Case Law Details
In re Chennai Metro Rail Ltd. Ltd. (GST AAR Tamilnadu)
Whether leasing of pathway to a person to her/his dwelling unit by CMRL is taxable under GST?
In the case at hand, the applicant owns the pathway but has agreed through an MOU with the individual to permit her to use the pathway to access the main road from her residential property which is adjacent to the pathway. As seen above, this is an easement right given by the applicant to the individual to enjoy her residential property for a period of time for a consideration. The applicant has agreed through a MOU to tolerate her use of this pathway for a period of time for consideration. Hence, this service of agreeing to grant easement rights is a service of agreeing to tolerate an act and is classifiable under SAC 999794 under ‘other miscellaneous services’/ ‘Agreeing to tolerate an act’.
‘Other miscellaneous services’ classifiable under SAC 9997 are taxable to 9 % CGST and 9% SGST under SI. No 35 of Notification 11/2017 -Central Tax (Rate) dt 28.06.2017 and Notification No. II(2)/CTR/532(d-14)/2017 vide G.O. (Ms) No. 72 dated 29.06.2017 respectively.
AAAR Ruling:Rights granted for shared access of pathway is classifiable under SAC 999794
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