In Re: M\/s Punjab Small Industries & Export Corporation Limited
GST
2018 (11) TMI 1076 – AUTHORITY FOR ADVANCE RULING, CHANDIGARH – 2018 (19) G. S. T. L. 697 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING, CHANDIGARH – AAR
Dated:- 8-11-2018
AAR No. CT\/01\/A. R. \/CHD\/2018\/8042
GST
KUMAR GAURAV DHAWAN AND RAKESH KUMAR POPLI, MEMBER
\nPROCEEDINGS
\n(under section 98 of the CGST Act, 2017 & UTGST Act, 2017)
\nPresent application has been filed u\/s 97 of the Central Goods & Services Tax Act, 2017 & similar provisions under Union Territory Goods and Services Tax Act, 2017 (herein after referred to as CGST Act, 2017 & UTGST Act, 2017). The Applicant M\/s Punjab Small Industries & Export Corporation Limited is state Government owned Industrial Development undertaking which is mainly engaged in providing (30 years or more) lease of Industrial Plots against one time upfront amount (Called as premium, salami, cost, price, development charges or by any other name) to the industrial<\/p>\n
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Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n a 17 that the question raised in his application is neither pending in any proceedings nor decided in any proceedings in the Applicant's case under any of the provision of the Act. Also as per para 13 of the applicant, the question on which the Advance Ruling is sought in respect of “determination of the liability to pay tax on any goods or services or both” which is specified under clause (e) of subsection (2) of Section 97 of the Act. So, in view of the above, the Application was admitted. The arguments of the Applicant were heard on dated 17.10.2018 & ruling was reserved which is released today i.e. on dated 08.11.2018. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ng 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 following ancillary services provided by it are also exempt:- = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n 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.” [Entry before replacement] = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ral 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). = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" In Re: M\/s Punjab Small Industries & Export Corporation LimitedGST2018 (11) TMI 1076 – AUTHORITY FOR ADVANCE RULING, CHANDIGARH – 2018 (19) G. S. T. L. 697 (A. A. R. – GST)AUTHORITY FOR ADVANCE RULING, CHANDIGARH – AARDated:- 8-11-2018AAR No. CT\/01\/A. R. \/CHD\/2018\/8042 GSTKUMAR GAURAV DHAWAN AND RAKESH KUMAR POPLI, MEMBER PROCEEDINGS (under section 98 … Continue reading “In Re: M\/s Punjab Small Industries & Export Corporation Limited”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-15098","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/15098","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=15098"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/15098\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=15098"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=15098"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=15098"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\nStatements of Facts
\nThe Applicant is state Government owned Industrial Development undertaking which is mainly engaged in providing (30 years or more) lease of Industrial Plots against one time upfront amount (Called as premium, salami, cost, price, development charges or by any other name) to the industrial units, which by virtue of Point No. 41 of the Notific<\/p>\n
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\n*Transfer Fees – Fees charged for the purpose of transfer of Industrial Plot from one person to another.
\n*Extension Fees – Fees charged for delay in the commencement' of construction and production.
\n*Conversion Fees – Fees charged for the conversion of leasehold plot into freehold.
\n*Processing Fees – Fees charged for the purpose of transfer of Industrial Plots within the family, change in constitution of ownership\/shareholding pattern permission for sale of freehold plot.
\n*Bifurcation Fees – Fees charged for the permission to sub divide the industr<\/p>\n
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\n“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 50 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.” [Entry after replacement]
\nThe additional services provided by the applicant, as enumerated at serial No. 14 of their application, though are in respect of the same plots <\/p>\n
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\nAdvance Ruling u\/s 98 of the Act
\nIn view of the above observations, it is ruled that
\nThe 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 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 Notific<\/p>\n
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