Heading 9972
Services – Exemption from GST
GST
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) of industrial plots or plots for development of infrastructure for financial business, provided by the State Government Industrial Development Corporations or Undertakings or by any other entity having 68[20] per cent. or more ownership of Central Government, State Government, Union territory to the industrial units or the developers in any industrial or financial business area.
43[Explanation.- For the purpose of this exemption, the Central Government, State Government or Union territory shall have 68[20] per cent. or more ownership in the entity directly or through an entity which is wholly owned by the Central Government, State Government or Union territory.]
Condition
9[Provided that the leased plots shall be used f
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or buyers or owners shall incorporate in the terms and conditions, the fact that the integrated tax was exempted on the long term lease of the plots by the original lessor to the original lessee subject to above condition and that the parties to the said agreements undertake to comply with the same.]
Clarification
* Clarification regarding applicability of GST on Preferential Location Charges (PLC) collected along with consideration for sale/ transfer of residential / commercial properties. [ See para 8 of Circular No. 234/28/2024-GST dated 11.10.2024 ]
* Clarification whether location charges or preferential location charges (PLC) collected in addition to the lease premium for long term lease of land constitute part of the lease premium or upfront amount charged for long term lease of land and are eligible for the same tax treatment. [ See para 10 of Circular No. 177/09/2022-TRU dated 03.08.2022 ]
* Clarification regarding admissibility of GST exemption o
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nation.- For the purpose of this exemption, the Central Government, State Government or Union territory shall have 50 per cent. or more ownership in the entity directly or through an entity which is wholly owned by the Central Government, State Government or Union territory.]
Clarification
* Clarification regarding admissibility of GST exemption on the upfront amount which is determined upfront but is paid or payable in installments for long term (thirty years, or more) lease of industrial plots or plots for development of financial infrastructure. [ See Circular No. 101/20/2019-GST dated 30.04.2019 ]
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Notes:
As Amended vide Notification No. 24/2018-Integrated Tax (Rate) dated 20-09-2018, before it was read as,
12[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) of industrial plots or plots for develop
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