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 on lease premium: upfront lease premiums treated as taxable services unless narrow statutory exemption conditions apply.
Upfront lease premiums for long term government allotments are generally taxable because Schedule II treats any lease or licence to occupy land as a supply of services, so one time premiums constitute taxable consideration unless a specific notification exemption applies. The statutory exemption is narrowly conditional-limited to government lessors, lessees who are industrial units or developers, development of industrial or financial infrastructure, and notified areas-so commercial uses like wayside amenities to a private company will typically not qualify and the premium will attract GST.