Case Law Details

Case Name : In re M/s Indo Autotech Limited (GST AAR Rajasthan)
Appeal Number : Advance Ruling No. RAJ/AAR/2019-20/15
Date of Judgement/Order : 08/07/2019
Related Assessment Year :
Courts : AAR Rajasthan (91) Advance Rulings (1497)

In re M/s Indo Autotech Limited (GST AAR Rajasthan)

The applicant has purchased industrial plots in Mahindra World City located in Tehsil- Sanganer, Jaipur, Rajasthan 302037 on long term lease. The developer i.e. M/s Mahindra World City has charged GST 18% on lease premium value of industrial plots under HSN 997212.

2. QUESTIONS ON WHICH THE ADVANCE RULING IS SOUGHT

Whether M/s Mahindra World City (a developer) who has taken the entire land from state of Rajasthan to further lease out to dustrial units (applicant is one of the industrial unit) is liable to harge GST on the lease amount?

3. PERSONAL HEARING

In the matter personal hearing was granted to the applicant on 04.07.2019 at Room no. 2.29 NCRB, Statue Circle, Jaipur. Shri Manoj Mohanty and Shri Harish Kumar Dixit (Authorised Representatives) of applicant appeared for PH. During the PH, they submitted that they have more clarification regarding issues they raised in the application and therefore requested to withdraw their advance ruling application.

4. COMMENTS OF THE JURISDICTIONAL OFFICER

The jurisdictional officer (Deputy Commissioner, CGST Division-G, Sector-10, Vidyadhar Nagar, Jaipur, Rajasthan 302005) has submitted his comments vide e-mail dated 31.05.2019 which can be summarized as under:

In this regard it is stated that Entry No. 41 of Exemption Notification No. 12/2017-CT (rate) as clarified by TRU’s letter F.No. 354/27/2019-TRU dated 30.04.2019 provides for exemption from GST to lease money, price / upfront payment (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 or more years) of industrial plots or plots for development of industrial infrastructure for financial business provided by the state government Industrial Development Corporation or Undertaking or by any other entity having 50% or more ownership of Central Government, State Government, Union territory to the industrial units or the developers in any industrial or financial business area. In the present case long term lease has been claimed to have been granted by M/ s Mahindra World City (Jaipur) Ltd. which is not a state government Industrial Development Corporation or Undertaking or by any other entity having 50% or more ownership of Central Government, State Government, Union territory to the industrial units or the developers in any industrial or financial business area. The fact that RIICO is a shareholder in said leasing company does not equate it with RIICO. Therefore, in the opinion of this office, no exemption from GST is admissible in the present case.

5. FINDINGS, ANALYSIS & CONCLUSION:

Shri Manoj Mohanty and Shri Harish Kumar Dixit (Authorised Representatives) of applicant appeared for PH. During the PH, they requested to withdraw their advance ruling application and submitted an application dated 04.07.2019 in this regard.

6. In view of the foregoing, we rule as follows:-

RULING

Since the applicant has withdrawn the application, therefore no ruling is given.

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