GST exemption on the upfront amount payable in installments for long term lease of plots, under State Government's Notification No. S. No. 41 dated 29.06.2017. - GST - States - GST Circular No. 25/2019 - F.17 (134) ACCT/GST/2017/4518

Government of Rajasthan Commercial Tax Department F.17 (134) ACCT/GST/2017/4518 Date: 02-05-2019 GST Circular No. 25/2019 All Joint Commissioner (Adm.), Commercial Taxes Department, . Subject: GST exemption on the upfront amount payable in installments for long term lease of plots, under State Government s Notification No. S. No. 41 dated 29.06.2017. Representations have been received seeking clarification regarding admissibility o! GST exemption on the upfront amount which is determined upfront but is paid or payable in installments for long term (thirty years, or more) lease of industrial plots or plots for development of financial infrastructure under State Government s Notification No. F.12(56)FD/Tax/2017-Pt-I-50 S.No. 41 dated 29.06.2017. 2. The matter has been examined. The entry at S. No.41 of Notification No. F.12(56)FD/Tax/2017-Pt-I-50 dated 29.06.2017 reads as under: Sl. No. Chapter, Section, Heading, Group or Service Code (Tariff) Description of Services Rate (per cent.) Condition (1) (2) (3) (4) (5) 41 Heading 9972 Upfront amount (called as premium, salami, cost, price, development charges or by any other name) payable in respect of service by way of granting of Ion term lease of thirty years, or more) of industrial plots or plots for development of infrastructure for financial business, provided by the State Government Industrial Development Corporations or Undertakings or by any other entity having 50 per cent. or more ownership of Central Government, State Government, Union territory to the industrial units or the developers in any industrial or financial business area. NIL NIL 3. It is hereby clarified that GST exemption on the upfront amount (called as premium, salami, cost, price, development charges or by any other name) payable for lease (of thirty years, or more) of industrial plots or plots for development of infrastructure for financial business under Entry No. 41 of Exemption Notification No. F.12(56)FD/Tax/2017-Pt-I-50 dated 29.06.2017 is admissible irrespective of whether such upfront amount is payable or paid in one or more instalments, provided the amount is determined upfront. (Dr. Preetam B. Yashvant) Commissioner State Tax, Rajasthan, Jaipur Date: 02-05-2019 F.17 (134) ACCT/GST/2017/4519