TaxTMI 
TaxTMI 
whether gst is applicable on long term lease of immovable property where contract for lease was entered pre-gst amount received under pre-gst and term of lease continued under gst also
long term lease of immovable property
28 Aug 2018 
7 Replies 
2104 Views Asked by
GST applicability on long-term lease continues where supply occurs after appointed day despite pre-GST contract.
GST applies to periods of a long term lease supplied on or after the appointed day even if the contract and lump sum payment were made pre GST; the operative test is time of supply. Transition provisions (section 142) make supplies under pre GST contracts liable to GST for post appointed day performance, subject to reduction where tax was leviable or paid under the prior law, and allocation issues may arise when consideration was received earlier. (AI Summary)
GST applies to periods of a long term lease supplied on or after the appointed day even if the contract and lump sum payment were made pre GST; the operative test is time of supply. Transition provisions (section 142) make supplies under pre GST contracts liable to GST for post appointed day performance, subject to reduction where tax was leviable or paid under the prior law, and allocation issues may arise when consideration was received earlier. (AI Summary)