GST on lease premium

[jitendra jain]

Dear sir/madam

In Maharashtra government given us a lease land for a period of 60 years + 39 years extendable further for the purpose of setting up way side amenity on express highway.

my question is when lease deed happened there is a GST applicable on lease premium?

it is a 60 tear plus lease deed allotted by government, and we are first buyers private limited company. Maharashtra govt is asking GST on this premium amount but they failed to clarify under which section. we do study some old case law where above 30 year + lease (long lease) no gst is applicable.

please clear the same under which law applicable or exempt.

thanks & regards.

Jain

 

 

 

AI Summary

GST Applicability for 60-Year Government Land Lease Challenged: Seeking Clarity on Premium Taxation and Potential Exemptions A private company seeks clarification on GST applicability for a 60-year lease of government land for a highway amenity project. The company questions the government's demand for GST on lease premium, referencing potential exemptions for long-term leases. A respondent raises additional complexity by suggesting potential reverse charge mechanism might apply to government property leasing.