In re Anmol Industries Limited (GST AAR West Bangal)
The GST Authority for Advance Rulings (AAR) in West Bengal has ruled that the upfront premium payable by Anmol Industries Limited towards the services of granting a long-term lease of industrial plots by Shyama Prasad Mookerjee Port (SMPK) does not qualify for a tax exemption under entry 41 of Notification No. 12/2017-CGST (Rate) dated June 28, 2017.
The case involved Anmol Industries Limited, which had entered into an agreement for leasing land at Taratala Road, Kolkata, for a period of 30 years, intending to set up a commercial office complex. The applicant sought clarification on whether this lease arrangement was exempted from GST under the aforementioned notification, which exempts certain long-term leases of industrial plots.
Key Criteria for Exemption
The GST exemption in question applies if specific conditions are met, including:
- The lease period must be 30 years or more.
- The property leased should be industrial plots or plots for infrastructure development for financial business.
- The service provider must be a State Government Industrial Development Corporation, undertaking, or any other entity with 20% or more ownership by the Central Government, State Government, or Union Territory.
- The service recipient must be an industrial unit.
Authority’s Observations and Findings
