Page 138 - GSTL_13th August 2020_Vol 39_Part 2

224 GST LAW TIMES [ Vol. 39
able extra in addition to the above quoted/offered rates (lease pre-
mium and annual lease rent.)
As per Notification No. 12/2017-Central Tax (Rate), dated 28-6-
2017, at Serial Number-41 (Heading No. 9972) it was mentioned as
under “One-time upfront amount (called as premium, salami, cost,
price, development charges or by any other name) leviable in re-
spect of the service, by way of granting long term (30 years or more)
lease of industrial plots, provided by the State Government Indus-
trial Development Corporation or Undertakings to Industrial
Units”.
Ongoing through the above condition of aforesaid notification, it is
viewed that payment of GST has not been exempted for the said
premium payment as this payment was made as a part of lease
agreement as per mutual understanding, further condition was also
mentioned that “Lease of industrial plots, provided by the State
Government Industrial Development Corporation or Undertakings
to Industrial Units”.
In this context, it is mentioned that RLDA has leased 7.337-hectare
land to the applicant company i.e. M/s. Hazari Bagh Builders Pvt.
Ltd., Ajmer, which do not fulfill the condition/definition of the said
notification. Therefore, in view of this office reply for question No. 1
is not affirmative.
(2) Whether the amount of Rs. 15,86,57,105/- which is transferred by
the applicant company as security deposit in pursuance to the ten-
der and lease agreement dated 8-11-2019 is exempt under GST in
view of Notification No. 4/2019-Central Tax (Rate), dated 29-3-2019
or Notification No. 12/2017-Central Tax (Rate), dated 28-6-2017?
Comments : It is not correct contention that applicant company has
transferred Rs. 15,86,57,105/- as security deposit in pursuance to the
tender and lease agreement dated 8-11-2019. Whereas, as per
agreement dated 8-11-2019 made between RLDA and Applicant
Company at page No. 3 (as per copy forwarded with the application
of the applicant), it was clearly mentioned that (F) “The les-
see/selected bidder in compliance of the term and condition of the
LOA has (a) paid to RLDA following amount towards the first in-
stallment of the lease premium as specified in the LOA/schedule of
payment in the following manner - dated 16-2-2019 to 22-2-2019 to-
tal Rs. 15,86,57,105/-”.
Thus, the contention of the applicant company appears not correct,
as it is not security deposit, but it is a part of lease premium, which
is not exempted from levy of GST as per view of this office.
(3) Whether the amount of Rs. 15,86,57,105/- deposited during Febru-
ary, 2019 is exempt under Notification No. 4/2019-Central Tax
(Rate), dated 29-3-2019 or Notification No. 12/2017-Central Tax
(Rate), dated 28-6-2017?
Comments : As per Notification No. 4/2019-Central Tax (Rate), dated
29-3-2019, the contents under 41B is reproduced as under :
GST LAW TIMES  13th August 2020  138