Rate of GST on sub lease of long term right

[Ramesh Panda]

Sir,

What will be the rate of GST on upfront amount received on sub leasing of industrial plot alloted by State Govt. by the original lease holder for rest of the lease period i.e. more than 30 years. can it be exempt under Notification No. 12/2017-CT(R) under heading 9972.

AI Summary

GST Exemption Not Applicable for Subleasing Industrial Plot Over 30 Years, Per Notification No. 12/2017-CT(R) Heading 9972. A query was raised regarding the Goods and Services Tax (GST) rate applicable to the upfront amount received from subleasing an industrial plot, originally allotted by the State Government, for a period exceeding 30 years. The question asked if this could be exempt under Notification No. 12/2017-CT(R) under heading 9972. The response clarified that the exemption applies only to services provided by the state government to industrial units, not to services provided by a lessee to another party, hence the exemption is not applicable in this case.