Advance Ruling No. UP/ADRG/41/2023

In re: REMARKABLE INDUSTRIES PVT. LTD.

Date Issued: 7 December 2023
Source: 2024 (84) G.S.T.L. 389 (A.A.R. - GST - U.P.)
Views: 12

Summary

Transfer of allotted land - Other miscellaneous service - Heading 9997 - Classification - Industrial plot was allotted to applicant by area industrial development authority under 99 lease deeds on payment of lump sum upfront premium and annual lease charges - Applicant wished to sell said land for certain consideration - Buyer has to pay transfer charges to area industrial development authority for permission for such sale - HELD : As per Section 7(1) of CGST Act, 2017 read with Schedule II benefits arising out land i.e. any lease, tenancy, easement, license to occupy land, letting out of a building including a commercial, industrial or residential complex of business or commerce are not be treated as transaction in immovable property but as supply of services for purpose of GST Act - Activity of assessee in nature of transfer one’s leasehold rights, it does not amount to further sub-leasing as assessee right as per deed of sub-lease stands extinguished after assignment and neither it create fresh benefit from land - It is in nature of compensation for agreeing to do transfer of assessee’s rights in favour of assignee - Thus, said service is classifiable under other miscellaneous…