Page 142 - GSTL_13th August 2020_Vol 39_Part 2

228 GST LAW TIMES [ Vol. 39
(9) Whereas, the applicant is contesting that as per clause 26.3 of the
tender bid and lease agreement page Number 400, the entire
amount except security bid amount will get forfeited in case of any
default on part of the applicant is also not valid on the ground that
every agreement is de novo in itself and conditions may vary from
each other except the conceptual facts and principles. The amount
of Rs. 15,86,57,105/- as lease premium was deposited after issuance
of LoA and deposit of bid security amount i.e. the stage when it is
confirmed that the applicant will avail leasing services of the plots
from the RLDA.
Further, the ‘Time of Supply of Services’ for cases of Reverse Charge
Mechanism, as defined in Section 13(3) of CGST Act, 2017 is as
under -
(3) In case of supplies in respect of which tax is paid or liable to be
paid on reverse charge basis, the time of supply shall be the earlier
of the following dates, namely :-
(a) the date of payment as entered in the books of account of the recipient
or the date on which the payment is debited in his bank ac-
count, whichever is earlier; or
(b) the date immediately following sixty days from the date of issue of
invoice or any other document, by whatever name called, in
lieu thereof by the supplier :
Provided that where it is not possible to determine the time of
supply under clause (a) or clause (b), the time of supply shall
be the date of entry in the books of account of the recipient of
supply :
Provided further that in case of supply by associated enter-
prises, where the supplier of service is located outside India,
the time of supply shall be the date of entry in the books of ac-
count of the recipient of supply or the date of payment,
whichever is earlier.
We observe that the LoA has clearly stipulated that the GST on lease
premium will be deposited by the recipient of Services directly in
Government account and in case, recipient of services is not regis-
tered in GST then the GST amount needs to be transferred to the
RLDA. In the instant case, the applicant is a registered entity and
therefore it is liable to pay the GST directly in government account
under RCM. Further, as defined in above Section, the payment of
Rs. 15,86,57,105/- is due when the said amount is either shown in
books of account of recipient or 60 days post-invoicing of the said
amount made by the supplier, whichever is earlier. The applicant in
pursuance to this has deposited first installment of lease premium
of Rs. 15,86,57,105/- by various RTGS on different dates from 16-2-
2019 to 22-2-2019.
In view of the facts of law as discussed above, we find that lease
premium deposited by the applicant is a consideration towards
leasing services supplied by RLDA to the applicant and thus liable
to GST.
(10) Whereas, while examining on functions of RLDA, we find that it is a
statutory authority constituted under the Railways Act, 2005 with
obligation, inter alia of development on Railway land for commer-
GST LAW TIMES  13th August 2020  142