TMI Blog2020 (10) TMI 806X X X X Extracts X X X X X X X X Extracts X X X X ..... advance ruling has specified that the applicant can only be seek a ruling about the supplies undertaken or proposed to be undertaken by the applicant i.e. the applicant is the supplier in the supply in question. Accordingly, all the question the applicant can ask as specified in Section 97 pertain only to him. Specifically, Section 97 (2) (d) pertains to the admissibility of Input Tax Credit of tax paid of deemed to have been paid by the applicant (i.e. applicant as per the Act). This question would deal with the admissibility of ITC on all the inputs/input services/ capital goods etc. used by the applicant (i.e. applicant as per the Act) to make or propose to make the supply in question. Therefore, the question does not pertain to the recipient of the supply in question as contended by M/s Erode Infrastructures nor is there any dichotomy in stating that that as per the Act recipient of the supply in question cannot seek advance ruling under the Act. Accordingly, the application is not admitted and rejected without going into merits. Application dismissed being not admitted. - TN/31/AAR/2020 - - - Dated:- 12-5-2020 - MS. MANASA GANGOTRI KATA, IRS, AND THIRU KURINJI SELVAA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the usage of railway passengers and return of the asset on the expiry of lease. The offer by RLDA involves the payment ₹ 3,08,27,800/- towards upfront Lease premium and ₹ 7,80,000/- towards annual rent. 2.2 The applicant has stated that as per notification issued by government of India Ministry of Finance (Department of Revenue) in No. 41/2016- Service Tax Dated 22nd September 2016, the Service Tax is exempted for long term lease of industrial plots provided by State Government Industrial Development Corporations/Undertaking to Industrial Units under Section 66 B of the said Act, as is levied on the one time upfront amount (called as premium, salami, cost, price, development charges or by any other name) payable for such lease. The above exemption in Service Tax has been extended in GST also vide Notification No. 12/2017 - Central Tax (Rate) dated 28th June 2017. The GST Council in its 22.to meeting held on 6th Oct 2017 has exempted GST on the One Time Upfront amounts for the Government Infrastructure projects on long term lease of 30 years or more by way of notification No. 32/2017 - Central Tax Rate dated 13.10.2017. GST for Infrastructure Development projects on l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itten submission, the applicant has reiterated their submissions made in their application. In the Notes to written submission, the applicant has stated as follows: As far as the applicability of application for advance ruling is concerned though they are recipient of services from the Central Government Entity RLDA, they are also eligible to apply for rulings for the following stated reasons:- The word in relation to the supply of goods or services or both in Section 95(a) of CGST Act 2017, can be interpreted to include, supply of both inward supply and outward supply. The inward supply or outward supply are specifically defined in the Act which are two parts of the supply. As per section 97 (2) (d) of the CGST Act 2017 applicant can ask question or administering of input tax credit of tax paid or deemed to have been paid. In respect of the above questions applicable to inward supply, where the receiver of goods or services or both alone can ask for his inward supply Hence, the cogent reading of sections 95(a) and 97(2) of the CGST Act 2017, doesn t deny the application of AAR by the person who is receiving the goods or services or both as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (P) Ltd., which is a developer in this MFC development Project is a supplier of services to the RLDA by way of developing the Multi-Functional Complex. Based on the above said facts and circumstances, Erode Infrastructures (P) Ltd., a supplier of services can be an Applicant to apply to the Authority for Advance Ruling under Section 97 of GST Act and can seek clarification regarding the applicability of the Notification No.32/2017 CT (RATE) which exempts the GST on upfront premium amounts for long term lease of land for 30 Years or more. The applicant requested one more opportunity to be heard in person. 5. The applicant was accordingly extended another opportunity to be heard on 27.03.2020. The applicant vide their mail dated 18th March 2020 stated that they had made detailed written submission and requested to waive the personal hearing. 6.1 The applicant is under the administrative control of State Tax and the said authority has opined that the lease premium payable by M/s. Erode infrastructures Private Limited to Rail Land Development Authority for long term lease of the 3140 sqm railway land plot for 45 years for the purpose of development of Multi-Functional ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... After the tenure of the lease, the facilities are to be given back to RLDA. It is clear from the above that RLDA is leasing out the land belonging to them/Indian Railways to the applicant to be used as per the terms and conditions specified in the Lease Agreement. Section 2(105) of the CGST/TNGST Act states: (105) supplier in relation to any goods or services or both, shall mean the person supplying the said goods or services or both and shall include an agent acting as such on behalf of such supplier in relation to the goods or services or both supplied; Supply is defined under Section 7 of the CGST Act 2017 and the same is reproduced below for reference: 7. (1) For the purposes of this Act, the expression supply includes- (a) all forms of supply of goods or services or both such as sale, transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business; In the instant case, the lease agreement for a consideration of an upfront payment and annual rent to lease out the property by RLDA for the construction of Multipurpose complex facilitating the railway cons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om above that Section 95(a) by definition advance ruling has specified that the applicant can only be seek a ruling about the supplies undertaken or proposed to be undertaken by the applicant i.e. the applicant is the supplier in the supply in question. Accordingly, all the question the applicant can ask as specified in Section 97 pertain only to him. Specifically, Section 97 (2) (d) pertains to the admissibility of Input Tax Credit of tax paid of deemed to have been paid by the applicant (i.e. applicant as per the Act). This question would deal with the admissibility of ITC on all the inputs/input services/ capital goods etc. used by the applicant (i.e. applicant as per the Act) to make or propose to make the supply in question. Therefore, the question does not pertain to the recipient of the supply in question as contended by M/s Erode Infrastructures nor is there any dichotomy in stating that that as per the Act recipient of the supply in question cannot seek advance ruling under the Act. Accordingly, the application is not admitted and rejected without going into merits. In view of the foregoing, we rule an under RULING The Application for Advance Ruling filed by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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