GST exemption on the upfront amount payable in for long term lease of plots, under Notification 12/2017-Central Tax (R) S.No. 41 dated 28.06.2017. - GST - States - Circular No. 71/2019-TNGST

GOVERNMENT OF TAMIL NADU COMMERCIAL TAXES DEPARTMENT OFFICE OF THE COMMISSIONER OF STATE TAX EZHILAGAM, CHENNAI-600 005 PRESENT: DR. T.V. SOMANATHAN, I.A.S., COMMISSIONER OF STATE TAX Dated: 02.05.2019 Circular No. 71/2019-TNGST (RC No.26/2019/A1/Taxation) Sub: GST exemption on the upfront amount payable in for long term lease of plots, under Notification 12/2017-Central Tax (R) S.No. 41 dated 28.06.2017 -reg. Representations have been received seeking clarification regarding admissibility of 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 Sl. No. 41 of Notification No. II(2)/CTR/532(d-15)/2017 dated 29-06-2017 issued by Tamil Nadu read with Central Notification 12/2017-Central Tax (Rate) dated 28.06.2017, 2. The matter has been examined. The entry at S. No.41 of Notification No. II(2)/CTR/532(d-15)/2017 dated 29-06-2017 read with Central Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 reads as under: Sl.No. Chapter Section, Heading, Group of Service Code (Tariff) Description of Services Rate (per cent.) Conditions (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 long 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 long term lease (of thirty years, or more) of industrial plots or plots for development of infrastructure for financial business under Entry No. 41 of Notification No. II(2)/CTR/532(d-15)/2017, dated 29-06-2017 read with Central Notification 12/2017 - Central Tax (Rate) dated 28,06.2017 is admissible irrespective of whether such upfront amount is payable or paid in one or more installments, provided the amount is determined upfront. Sd/-T.V. Somanathan Commissioner of State Tax