2018 (11) TMI 1076

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....on Limited is state Government owned Industrial Development undertaking which is mainly engaged in providing (30 years or more) lease of Industrial Plots against one time upfront amount (Called as premium, salami, cost, price, development charges or by any other name) to the industrial units, which by virtue of Point No. 41 of the Notification No. 12/2017 - Central Tax (Rate), dated 28.06.2017 is exempt from GST. The Authority for Advance Ruling in the Union Territory of Chandigarh was constituted vide Notification No. 14/2018-Union Territory Tax dated 8tn October, 2018 issued by the Under Secretary to the Govt, of India. For admission & hearing u/s 98 of the CGST Act, 2017 & UTGST Act, 2017, notice was issued to the Applicant on 11.1....

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....ich by virtue of Point No. 41 of the Notification No. 12/2017 - Central Tax (Rate), dated 28.06.2017 is exempt from GST. Further, the Applicant also provides ancillary services relating to the Industrial Plots by the following names:- *Transfer Fees - Fees charged for the purpose of transfer of Industrial Plot from one person to another. *Extension Fees - Fees charged for delay in the commencement of construction and production. *Conversion Fees- Fees charged for the conversion of leasehold plot into freehold. *Processing Fees - Fees charged for the purpose of transfer of Industrial Plots within the family, change in constitution of ownership/shareholding pattern permission for sale of freehold plot. *Bifurcation Fees - Fe....

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....tation of the Applicant:- As per applicant, these ancillary services are inter-linked with the service of providing lease of Industrial Plots against one time upfront amount (Called as premium, salami, cost, price, development charges or by any other name) to the industrial units, which by virtue of Point No. 41 of the Notification No. 12/2017 -Central Tax (Rate), dated 28.06.2017 is exempt from GST. Therefore these ancillary services should also be exempt from GST. Observation:- The "Description of Goods" in entry No. 41 in Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 was substituted vide Notification No. 32/2017-Central Tax (Rate) dated 13.10.2017 and the text of the same is reproduced below: "One time upfront ....

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....rvices rendered by the applicant as enumerated by them in their application (Sr. No. 14) are not mentioned therein and thus, appear to be not covered under the said exemption entry or any other entry in Notification No. 12/2017-CT(R) for that matter and thus appear to be liable for payment of CGST and UTGST. These services are, therefore, covered under "Other Miscellaneous services"-Group 99979 [scheme of classification of services in the Annexure to Notification No.11/2017- Tax (Rate) dated 28.06.2017] with CGST rate of 9% as provided at Sr. No. 35 of Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 (as amended) with equal rate (9%) of UTGST as per entry No. 35 in' Notification No. 11/2017-Union Territory Tax (Rate) dated 2....