- (1.) The GST has been made applicable on premium paid on lease of property by virtue of Section 7 read with Schedule II of the Good and Service Tax Act, 2017 (in short of the Act). The two notifications no. 12 of 2017 and 32 of 2017 issued in exercise of powers under Section 11 (1) of the Act exempt service tax on one time upfront amount leviable in respect of service by way of granting long term (30 years or more) lease of industrial and other kind of plots.
(2.) In view of the above notifications, respondent no. 3 Yamuna Express Way Industrial Authority applied for Advance Ruling to the authority for Advancing Ruling U.P., as to whether the GST is applicable on upfront amount in respect of the service by way of granting of long term lease of 30 years or more for plots catering to public health care such as hospital, nursing home, diagnostic centeres etc.
(3.) The Authority for Advance Ruling, U.P. vide order dated 6.6.2018 ruled that GST is not applicable and the upfront amount on the lease as mentioned at serial no.41 of the notification no. 12 of 2017 as amended by notification no. 32 of 2017 is exempt.;