GST is leviable on residential land provided on the lease basis. GST is leviable on maintenance charges and lease rent received by the applicant on such residential land.
Levy of GST— In the instant case, applicant is the company that provides residential land on lease is located at Ravinagar in the Gwalior district of the state of Madhya Pradesh.
QUESTION RAISED BEFORE THE AUTHORITY IS AS FOLLOWS -
1. We are providing residential land on lease basis for which we are charging or receiving lease premium whether GST is leviable or not?
2. Please also clarify whether GST is leviable on the maintenance charges and lease rent received on such residential land.
upfront concession fee received against the lease made for more than 30 years is exempted from the payment of GST under the provisions of entry No. 41 of Notification No. 12/2017-Central Tax (Rate), date 28-6-2017 as amended by Notification No. 32/2017-Central Tax (Rate), dated 13-10-2017, only when all the conditions of the Notification are met. It is therefore clear that the legislature in its infinite wisdom has treated the Lease of land to be taxable.
Held that— In respect to Question 1, the GST is leviable on residential land provided on the lease basis.
In respect to Question 2, the GST is leviable on maintenance charges and lease rent received by the applicant on such residential land.
GST is leviable on residential land provided on the lease basis. GST is leviable on maintenance charges and lease rent received by the applicant on such residential land.
Levy of GST— In the instant case, applicant is the company that provides residential land on lease is located at Ravinagar in the Gwalior district of the state of Madhya Pradesh.
QUESTION RAISED BEFORE THE AUTHORITY IS AS FOLLOWS -
1. We are providing residential land on lease basis for which we are charging or receiving lease premium whether GST is leviable or not?
2. Please also clarify whether GST is leviable on the maintenance charges and lease rent received on such residential land.
upfront concession fee received against the lease made for more than 30 years is exempted from the payment of GST under the provisions of entry No. 41 of Notification No. 12/2017-Central Tax (Rate), date 28-6-2017 as amended by Notification No. 32/2017-Central Tax (Rate), dated 13-10-2017, only when all the conditions of the Notification are met. It is therefore clear that the legislature in its infinite wisdom has treated the Lease of land to be taxable.
Held that— In respect to Question 1, the GST is leviable on residential land provided on the lease basis.
In respect to Question 2, the GST is leviable on maintenance charges and lease rent received by the applicant on such residential land.