TaxTMI 
TaxTMI 
2023 (12) TMI 1269
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....y). The applicant had submitted an E-bid for development of commercial complex/Project on Plot No. 1, Sector 94, NOIDA. Their E-bid was accepted, on leasehold basis for a period of 90 years from the date of lease deed and they were asked to deposit 30% of the Premium money within 60 days of issuance of allotment letter. In pursuance of the allotment, NOIDA Authority executed a Lease Deed in favour of the Applicant was allotted a plot of land for development of infrastructure for financial business including Commercial Complex for commercial activities such as shopping malls, showrooms, retail outlets, hotels, restaurants, offices and such other commercial uses. 3. The applicant has sought advance ruling in respect of the following question: i) Whether the Applicant is liable to pay tax under Reverse Charge Mechanism (RCM) on the upfront amount charged by the NOIDA Authority (as lease premium) in respect of allotment of plots to the Applicant by way of granting of long term lease of ninety years, for development of commercial infrastructure in an industrial township? ii) Whether the long-term lease is in the nature of sale of land, hence outside the scope of sup....
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....tral/State Government, Union Territory or local authority. Being a statutory authority constituted under Section 3 of the UPIAD Act, it is an authority established by the State Government under a statute, it does not qualify as 'Government'. It is also not covered under the definition of 'Local Authority' as per clause (69) of section 2 of the CGST Act. • That the Hon'ble Supreme Court has laid down certain attributes and characteristics of a local authority which are as follows:- (i) It must have a separate legal existence as a corporate body; (ii) It must not be a mere governmental agency but a legally independent entity; (iii) It must function in a defined area and must ordinarily be elected wholly or partly, directly or indirectly by the inhabitants of the area; (iv) It must enjoy a certain degree of autonomy, which, though not complete, must be appreciable; (v) the statute must entrust the authority with such governmental functions and duties as are usually entrusted to a municipal body for providing such amenities, as health and education services, water and sewerage, town planning and development, road....
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....nd therefore no GST should be levied on allotment of plot on Long Term Lease basis. • The applicant further added that upfront amount payable in respect of service by way of granting of long term lease is exempt from GST vide SI. No. 41 of Notification No 12/2017 CT (Rate) dated 28.06.2017. They fulfill all the four conditions stipulated in the notification and are therefore eligible to avail benefit of the same. • They referred to the decision of the Advance Ruling Authority in the case of Yamuna Expressway Industrial Development Authority, wherein it was held that the plot of land allotted by Yamuna Expressway Authority for hospital, nursing home, diagnostic centre purposes etc would be eligible for the aforesaid exemption under the exemption notification. The said advance ruling squarely applies to the facts of their present case and therefore the upfront premium payable on the allotment of commercial plots which would be used for development of infrastructure for financial business including Commercial Complex for commercial activities such as shopping malls, showrooms, retail outlets, hotels, restaurants, offices and such other commercial uses duly qu....
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....decision provided by the Authority or the Appellate Authority to an applicant on matters or on questions specified in sub-section (2) of section 97 or sub-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; (b) "Appellate Authority" means the Appellate Authority for Advance Ruling referred to in section 99; (c) "applicant" means any person registered or desirous of obtaining registration under this Act; The above clause (a) of section 95 clearly provides that the applicant of Advance Ruling should be related to a taxpayer who supplies the goods or services or both or who proposes to make supplies in future. As the wording says the "supply of goods or series or both" and not the "receipt of goods or services, or both", it is implied that the applicants seeking Advance Rulings should be the suppliers and not the recipients. The meaning of the applicant defined at Point No. (c) should be derived only in consonance with Point No. (a) of Section 95 of the CGST Act 2017. 12. Further, we find that the scope of supply as provided in section 7 of the CGST Act, the expres....