Authority for Advance Ruling (AAR)

The Applicant is a manufacturing company, producing packaging paper Due to expansion/modernization, civil structures were done. Whether input credit on materials used for such civil structures meant for machineries can be availed? If so, what is the procedure under which ITC can be claimed?

1.Whether the amount deposited by the applicant (75%) in escrow account against bank guarantee pending outcome of the further challenge against Arbitral Award or dissatisfaction against DAB decision, is liable to GST under the provisions of CGST Act, 2017?
2.If the answer to first question is in affirmative, then, what shall be the ‘time of supply’ when tax on such DAB/arbitral award is payable to Government exchequer, i.e., whether tax is payable (a) when part amount (75%) is deposited into escrow account pending litigiation, or (b) when complete award amount (100%) is paid to the contractor pursuant to finality of the decision
3.If answer to Question No. 1 is affirmative, whether the applicant is eligible to claim Input Tax Credit (ITC) thereupon?

1. Whether the service in question falls within the entry Sr. No. 26 of notification No. 11/2017-CE (Rate) dated 28.6.2017, as amended vide notification No. 20/2017-CT (Rate)  dated 30.9.2019 & SAC 9988 (id) & attract GST @ 12% [CGST 6% + SGST 6%]  or otherwise.

1. When sub-lessor charges electricity in additional to rent as per sub-lease agreement for immovable property rented to the tenant based on reading sub-meter is sub-lessor liable to charge and pay GST on electricity charged by it?

2. Can electricity charges paid by sub lessor to the supplier of electricity for electricity connection in the name of the landlord and recovered based on sub meters from different tenant be considered as amount recovered based on sub meters from different tenant be considered as amount recovered as pure agent of the tenant when the legal liability to pay electricity bill to supplier of electricity is that of landlord?

3. Can the advance ruling be effective from beginning of the rent agreement date?

(i) Do we have to pay tax under Reverse Charge Mechanism u/s 9(3) or 9(4) for lease renewal amount payable to SMC ?

(ii)  Do we have to pay tax under Reverse Charge Mechanism u/s 9(3) or 9(4) for premium on lease renewal amount payable to SMC ?

(iii) Will collection made from shareholders/shop owners for making payment of lease and lease premium amounts be considered as supply and GST under forward charge is applicable on the same?

(iv) What will be the effect of circular no. 101/20/2019-GST dated 30.4.2019 on the transaction? Will it exempt the applicant from payment of tax under Reverse Charge Mechanism?

(v) If answer to question no. (iii) is in affirmative, then will applicant’s shareholder/shop owners who are reimbursing the lease and lease premium amount get ITC of the GST charged by the applicant?

Application has been withdrawan

1. Whether the upfront amount charged by the Applicant (as lease Premium) for granting long-term lease of ninety years, in respect of allotment of plots to the industrial units or the developers, for the development of industrial infrastructure in the notified industrial town of NOIDA, such as for residential, commercial, retail, hospital, logistics etc. is exempt from payment of GST in terms on Entry No 41 of Notification No 12/2017-CT (Rate) dated 28-06-2017 (as amended by Notification No 32/2017-CT (Rate) dated 13-10-2017 and Entry No 41 of Notification No KANI-2-843/XI-9(47)/17 (UPGST-Rate) dated   30-06-2017 ?

2. Whether the upfront amount charged by the Applicant (as lease premium) for granting long-term lease for ninety years is in the nature of transaction for sale of land and therefore outside the scope of levy of GST?

For non-consideration of favourable ruling with similar facts by the same Authority in the order.

1. Whether the applicant's obligation to issue gold coins and white goods to the dealers / customers upon they achieving the stipulated lifting of the material / purchase target during the scheme period would be regarded as "goods disposed of by way of gift" and Input Tax Credit ("ITC") on the same would be restricted as provided under the Section 17(5)(h) of the CGST Act, 2017?

2. Whether the applicant's obligation to issue gold coins and white goods to the dealers/ customers upon they achieving the stipulated lifting of the material / purchase target during the scheme period would be regarded as a "permanent transfer or disposal of business assets where ITC has been availed on such assets" and would be treated as a supply even if made without consideration and be subjected to GST under Sl. No. 1 of the Schedule-I to the CGST Act, 2017?

3. Whether the applicant's obligation to issue gold coins and white goods to the dealers/ customers upon they achieving the stipulated lifting of the material / purchase target during the scheme period would be regarded as a supply under Section 7 of the CGST Act, 2017?

i. Whether sale of developed plots by applicant to various customers after development is taxable under the GST Acts or not.

ii. Whether development of plots’ service provided to the land owners is taxable under GST and if so under which Notification and under which entry?

iii. Whether transfer of development rights by the land owner in consideration of land development services received is taxable or not under the provisions of the GST Acts? If taxable, whether the applicant is liable to pay GST under RCM basis on the development rights received from the land owners or whether the land owner is only liable to pay GST on such transfer of development rights. What is the applicable. Notification ?

iv. If transfer of development rights and development of plot service are liable for GST, how to arrive at the value of supply of such services for payment of GST. How much value of land has to be deducted for levying tax?

v. If Transfer of development rights are liable for GST, can developer claim ITC of the same while discharging the liability to pay tax on development services provided, if such rights are received from the registered land owners?

vi. If tax is payable on TDRs on RCM basis and on development service, what is the time of payment and what is the applicable Notification?