TMI Blog2021 (12) TMI 61X X X X Extracts X X X X X X X X Extracts X X X X ..... ential dwelling for use as residence. It does not refer to land whether as part of the residential dwelling or otherwise. There are many instances, where the legislature, where it intends a separate dispensation for land or specific treatment of land uses the phrase building and land appurtenant thereto . No such phrase has been found in Entry No. 12. In the case of a single unit built on a parcel of land, the land is part of the building and in the case of multiple residential units on a parcel of land, there is share of undivided land that is part of each flat - The building constructed is not considered while decided on the renewal of the lease. Thus, in the case of residential building constructed by the lessee on leased land, it is always the lease of the land that is renewed. The building does not attain the character of a leasehold property. Since the entry grants the exemption to a leased / rented residential dwelling, the benefit is therefore restricted to a residential building which has been let out and does not extend to a parcel of land which has been taken on lease for construction of a residential dwelling on the said land. - Case No.02/2021 Order No. 09/2021 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment, tire protection and fire safety requirements, social infrastructure such as educational health and other public amenities or any other work in a project for its benefit, as per sanctioned plans. It is Notification No. 04/2019 dated 01.04.2019 from Residential/Commercial/Plot/Building on GST Rate of Tax 18% it has been determined description as follows: Value of Supply ( Development Rights) - Value of similar apartments charged by the promoter from the independent buyers nearest to the date on which such development rights or FSI is transferred to the promoter. 18% Computation of GST on Development Rights - Land Owner share of Units - Launch Price (JD Date)- 18% or - Carpet Area of LO share- Launch price per unit of Carpet Area- 18% 6. RECORD OF PERSONAL HEARING - 6.1. Mr. Arvind Gaur, Chartered Accountant and the jurisdictional officer (SGST) appeared for personal hearing through virtual hearing. Mr. Arvind reiterated the submissions already made in the application, and attached additional submissions as follows: 6.2. Applicant states that as per notification no. 12/2017 and relevant provisions of GST Act amount received as l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ply of service. 7.1.4 It has been argued that since land has been defined to include benefits arising out of land and right to lease is a benefit arising out of land consequently is land itself, leasing of Land is not taxable, for sale of land is out of the purview of GST Act. In this regard. it may be noted that the definitions of land including the benefits that arise out of land are found in Acts which have been enacted to achieve a specific purpose. For example, Section 3(a) of Land Acquisition Act, 1894 The expression 'land' includes benefits that arise out of land and things attached to earth or permanently fastened to anything attached to the earth Section 3(4) of Bombay Land Revenue Code, 1879 land' includes benefits to arise out of land and things attached to the earth or permanently fastened to anything attached to the earth and also shares in or charges on the revenue or rent of village or other defined portions of territory However, under the General Clause Act. 1897, states as under in this regard: Section 3(26) 'Immovable property' shall include land, benefits to arise out of land, and things attached to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of residential land: 7.2.1 In the Application for the Advance Ruling, the applicant has failed to state its interpretation of the applicable law and facts of the case which has led the Applicant to believe that GST on lease of residential plot of land is exempt. The applicant has made a cryptic statement that some of the customers of the applicant have requested that GST may not be collected on the premium for lease of land. 7.2.2 In the given facts of the case, even though the applicant has not stated the provision of law or the Entry No. of Notification No. 12/2017-Central Tax (Rate), which has led the applicant or the applicant's customers to believe that GST is not payable on the lease of residential land. We believe that it shall be injustice if the question remains unanswered because of the short comings in the application. Therefore. in the interest of justice, we are proceeding on premise that the applicant is seeking relief under Entry No, 12 of the Notification. 7.2.3 It is well accepted that in the case of ambiguity in a provision of law, the interpretation shall be liberal. However, in the case of an exemption notification, the interpretation shall be stri ..... X X X X Extracts X X X X X X X X Extracts X X X X
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