TMI Blog2021 (10) TMI 1061X X X X Extracts X X X X X X X X Extracts X X X X ..... he TSIIC ltd executes an agreement for sale of land with the applicant and collects the full consideration for the cost of land but sets condition to execute the sale deed to transfer the title only after the applicant completes infrastructure development in the land. The perusal of the contract entered by the applicant with the TSIIC ltd clearly indicates that the property in land will be transferred to the applicant only when the applicant completes the development of infrastructure of schedule land. However, this clause in the agreement appears to have been made to meet the larger objective enumerated in industrial policy of the State. Though there is a contract for development of the land the other (2) conditions enumerated above are not fulfilled i.e., transfer of property in goods from the applicant to the TSIIC ltd and payment of consideration by TSIIC ltd to the applicant. The examination of the agreement between the applicant and one individual allottee M/s. Beaver tracks pvt ltd reveals that the applicant has taken up development of infrastructure as per the conditions of allotment set by TSIIC. And that M/s. Beaver tracks pvt ltd will get the title of the land only ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reference to the CGST Act would also mean a reference to the same provision under the TGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, the expression GST Act would be a common reference to both CGST Act and TGST Act. 3. It is observed that the applicant enclosed copies of challans as proof of payment of ₹ 5,000/- for SGST and ₹ 5000/- for CGST towards the fee for Advance Ruling. The Applicant has declared that the questions raised in the application have neither been decided by nor are pending before any authority under any provisions of the GST Act. The application is therefore, admitted. 4. Brief facts of the case: 1. TIF Integrated Industrial Parks Pvt. Ltd., (TIFIIP P Ltd., applicant for short), i.e., the applicant has stated that it is a company formed by industrialists as required by the Telangana State Industrial Infrastructure Corporation Limited (TSIIC) as a special purpose vehicle (SPV) representing the member industrialists with an objective of providing industrial infrastructure by development of land acquired by TSIIC. It is informed by the applicant that TSIIC issued final allotment letter conforming all ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lopment. Further, the applicant will transfer the title in the development plots only after commencement of commercial production by the members. 2. The applicant has submitted written arguments along with agreement for sale deed of land between zonal manager, TSIIC and himself and also a sample agreement for sale deed of land between himself and one manufacturing unit M/s. Beaver Tracks Pvt. Ltd. 3. That the applicant is desirous to ascertain from the AAR the following: a. Whether the transaction of sale of developed plot between himself and his member falls within the ambit of GST. b. Whether the infrastructure development undertaken by the applicant qualifies as supply under GST. 7. Discussions Findings: The applicant have sample documentary evidence in form of sale agreement between itself as buyer and TSIIC as seller and then between itself as seller and an industrialist as buyer. The contention of the applicant regarding the nature of their business is as follows: a) TSIIC transfers the possession of the acquired land by way of a sale agreement to the applicant for development of the land in order to allot it to various industrialists under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tain activities from taxation even though they are goods or services as per the definition in the CGST/SGST Acts. Accordingly, activities or transactions relating to any goods or services finding a mention in schedule III to the CGST act are treated as neither supply of goods nor supply of services. The paragraph 5 of Schedule III includes the sale of land as exempt from levy of GST subject to clause (b) of paragraph 5 of schedule II. Paragraph 5 of Schedule II deals with levy of tax on immovable property involving the construction of a complex or a building or any civil structure intended for sale. Therefore the exclusive sale of land is exempt from GST except when sold along with a constructed complex or a building or a civil structure. Further the Clause b of Paragraph 6 of Schedule II deems the composite supply of works contract as supply of services. The service of works contract is defined in Clause (119) of Section 2 of CGST Act as follows: Works contract means a contract for building, construction, fabrication, completion, erection, installation, fitting out, improvement, modification, repair, maintenance, renovation, alteration or commissioning of any immova ..... X X X X Extracts X X X X X X X X Extracts X X X X
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