In re Ranchi Smart City Corporation Limited (GST AAR Jharkhand)
Q.1: Applicability of GST on transfer of leasehold land which includes other services such as Electricity Line, Water Line, Drainage Line, Road, Sewerage Line etc. like in case of plotted development.,
Ans: As discussed in forging paras, the leasing of property by RSCCL, if covered under the provisions of Notification No. 12/2017-Central Tax (R) dated 28.06.2017, is exempted from the tax. In other cases, the leasing of property by RSCCL is taxable supply of service.
Q.2: Applicability of GST on transfer of ownership of Freehold land which includes other services such as Electricity Line, Water Line, Drainage Line, Road, Sewerage Line etc. like in case of plotted development.
Ans: As discussed in forging paras, the activity of the applicant appears absolute sale of land. Hence, the consideration received by RSCCL against transfer of ownership of Freehold land, i.e., sale of land is not taxable.
Q.3: Applicability of GST on Annual Lease Rent
Ans: Leasing of land for commercial purpose is a taxable supply of service as per SI No.2(a) of Schedule II of CGST Act,2017 and attracts GST @ 18%.
Q.4: Applicability of GST Rate on the above cases
Ans: The amount received by the applicant against transfer of ownership of freehold land. i.e . sale of land is not taxable under GST Act. the amount received by the applicant against transfer of leasehold land is taxable under Leasing services and attracts GST @ 18%. if the activity not covered under the provisions of Notification No. 12/2017-Central Tax (R) dated 28.06.2017.
Q.5: Whether they as a service provider con claim ITC on their inward goods and services.
Ans: No. The applicant as a service provider cannot claim ITC on their inward goods or services.
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, JHARKHAND
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