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The Lease Agreement between the Applicant i.e. the lessor and the Lessee for a period of 99 years is a Lease Agreement of immovable property classifiable under HSN 9972 and attracts GST @18%

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Levy of GST — The Applicant Company is a special purpose vehicle set up for establishing a ‘Mega Food Park’ pursuant to guidelines framed under the ‘Mega Food Park Scheme’, 2012. MoFPI has granted approval to the Applicant Company to set up a Mega Food Park at Village Roopangarh, Ajmer, Rajasthan.  The applicant Company wishes to enter into lease agreements with several lessees for a total period of 99 years for separate industrial units situated in Ajmer (Rajasthan) for a consideration towards booking and allotment of developed plot. Thus, the applicant sought advance ruling as; (a). Whether the Lease Agreement between the Applicant Company i.e. the lessor and the Lessee for a period of 99 years is a Sale of immovable property and outside GST and is exempt from levy of GST?; (b) If the present transaction of giving land on lease of 99 years is taxable under GST, then at what rate and what HSN Code is applicable? Ruled as ”The Lease Agreement between the Applicant i.e. the lessor and the Lessee for a period of 99 years is a Lease Agreement of immovable property classifiable under HSN 9972 and attracts GST @18% (SGST 9% + CGST 9%)“. — Greentech Mega Food Park Pvt. Ltd., In Re… [2019] 12 TAXLOK.COM 084 (AAR-Rajasthan)

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