In re Essel Mining Industries Limited (GST AAR Odisha)
In the case of In re Essel Mining Industries Limited (GST AAR Odisha), the applicant, Essel Mining Industries Ltd., sought an advance ruling on whether the transfer of buildings, civil structures, and railway sidings to Odisha Mining Corporation Limited (OMCL) constituted a sale of a building and thus fell under clause 5 of Schedule III of the CGST Act, 2017, exempting it from GST. The applicant argued that since the buildings and railway sidings were constructed during the lease period and ownership was transferred to OMCL after the lease expired, this transaction should be considered a sale of immovable property, which is not subject to GST. However, the AAR ruled that since the applicant had no ownership of the land and the transfer involved monetary consideration, the transaction could not be classified as a sale of a building under Schedule III. Consequently, the transaction is subject to GST as it does not fall within the exemption provided for the sale of buildings under the CGST Act.
Read AAAR Order: No Power to Extend Appeal Time Beyond 30 Days: GST AAAR Rejects Condonation Plea
FULL TEXT OF THE ORDER OF AUTHORITY FOR ADVANCE RULING, ODISHA
