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Ancillary services (transfer fee, extension fee, conversion fee) provided in respect of business of developing and providing Industrial Plots on long term lease to the industrialists are not covered under the exemption.

Shanti Prime Publication Pvt. Ltd.

Levy of GST—In the instant case, Applicant wants the advance ruling on the issue that a company duly registered under the Companies Act, 2013 which is owned by State Government of Punjab and is mainly engaged in the business of developing and providing Industrial Plots on long term lease to the industrialists by virtue of Point No. 41 of the Notification No. 12/2017 - Central Tax (Rate), dated 28.06.2017 is exempt from GST. Whether the ancillary services like Transfer fee, Extension fee, Conversion fee, processing fee etc. provided by it are also exempt.

As per applicant these ancillary services are inter-linked with the service of providing lease of Industrial Plots, Therefore these ancillary services should also be exempt from GST.

Held that—The services provided by the applicant, as enumerated at serial No. 14 of their application, though are in respect of the same plots but the entry No. 41 ibid, does not provide exemption to all services related to the plots covered there as is evident from the description of service which grants exemption only to the Upfront amount (called as premium, salami, cost, price, development charges or by any other name) payable in respect of service by way of granting of long term lease of thirty years, or more. Therefore, the other subsequent services rendered by the applicant as enumerated by them in their application (Sr. No. 14) are not mentioned therein and thus, appear to be not covered under the said exemption entry or any additional other entry in Notification No. 12/2017-CT(R) for that matter and thus appear to be liable for payment of CGST and UTGST.

These services are, therefore, covered under "Other Miscellaneous services"-Group 99979 [scheme of classification of services in the Annexure to Notification No.11/2017- Tax (Rate) dated 28.06.2017] with CGST rate of 9% as provided at Sr. No. 35 of Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 (as amended) with equal rate (9%) of UTGST as per entry No. 35 in' Notification No. 11/2017-Union Territory Tax (Rate) dated 28.06.2017 (as amended).

Ruling—The said services are taxable services in terms of sub-section (21) of section 2 read with section 9 of the CGST Act, 2017. The services are not specifically exempted in terms of Notifications issued under section 11 of the GGST Act, 2017.

For the purpose of charging the tax, the services are covered under "Other Miscellaneous services"-Group 99979, Service Code 999799-'Other" services nowhere else classified' as per the scheme of classification of services and taxable at 18%. [AUTHORITY FOR ADVANCE RULING, CHANDIGARH] [2018] 6 TAXLOK.COM 23 (AAR-CHANDIGARH)