Notification No. 28/2019-Central Tax (Rate) dated 30th December, 2019
To amend notification No. 12/2017- Central Tax (Rate) so as to exempt certain services as recommended by GST Council in its 38th meeting held on 18.12.2019.
Exemption to upfront amount payable for long term lease of industrial/ financial infrastructure plots by an entity having 20% or more ownership of Central or State Government. Earlier the exemption was available to an entity having 50% or more ownership of Central or State Government.
Conditions imposed to ensure that the leased plots are used for the purpose for which they are allotted; to monitor the intended use and to recover the amount with interest in case of any violations.
Government of India
Ministry of Finance
(Department of Revenue)
Notification No. 28/2019- Central Tax (Rate)
New Delhi, the 31st December, 2019
G.S.R. 970(E). – In exercise of the powers conferred by sub-section (3) and sub-section (4) of section 9, sub-section (1) of section 11, sub-section (5) of section 15 and section 148 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on being satisfied that it is necessary in the public interact so to do, on the recommendations of the Council, hereby makes the following further amendments in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No. 12/2017- Central Tax (Rate), dated the 28th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 691(E), dated the 28th June, 2017, namely:-
In the said notification, in the Table, against serial number 41, –
(a) in column (3), for the figure “50”, at both the places where they occur, the figure “20 ” shall be substituted;
(b) for the entry in column (5), the following entries shall be substituted, namely, –
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(5) |
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“Provided that the leased plots shall be used for the purpose for which they are allotted, that is, for industrial or financial activity in an industrial or financial business area: Provided further that the State Government concerned shall monitor and enforce the above condition as per the order issued by the State Government in this regard: Provided also that in case of any violation or subsequent change of land use, due to any reason whatsoever, the original lessor, original lessee as well as any subsequent lessee or buyer or owner shall be jointly and severally liable to pay such amount of central tax, as would have been payable on the upfront amount charged for the long term lease of the plots but for the exemption contained herein, along with the applicable interest and penalty: Provided also that the lease agreement entered into by the original lessor with the original lessee or subsequent lessee, or sub- lessee, as well as any subsequent lease or sale agreements, for lease or sale of such plots to subsequent lessees or buyers or owners shall incorporate in the terms and conditions, the fact that the central tax was exempted on the long term lease of the plots by the original lessor to the original lessee subject to above condition and that the parties to the said agreements undertake to comply with the same.”. |
2. This notification shall come into force with effect from the 1 st day of January, 2020.
[F. No. 354/204/2019- TRU]
(Ruchi Bisht)
Under Secretary to the Government of India
Note: -The principal notification No. 12/2017 – Central Tax (Rate), dated the 28th June, 2017 was published in the Gazette of India, Extraordinary, vide number G.S.R. 691 (E), dated the 28th June, 2017 and was last amended by notification No. 21/2019 – Central Tax (Rate), dated the 30th September, 2019 vide number G.S.R. 734 (E), dated the 30th September, 2019.
Notification No 28/2019-CTR dt. 31/12/19 is not clear about resale of industrial properties (Leased Properties) situated in Govt Industrial Corporations such as MIDC or GIDC.
i.e. GIDC had allotted industrial plot to A with lease for 99 years. If A sales the said property after 1.01.2020 incidence of GST is not clear.