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GST RCM Lease Premium Payment

Pankaj Arora (Learner) (3134 Points)

07 May 2019

Hi..

We have to pay lease premium Payment to Noida Authority, please let me know whether we would have to pay GST on lease premium payment?

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6 Replies

Pankaj Rawat (GST Practitioner) (55030 Points)
Replied 10 May 2019

Its exempted under Notification 12/2017 CT (R) , & kindly refer latest circular No. 101/20/2019, Dt 30/4/2019 issued in tbis regard

Swami Ayyappa Nuli (TAX ADVISOR & CONSULTANT AT G.S.T SUVIDHA CENTER) (1372 Points)
Replied 10 May 2019

Yes, such service is exempt provided it must be Long term lease (Lease period > 30 Years). Otherwise, it is taxable service.

Swami Ayyappa Nuli (TAX ADVISOR & CONSULTANT AT G.S.T SUVIDHA CENTER) (1372 Points)
Replied 10 May 2019

Equal to more than 30 years

Pankaj Arora (Learner) (3134 Points)
Replied 11 May 2019

Answer

Swami Ayyappa Nuli (TAX ADVISOR & CONSULTANT AT G.S.T SUVIDHA CENTER) (1372 Points)
Replied 11 May 2019

Heading 9972: One time upfront amount (called as premium, salami, cost, price, development charges or by any other name) leviable in respect of the service, by way of granting long term (thirty years, or more) lease of industrial plots, provided by the State Government Industrial Development Corporations or Undertakings to industrial units exempted vide Notification No.12/2017-CT(RATE)

If all the above conditions are satisfied then such payment does not attract G.S.T