In re Remarkable Industries Private Limited (GST AAR Uttar Pradesh)
The Authority for Advance Ruling (AAR), Uttar Pradesh, deliberated on a case presented by Remarkable Industries Private Limited regarding the Goods and Services Tax (GST) implications on the transfer of leasehold rights. The case pertains to the sale of an industrial plot under a 99-year lease deed originally allotted by the Noida Authority. The applicant sought clarity on the GST treatment of such a transfer, specifically questioning the taxability of the transaction, Input Tax Credit (ITC) eligibility for the buyer, and the applicability of certain GST notifications.
Detailed Analysis
1. Background and Request for Clarification
Remarkable Industries Private Limited aimed to transfer its leasehold rights of an industrial plot to S.K Industries. The plot in question was under a 99-year lease from the Noida Authority. The applicant raised three primary queries:
- The GST implications on the sale/transfer of leasehold land and the need for permission for such a sale.
- The taxability of the upfront premium as a cost of land and building.
- The eligibility of the buyer for ITC and the applicability of Notification No. 12/2017, specifically serial no. 41 under heading 9972.
2. AAR’s Ruling and Interpretation
The AAR analyzed the queries based on the provisions of the CGST Act, 2017, and related rules. The findings were as follows:
