Sale of Lease Hold Land of a Factory
This query is : Resolved
VIPIN GUPTA
(Querist)
23 August 2023
Dear Sir,
We have sold Factory land in the Fy 2018-19 which was acquired by us 40 year back from RIICO on lease for 90 years, now the GST Deptt is telling us to pay GST on it. We are arguing that the document to register this sale is Registred Sale deed not Lease Deed, and as per Schedule III sale of land is not covered under GST and there is no mention of Lease hold land or Freehold land, it only mentions land. I am not able to understand are we on correct line or we have to pay tax . Is there any case law status in your knowledge
We have sold Factory land in the Fy 2018-19 which was acquired by us 40 year back from RIICO on lease for 90 years, now the GST Deptt is telling us to pay GST on it. We are arguing that the document to register this sale is Registred Sale deed not Lease Deed, and as per Schedule III sale of land is not covered under GST and there is no mention of Lease hold land or Freehold land, it only mentions land. I am not able to understand are we on correct line or we have to pay tax . Is there any case law status in your knowledge
CA R SEETHARAMAN
(Expert)
23 August 2023
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%).
In re Greentech Mega Food Park Pvt. Ltd. (GST AAR Rajasthan)
In re Greentech Mega Food Park Pvt. Ltd. (GST AAR Rajasthan)
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