TaxTMI 
TaxTMI 
2026 (2) TMI 577
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.... matter and differ from each other only on a few specific provisions. Therefore, unless a mention is particularly made to such dissimilar provisions, a reference to the CGST Act, 2017 would also mean reference to the corresponding similar provisions in the APGST Act, 2017. 3. It is observed that the queries raised by the applicant fall within the ambit of Section 97 of the GST ACT. The applicant attached copies of challans as proof of payment of Rs.5,000 each for CGST and SGST through Electronic Cash Ledger Reference Nos. DRC3709250014205 dated 10.09.2025, and DRC3709250014205 dated 10.09.2025 respectively, towards the Advance Ruling fee. The Applicant has declared that the questions raised in the application have neither been decided by nor are pending before any authority under any provisions of the GST Act. 4. Brief Facts of the case: 1. The Company has been Incorporated in year 2011 in Sricity, Chennai (India), as India Metal One Steel Plate Processing Private Limited (CIN U28113TN2011PTC080233) is a Private Limited Company (herein after referred as "IМOР"), incorporated under the erstwhile companies Act, 1956 having its Registered Office at Prestige Cosmop....
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....he National Company Law Tribunal, New Delhi (NCLT) sanctioned a Scheme of Amalgamation under Sections 230-232 of the Companies Act, 2013, whereof the Initial Lessee has merged into the Kobelco Construction Equipment India Private Limited (Transferor), by virtue of which all rights, title, interest, duties, obligations, assets, and liabilities of the Initial Lessee, including but not limited to leasehold rights in the Demised Premises and ownership of the Superstructure, have legally vested to the Transferor by operation of law. 5.5 Pursuant to Clause 4(z) of the Lease Deed executed in respect of the Demised Premises, the Transferor has approached the Lessor on 06 June 2025 to exercise its first right of refusal concerning the leasehold rights. The Transferor has further expressed its intent to transfer the leasehold rights in favour of the India Metal One Steel Plate Processing Private Limited (Transferee) in the event the Lessor elects not to reacquire the Demised Premises. Upon discussions between the Lessor and the Transferor, the Lessor by its letter dated 07 June 2025 has consented to the transfer of the leasehold rights in favour of the Transferee, thereby expressly waivin....
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....ditions set forth in the Agreement for the Transfer of Leasehold Rights. 6. Questions raised before the authority: The applicant sought advance ruling on the following: Q1. The applicant has acquired Long-term leasehold rights for the land from Kobelco Construction Equipment India Private Limited who in turn has got the land on lease from Sricity Private Limited, Tirupati. The Question is whether the transaction of acquiring long-term leasehold rights for land for a one-time upfront premium is a "supply of service" taxable under GST or a "sale of land" which is excluded from GST under Schedule III of the CGST Act, 2017 ? Q2. The Applicant had paid Cost of Land Development and related other cost to Kobelco Construction Equipment Indian Private Limited. So, Whether Payment for cost of land development is the supply of Service for levy of Goods and Service tax under definition of Section & of Goods and Service tax Act 2017? Q3. If the transaction mentioned in question A and B is deemed as a 'supply of service" and GST to be paid, whether the applicant is entitled to claim the Input Tax Credit (ITC) paid on the upfront premium and cost of land development 7. Applicant....
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....n 17(5)(d), and is consistently supported by judicial precedents and professional guidance." 7.4 Legal Precedents The Gujarat High Court's decision in Gujarat Chamber of Commerce and Industry & Ors. v. Union of India & Ors., provides clarity on the applicability of GST on the assignment of leasehold rights. The judgment holds that the assignment of leasehold rights in the land allotted by Gujarat Industrial Development Corporation ("GIDC") constitutes a transfer of immovable property, thus falling outside the purview of GST. 8. Personal Hearing: The proceeding of Personal Hearing was conducted on 18.11.2025, for which the authorized representatives, Sri M.V.J.K. Kumar, Advocate and Santosh Kumar, Chartered Accountant have appeared and contended that the applicant paid cost of land development and related other cost to M/s Kobelco Construction Equipment India Pvt Ltd,. and reiterated the facts narrated in their application and submitted copies of- i) Memorandum of Understanding dated 13.6.2025 by and between M/s Kobelco Construction Equipment India Ltd and M/s India Metal One Steel Plate Processing Private Limited. ii) Transfer of lease agreement da....
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....0,000 15,38,000 15,22,62,000 9.5 It could be seen from the above that entire consideration was paid by the applicant to M/s. Kobelco Construction Equipment India Pvt. Ltd., on 25.6.2025 i.e., before filing of present advance ruling application on 4.9.2025. 9.6 It is pertinent to note that all financial transactions connected with the instant issue were concluded on or before 25.06.2025. Consequently, any tax liability or benefit arising from the taxability or otherwise of the said transaction ought to have been discharged or availed at the material time by the applicant. The very expression "Advance Ruling" denotes a determination provided in advance, intended to facilitate trade by clarifying issues of an ambiguous or uncertain nature. This position stands explicitly articulated under Section 95(a) of the CGST Act, 2017, which stipulates: (a) "advance ruling" means a 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 t....