In re M/s Punjab Small Industries & Export Corporation Limited (AAR Chandigarh)
Issue under Consideration
The Applicant wants the advance ruling on the issue that a company duly registered under the Companies Act, 2013 which is owned by State Government of Punjab and is mainly engaged in the business of developing and providing Industrial Plots on long term lease to the industrialists by virtue of Point No. 41 of the Notification No. 12/2017 Central Tax (Rate) dated 28.06.2017 is exempt from GST- whether the following ancillary services provided by it are also exempt:-
• Transfer Fees – Fees charged for the purpose of transfer of Industrial Plot from one person to another.
• Extension Fees – Fees charged for delay in the commencement’ of construction and production.
• Conversion Fees – Fees charged for the conversion of leasehold plot into freehold.
• Processing Fees – Fees charged for the purpose of transfer of Industrial Plots within the family, change in constitution of ownership/shareholding pattern permission for sale of freehold plot.
• Bifurcation Fees – Fees charged for the permission to sub divide the industrial plot in to 2 or more numbers.
• Tower Charges – Fees charged from the plot-holder for the permission to install Telecommunication Tower on the Industrial plots.
Held by AAR
Above services are taxable services in terms of sub-section (21) of section 2 read with section 9 of the CGST Act, 2017. The services are not specifically exempted in terms of Notifications issued under section 11 of the GGST Act, 2017. For the purpose of charging the tax, the services are covered under “Other Miscellaneous services”-Group 99979, Service Code 999799-‘Other” services nowhere else classified’ as per the scheme of classification of services in the Annexure to Notification No.11/2017- Tax (Rate) dated 28.06.2017 with CGST rate of 9% as provided at Sr. No. 35 of Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 (as amended) with equal rate (9%) of UTGST as per entry No. 35 in Notification No. 11/2017 – Union Territory Tax (Rate) dated 28.06.2017 (as amended).
FULL TEXT OF ORDER OF APPELLATE AUTHORITY OF ADVANCE RULING, CHANDIGARH
Present application has been filed u/s 97 of the Central Goods & Services Tax Act, 2017 & similar provisions under Union Territory Goods and Services Tax Act, 2017 (herein after referred to as CGST Act, 2017 & UTGST Act, 2017). The Applicant M/s Punjab Small Industries & Export Corporation Limited is state Government owned Industrial Development undertaking which is mainly engaged in providing (30 years or more) lease of Industrial Plots against one time upfront amount (Called as premium, salami, cost, price, development charges or by any other name) to the industrial units, which by virtue of Point No. 41 of the Notification No. 12/2017 – Central Tax (Rate), dated 28.06.2017 is exempt from GST.
