TaxTMI 
TaxTMI 
2020 (10) TMI 806
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....'Applicant') is registered under the GST Act 2017 vide GSTIN No.33AAECE7680D1ZR. The applicant has sought Advance Ruling on the following question: Whether upfront lease amount paid to M/s. RLDA for the development of Multi-functional complex (Operational building) at Erode railway Junction for Long term lease for 45 years is exempt under GST The Applicant has submitted the copy of application in Form GST ARA - 01 and also submitted a copy of Challan evidencing payment of application fees of Rs. 5,000/- each under sub-rule (1) of Rule 104 of CGST rules 2017 and SGST Rules 2017. 2.1 The applicant has stated that they are incorporated with the sole objective of development of "Multifunctional Complex" at Erode Railway Station, a project of Rail Land Development Authority for furtherance of business. The applicant are a successful bidder from Rail Land Development Authority for "Erode MFC" vide their Letter of Acceptance (LOA) dated 13.06.2017 in the name of M/s. Thirukumaran HP Gas,, Agency. The applicant has stated that the Rail Land Development Authority (RLDA) is constituted by the Central government u/s 4A of Railways Act 1989 and authorized by the Ministry of Railways to ide....
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....012; copy of relied on Notifications and Circulars; copy of the Advance Ruling of GGL Hotel and Resort Company Ltd in Appeal Case No. 01 / WBAAAR/Appeal/2019 dated 06.02.2019 = 2019 (5) TMI 964 - APPELLATE AUTHORITY FOR ADVANCE RULING, WEST BENGAL; Copy of the Advance Ruling of Yamuna Express Way Industrial Development Authority in AAR /9 of 2018 dated 06.06.2018 = 2018 (10) TMI 341 - AUTHORITY FOR ADVANCE RULING - UTTAR PRADESH; Master Plan of Erode Local Planning Area. They stated that in this case, the land belongs to Railways which is to be developed by RLDA, and they have won the tender and letter of acceptance is signed, but the contract yet to be signed. The issue is regarding leasing of commercial land for 45 years by the applicant to develop into commercial space for which they have to pay an upfront premium along with annual rent. The ownership of the commercial complex (which will be further leased out) will rest with railways. They stated that they are eligible for exemption at Sl.No. 41 of Notification No. 12/2017 as amended as they state that commercial activity covers industrial or financial business. They stated that they are also doing a supply of construction of c....
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....er opportunity and was heard on 29.01.2020. The Authorised representative appeared on 29.01.2020. They stated that they are also a supplier in this present transaction even though no separate consideration is given in the tender. They stated that as per section 97 (2) (d), admissibility of ITC is also covered and as they are also suppliers, the application should be admissible. The invoice for the premium was raised after the amendment in Notification No. 32/2017. They stated that they are developers of industrial area as Railways land is classified as Industrial Area. However, they stated that they will clarify from RLDA whether the development which they are now doing, (to provide amenities to passenger such as shops, Banks, ATM etc) constitutes an Industrial Area from the Nodal Office as per Para 21 of the tender(Part IV). They undertook to submit the same within 1 month. 4.2 The applicant filed the written submission vide their letter dated 27.02.2020. In the submission they have stated as follows: * Their role in the development of Multi-functional Complex at Erode Railway junction is as a "Developer" of the project. To establish this fact, they relied upon the Articles and....
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....for a period of 45 years. For this, the bidder is required to pay an upfront lease amount and also pay an annual rent to RLDA. The applicant is before us seeking ruling on Whether the Upfront lease amount paid to M/s. RLDA for the development of Multi-functional complex (Operational building) at Erode railway Junction for Long term lease for 45 years is exempt under GST In the case at hand, the applicant has sought clarification on the tax liability on the services specified in the agreement. It is the contention of the applicant that the advance ruling can be sought by them on the said question as they also supply services and as per the definition of advance ruling, the ruling can be sought in relation to the supply of goods or services and it does not stipulate that only supplier has to seek the ruling. 8.1 It is seen from the agreement signed between the applicant and RLDA that it is a Lease Agreement with RLDA as 'Lessor' and the applicant as 'Lessee' and the consideration is the upfront payment along with the annual rennet that has to be paid by the lessee i.e. the applicant. The agreement also specifies the terms and conditions for which the leased land should be used wh....
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.... section (1) of section 100, in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant: From the above, it is evident that 'advance ruling' are decisions on questions specified in sub-section 97 (2) of the Act in relation to the supply of goods or services undertaken or proposed to be undertaken by the applicant seeking the same. Hence, supplies undertaken or proposed to be undertaken by the applicant alone are covered under the advance ruling as per Section 95(a) of the Act. In the instant case the applicant is not making the supply but RLDA. Accordingly, the application is not admitted and rejected without going into merits. 8.3 In light of above, the contention of the applicant that advance ruling can be given for the supplies where the applicant is the recipient is incorrect. The applicant has also contented that one of the questions permitted as per Section 97 (2) on admissibility of Input Tax Credit means that the recipient can seek a ruling on the admissibility of ITC for the supply. Section 97(2) states: (2) The question on which the advance ruling is sought under this Act, shall be in respect of,- (a) clas....