Page 144 - GSTL_13th August 2020_Vol 39_Part 2

230 GST LAW TIMES [ Vol. 39
We observe that, RLDA being the statutory authority of Govern-
ment of India is providing services by way of renting of immovable
property to a registered person (i.e. the applicant), and renting of
immovable property includes leasing also, therefore the said ser-
vices are falling under the purview of Reverse Charge Mechanism.
The applicant being the recipient of service of leasing or renting of
immovable property is liable to pay GST under RCM.
(12) Whereas, to determine the rate of GST on supply made by RLDA to
the applicant, we have to go through the above discussed Para 10
and 11 together i.e. Chapter Heading 9972 of Notification 11/2017-
Central Tax (Rate), dated 28-6-2017 (as amended) with the Notifica-
tion No. 13/2017-Central Tax (Rate), dated 28-6-2017 (as amended).
Thus, we find that, the leasing services supplied by the RLDA to the
applicant falls under HSN 9972 12 attracting GST @ 18% (SGST 9%
+ CGST 9%).
(13) The applicant has further made a contention that leasing services
provides by RLDA to them is exempt from GST as provided under
Serial No. 41B of Notification 12/2017-Central Tax (Rate), dated
28-6-2017 as amended vide Notification 4/2019-Central Tax (Rate),
dated 29-3-2019.
The relevant portion of the Notification 4/2019-Central Tax (Rate),
dated 29-3-2019 is as below :

Sl. Chapter, Description of Rate Condition
No. Section, Services (per
Heading, cent.)
Group or
Service
(Tariff)
Code
41B Heading Upfront amount Nil Provided that the pro-
9972 (called as premi- moter shall be liable to
um, salami, cost, pay tax at the applicable
price, develop- rate, on reverse charge
ment charges or by basis, on such proportion
any other name) of upfront amount (called
payable in respect as premium, salami, cost,
of service by way price, development
of granting of long charges or by any other
term lease of thirty name) paid for long term
years, or more, on lease of land, as is at-
or after 1-4-2019, tributable to the residen-
for construction of tial apartments, which
residential apart- remain un-booked on the
ments by a pro- date of issuance of com-
moter in a project, pletion certificate, or first
intended for sale occupation of the project,
to a buyer, wholly as the case may be, in the
or partly, except following manner -
where the entire [GST payable on upfront
consideration has amount (called as premi-
GST LAW TIMES  13th August 2020  144