Page 135 - GSTL_13th August 2020_Vol 39_Part 2

2020 ] IN RE : HAZARI BAGH BUILDERS PVT. LTD. 221

The amount of GST area of the residential
exemption available apartments in the project
for construction of which remain un-booked
residential apart- on the date of issuance of
ments in the project completion certificate or
under this notifica- first occupation ÷ Total
tion shall be calcu- carpet area of the residen-
lated as under : tial apartments in the pro-
ject);
[GST payable on
upfront amount Provided further that the
(called as premium, tax payable in terms of the
salami, cost, price, first proviso shall not ex-
development ceed 0.5 per cent, of the
charges or by any value in case of affordable
other name) paya- residential apartments and
ble for long term 2.5 per cent, of the value in
lease of land for case of residential apart-
construction of the ments other than affordable
project] x (carpet residential apartments re-
area of the residen- maining un-booked on the
tial apartments in date of issuance of comple-
the project ÷ Total tion certificate or first occu-
carpet area of the pation.
residential and The liability to pay central
commercial apart- tax on the said proportion
ments in the pro- of upfront amount (called
ject). as premium, salami, cost,
price, development charges
or by any other name) paid
for long term lease of land,
calculated as above, shall
arise on the date of issue of
completion certificate or
first occupation of the pro-
ject, as the case may be.

(13) that it is submitted here that the lease agreement has been entered
into on 8-11-2019 and the said Notification covers any amount
which becomes payable on or after 1-4-2019. In the present case as
the agreement has been executed on 8-11-2019, the lease premium in
pursuance to such an agreement is squarely covered under the said
Notification and is totally exempt from the levy of GST. It is again
submitted here that neither the agreement was executed nor any
services of lease were extended by RLDA in the form of possession
to the applicant therefore the amount if paid as premium was in
pursuance to an agreement executed after the exemption Notifica-
tion came into effect;

GST LAW TIMES  13th August 2020  135