TaxTMI 
TaxTMI 
2021 (12) TMI 61
X X X X Extracts X X X X
X X X X Extracts X X X X
....ving a GST registration with GSTIN 23AAALG0750FIZQ. 2. The provisions of the CGST Act and MPGST Act are identical, except for certain provisions. Therefore, unless a specific mention of the dissimilar provision is made, a reference to the CGST Act would also mean a reference to the same provision under the MPGST Act. Further, henceforth, for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST or MP GST Act would be mentioned as being under the GST Act. 3. BRIEF FACTS OF THE CASE - 3.1. Gwalior Development Authority is the company that provides residential land on lease is located at Ravinagar in the Gwalior district of the state of Madhya Pradesh (474002). 4. QUESTION RAISED BEFORE THE AUTHORITY -....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s charged by the promoter from the independent buyers nearest to the date on which such development rights or FSI is transferred to the promoter. 18% "Computation of GST on Development Rights - Land Owner share of Units - Launch Price (JD Date)- 18% or - Carpet Area of LO share- Launch price per unit of Carpet Area- 18% 6. RECORD OF PERSONAL HEARING - 6.1. Mr. Arvind Gaur, Chartered Accountant and the jurisdictional officer (SGST) appeared for personal hearing through virtual hearing. Mr. Arvind reiterated the submissions already made in the application, and attached additional submissions as follows: 6.2. Applicant states that as per notification no. 12/2017 and relevant provisions of GST Act amount received as lease premium lease....
X X X X Extracts X X X X
X X X X Extracts X X X X
....essor, the transferee is called the lessee, the price is called the premium, and the money, share, service or other thing to be so rendered is called the rent." The important facts that the provision states, which are germane to the discussion at hand, are - - A lease of immoveable property is a transfer of a right to enjoy such property; - The consideration may be in the form of premium or rent or both; - Price is called the Premium; - The money, share, service or other thing to be so rendered is called the rent. 7.1.3 A combined reading of the provisions of the GST Act and the Transfer of Property Act shows that granting lease of an immovable property is the transfer of a right for a consideration, which may be in the form of a ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....jagopal and anr (AIR 2009 SC 2122) has observed that 'Sale' is defined as a transfer of ownership for a price. In a sale there is an absolute transfer of all rights in the properties sold. No rights are left with the transferor. In the case of a Lease however the transfer of rights are not total or absolute. Thus, in light of the above ruling of the Apex Court. Lease cannot be equated with Sale, even if the lease is in perpetuity. 7.1.6 It may be also be argued that one-time lease premium is different and distinct from lease rent and that it is not a periodical payment, but a one time. In this regard, it has to be noted that the nature of the transaction does not depend on the nature of the consideration. Even if the consideration....
X X X X Extracts X X X X
X X X X Extracts X X X X
....n of the applicable law and facts of the case which has led the Applicant to believe that GST on lease of residential plot of land is exempt. The applicant has made a cryptic statement that some of the customers of the applicant have requested that GST may not be collected on the premium for lease of land. 7.2.2 In the given facts of the case, even though the applicant has not stated the provision of law or the Entry No. of Notification No. 12/2017-Central Tax (Rate), which has led the applicant or the applicant's customers to believe that GST is not payable on the lease of residential land. We believe that it shall be injustice if the question remains unanswered because of the short comings in the application. Therefore. in the intere....