Case Law Details
In re Anmol Industries Limited (GST AAR West Bengal)
Introduction: The recent ruling by the Authority for Advance Ruling (AAR) in West Bengal sheds light on the GST implications of upfront lease premiums for industrial land. In the case of Anmol Industries Limited, the applicant sought clarification on the exemption under entry 41 of Notification No. 12/2017 Central Tax (Rate) dated 28.06.2017 for the premium paid towards leasing land for industrial purposes by Shyama Prasad Mookerjee Port, Kolkata (SMPK).
Detailed Analysis:
The applicant, a manufacturing company, entered into a leasing agreement with SMPK for an industrial plot at Taratala Road, intending to set up a commercial office complex. The AAR’s analysis focused on the conditions outlined in entry 41 of the notification:
i. Lease Period: The lease period should be thirty years or more – fulfilled in this case.
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