAJASTHAN AUTHORITY FOR ADVANCE RULING
GOODS AND SERVICES TAX

KAR BHAWAN, AMBEDKAR CIRCLE, NEAR
RAJASTHAN HIGH COURT JAIPUR-302005 (RAJASTHAN)

F.NO. AAR/GREENTECH/2018-19/ 56

ADVANCE RULING NO. RAJ/AAR/2019-20/10

Name and address of the applicantM/s GREENTECH MEGA FOOD PARK PVT LTD
Bhadun Road, Village & Tehsil – Roopangarh, Ajmer, Rajasthan 305814
GSTIN of the applicant08AAECG8111FIZU
Clause(s) of Section 97(2) of CGST/SGST Act, 2017, under which the question(s) raiseda.   admissibility of input tax credit of tax paid or deemed to have been paid;e. determination of the liability to pay tax on any goods or services or both;
Date of Personal Hearing21.05.2019
Present for the applicantShri Pankaj Ghiya, (Authorised Representatives)
Date of Ruling28.05.2019

J.P Meena, Member (Central Tax) & Hemant Jain, Member (State Tax)

Dated: May 29, 2019

GST – Applicant is a special purpose vehicle set up for establishing ‘Mega Food Park’ – Applicant has identified/developed certain individual plots on the project site for the purpose of transferring the plots for a lease of 99 years and setting up of industrial units in accordance with the Scheme guidelines – applicant wishes to enter into lease agreements with several lessees for a total period of 99 years for a consideration towards booking and allotment of developed plot – applicant seeks advance ruling on whether the lease agreement is a sale of immovable property and outside GST.

Held: Lease agreement between the applicant i.e. the lessor and the lessee for a period of 99 years is a lease agreement of immovable property classifiable under HSN 9972 and attracts GST @18%: AAR

Application disposed of

Note: Under Section 100 of the CGST/RGST Act, 2017, an appeal against this ruling lies before the Appellate Authority for Advance Ruling constituted under section 99 of CGST/RGST Act, 2017, within a period of 30 days from the date of service of this order.

RULING

(See Full Text of Judgment : 2019-TIOL-213-AAR-GST)

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