GST Exemption also Applicable on Installments
Payment for Long Term Lease of Industrial Plot – TRU Clarification
[Circular No.
101/20/2019-GST dated 30 April 2019]
Subject: GST
exemption on the upfront amount payable in installments for long
term lease of plots, under Notification No. 12/2017 – Central Tax (R) S.
No.41 dated 28.06.2017.
Representations
have been received by the Board seeking clarification regarding admissibility
of GST exemption on the upfront amount which is
determined upfront but is paid or payable in installments for long term (thirty
years, or more) lease of industrial plots or plots for development of financial
infrastructure under Notification 12/2017 – Central Tax (R) S. No.41 dated
28.06.2017.
2.
The matter has been examined. The entry at S. No.41 of
Notification 12/2017 –Central Tax (R) dated 28.06.2017 reads as under:
|
Sl.No |
Chapter,
Section, Heading, Group or Service Code (Tariff) |
Description
of Services |
Rate
(percent.) |
Condition |
|
(1) |
(2) |
(3) |
(4) |
(5) |
|
41 |
Heading
9972 |
“Upfront
amount (called as premium, salami, cost, price, development charges or by any
other name) payable in respect of service by way of granting of long term
lease (of thirty years, or more) of industrial plots or plots for development
of infrastructure for financial business, provided by the State Government
Industrial Development Corporations or |
NIL |
NIL |
3.
It is hereby clarified that GST exemption on the upfront amount (called as
premium, salami, cost, price, development charges or by any other name) payable
for long term lease (of thirty years, or more) of industrial plots or plots for
development of infrastructure for financial business under Entry No. 41 of
Exemption Notification 12/2017 – Central Tax (R) dated 28.06.2017 is admissible
irrespective of whether such upfront amount is payable or paid in one or more
instalments, provided the amount is determined upfront.
4.
Difficulty if any, in implementation of this Circular may be brought to notice
of the Board.
F. No.
354/27/2019-TRU