Case Law Details
In re Goa Tourism Development Corporation (GST AAAR Goa)
The Appellant is registered under the GST Act, 2017 and hold GSTIN: 30AAACG7220K1Z0. The Appellant sought an Advance Ruling in respect of the question whether GST is applicable on one time concession fees charged by the appellant in respect of their property at Anjuna, Goa, which is given to M/s Myrayash Hotels Pvt. Ltd for a long term lease of 60 years for development of infrastructure for financial business or private investment made on DBFOT (Design, Build, Finance, operate and Transfer) providing; exclusive right, license and authority to construct, operate and maintain the project.
The Authority for Advance Ruling, Goa vide its Order no. Goa/GAAR/4/2018-19/2429 held that the service provided by the Appellant, does not satisfy the criteria mentioned at Sr. No.41 of the Notification No 12/2017 -Central Tax (Rate), dated 28/06/2017) as amended by Notification No. 32/2017 – Central Tax (Rate), dated 13/10/2017. Therefore, they are not entitled for the benefits of the said Notification (as amended) and the activity of long term lease is liable for levy of GST.
A careful perusal of the Notification reveals that it does not intend to extend a general exemption to all kinds of long-term lease by any Government Authority. If that were the case, then the statute would not have used a specific term “…industrial plots or plots for development of infrastructure for financial business.”
Therefore, to decide the issue, it is essential to understand what is an ‘industrial plot’ and ‘financial business.’ As the term “industrial plot” has not been defined in the GST Act, an inference must be drawn from the common meaning of the said term. Accordingly, this authority examined this issue in general parlance. An Industrial area in Goa is statutorily defined by the Goa Industrial Development Act, 1965. So it is evident the primary agency entrusted for development of Industrial plots in Goa is the Goa Industrial Development Corporation and not the Appellant.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
