GST on amounts collected towards Local Area Development, which form part of value of lease/rental services

In re Karnataka Solar Power Development Corporation Limited (GST AAR Karnataka) 1. The amount collected by the applicant towards LAD fund forms part of value of supply of rental/leasing service and hence is taxable under forward charge mechanism. 2. The applicable SAC for the impugned activity is 997212. 3. The exemption under S1.No.3 or 3A of Notification 12/2017-Central Tax (Rate) dated 28.06.2017 is not applicable in the impugned activity, as it is not qualify to be a pure service, provided to Central Government, State Government or Union Territory or Local Authority or a Government Entity ...