Just a moment...

Report
FeedbackReport
Bars
Logo TaxTMI
>
×

By creating an account you can:

Feedback/Report an Error
Email :
Please provide your email address so we can follow up on your feedback.
Category :
Description :
Min 15 characters0/2000
TMI Blog
Home / RSS

Port Authority's Land Lease for Commercial Complex Not Exempt Under Entry 41, Must Pay GST on Services

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....AAAR ruled that long-term land lease services by Port Authority to Company A for establishing a commercial office complex does not qualify for GST exemption under Entry 41 of Notification 12/2017-CT(Rate). The authority determined that constructing an office complex for corporate use and rental purposes constitutes neither industrial nor financial activity. The definition specifically excludes industrial buildings, and mere maintenance of accounts cannot be equated with financial activity. Additionally, the Port Authority failed to meet the ownership threshold requirement of 20% government stake. Consequently, the lease services for commercial office complex development remain taxable under GST, as they do not satisfy the essential conditions for exemption under the notification.....