GST exemption conditions tightened; joint liability imposed on lessors and subsequent owners for breach of land use terms. The amendment conditions the long term lease exemption on leased plots being used for the allotted industrial or financial purpose and on State Government monitoring. It mandates that lease and subsequent sale agreements disclose that State tax was exempted on the long term lease and bind parties to compliance. In case of violation or change of land use, the original lessor, original lessee and any subsequent lessee, buyer or owner are jointly and severally liable to pay the State tax that would have been payable on the upfront amount for the lease, with applicable interest and penalty.
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Provisions expressly mentioned in the judgment/order text.
GST exemption conditions tightened; joint liability imposed on lessors and subsequent owners for breach of land use terms.
The amendment conditions the long term lease exemption on leased plots being used for the allotted industrial or financial purpose and on State Government monitoring. It mandates that lease and subsequent sale agreements disclose that State tax was exempted on the long term lease and bind parties to compliance. In case of violation or change of land use, the original lessor, original lessee and any subsequent lessee, buyer or owner are jointly and severally liable to pay the State tax that would have been payable on the upfront amount for the lease, with applicable interest and penalty.
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