Page 102 - GSTL_16th July 2020_Vol. 38_Part 3

340 GST LAW TIMES [ Vol. 38
land parcels it owns for this Development i.e. Location 1 and Location 2. The
First Location is in the heart of Gandhidham City and shall be developed as
Mixed Use Residential Development spread over 580 Acres of DPT owned Land.
This Integrated Development shall have Residential Development (45.22%), Insti-
tutional Development including Schools, Colleges & Hospitals (7.41%) and
Commercial & Retail Development (14.17%). 11.33% of the total land is to be de-
veloped for recreational activities like Sports and Green Parks/Open Spaces. The
Second Location is in close proximity of Kandla Port and is planned to be devel-
oped into Industrial Park with Logistic Facilities. The Envisaged Development is
spread over 845.02 Acres of Land and shall house various Industries, Residential
& Commercial Facilities and Recreational Areas along with Amenities. Consider-
ing the Present Needs of the Industry and anticipated Growth, Industries like
Furniture, Edible Oil and Engineering & Fabrication have been proposed. There
is also a provision for Future Railway Siding along with Logistic Park in close
proximity to the existing Railway Line running to the south of this Location.
2. The applicant further submitted that at present Deendayal Port Trust
is incurring various project development expenses like :-
(1) Programme management consultancy;
(2) Marketing Consultancy;
(3) Land levelling and other related works;
(4) Roads;
(5) Water, electricity, & Drainage Infrastructure; and
(6) Other related works for developing SIPC.
3. The applicant also submitted that after the development of SIPC,
DPT will auction the land under the SIPC for 60 or more years, for a considera-
tion, in the form of one time upfront premium. In the absence of any special notifi-
cation from government in this regard DPT is liable for GST, on the upfront pre-
mium receivable, under the category of Real Estate Service (HSN 9972). Consid-
ering these facts, DPT is in dilemma,
whether the “Input Tax Credit” for expenses at Sr. No. 1 to 6 above shall be
available to DPT or not?
Discussion & findings
4. We have considered the submissions made by the applicant in their
application for advance ruling as well as at the time of personal hearing. The is-
sue involved in this case pertains to ‘Input Tax Credit’ under the Central Goods
and Services Tax Act, 2017 (herein after referred to as the ‘CGST Act’). The appli-
cant is a port trust running a major port at Kandla. Under the directions of the
ministry of shipping to utilize the land resources with the endeavour for devel-
oping port based smart city, they are developing one of India’s first Smart Industrial
Port City (SIPC) within Gandhidham-Kandla-Adipur Complex as part of the
Sagarmala project. They will auction the land under the SIPC for 60 or more
years, for a consideration, in the form of one time upfront premium, liable for GST,
under the category of Real Estate Service (HSN 9972). The applicant has request-
ed for advance ruling as to whether the “Input Tax Credit” shall be available on
the following project development services like :-
(1) Programme management consultancy;
(2) Marketing Consultancy;
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