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TMI Blog2024 (2) TMI 707X X X X Extracts X X X X X X X X Extracts X X X X ..... e Limited. A-237, Okhla Industrial complex Phase -I, New Delhi, 110020, which has originally been allotted by Noida Authority under the 99 years lease deeds and duly registered under GST Law i.e. under the Jurisdiction of Assistant Commissioner, Gautambudha Nagar (A), Sector-4, SGST Department, Gautambudha Nagar. 2. The applicant has submitted an application for Advance Ruling dated 16.03.2023 enclosing dully filled Form ARA-01 (the application form for Advance Ruling) along with annexure and attachments. The applicant in his application has sought advance ruling on following question- 1. Under the GST provisions, whether above activity relating to Sale of leasehold land and also to obtain permission for such sale would be taxable? 3. A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e for a consideration by a person in the course or furtherance of business except activities notified under Schedule-Ill of the CGST Act. Under Schedule-III, 'sale of land' has been specifically included. Thus, sale of land is not in the ambit of GST. c. As per Schedule-(2)(a) of the CGST Act, 2017, lease of land activity is a supply of service. Long term lease of land is also a kind of lease where lessee holds the possession of property for a long period. d. Further, it is pertinent to mention here that under The Income Tax Act, 1961 as clarified by the Central Board of Direct Taxes vide Circular No. 35/16 dated 13.10.16, long term lease of land constitutes character of 'deemed sale' meaning thereby it is a sale. In our ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsidered as transfer of property and has been adjudicated on similar principle. However, there is no specific provision in GST to deem long term lease as sale. Hence, the whole issue is under dispute and pending in different courts of the country. f. Further, to elaborate the issue it is also relevant to mention that under notification No. 12/17-Central Tax (Rate) dated 28.06.17, Sl. No. 41, leasing of industrial plot by Government Industrial Development Corporation or Undertakings to industrial units for a period of thirty years or more is exempted from GST. The transfer of industrial plot in current case is from one industrial unit (seller) to another industrial unit (buyer) intended for industrial purpose only. However, to affect such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt and observed that the applicant has ticked following issues on which advance ruling required- (l) Applicability of a notification issued under the provisions of the Act.; 10. We would like to examine whether the issue raised in the application is squarely covered under Section 97(2) of the CGST Act 2017 or not. For this we would like to examine this matter in light of definitions of Advance Ruling under section 95 of the CGST Act 2017 and the same is reproduced as under: Section 95. Definitions of Advance Ruling." In this Chapter, unless the context otherwise requires," (a) "advance ruling means a decision provided by the Authority or the Appellate Authority to an applicant on matters or on questions specified in sub-section (2) o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of services for a consideration whether or not in the course or furtherance of business; and (c) the activities specified in Schedule I, made or agreed to be made without a consideration, The conjoint reading of both the above paras 10 and 11, it clarifies that activities of the taxpayer being a recipient, are not related to the supply being undertaken or proposed to be undertaken by him. 12. Further, reference needs to be made to section 103 of CGST Act, 2017 which provides for applicability of the advance ruling. Clause (a) of sub-section (l) of the said section clearly provides that the advance ruling is binding only upon the applicant. 13. We find after examining the AAR application dated 16.03.2023 (Received in office on 03.07.202 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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