Case Law Details
In re M/s Goa Tourism Development Corporation Ltd. (GST AAR Goa)
Whether GST is applicable on One Time Concession Fees Charged by M/s Goa Tourism Development Corporation Ltd. in respect of their property for a long term lease of 60 years?
From the statute of the provisions of section 142(10) ibid it can be easily secreted that if the contract is made in Service Tax regime and the service is provided in the GST regime or the service is in the nature of continuous supply of service, the same shall be liable to tax under the GST Act. In the instant matter, though the consideration against service is received prior to the appointed day and the contract was made in service tax regime, it cannot be said that the supply of service is completed. It can easily be understand that the consideration is received against the services to be provided for next 60 years i.e. the supply of service is in the nature of continuous supply of service. Therefore, the same is liable to be taxed under GST Act.
Also Read: AAAR Order : GST on one time concession fees in respect of property given on Long Term Lease
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING,GOA
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