Classification of service— In the instant case, the  appellant vide its Application filed before the Rajasthan Authority for Advance Ruling, had requested for Advance Ruling as to:

i. Whether the Lease Agreement between the Appellant Company i.e. the Lessee and RLDA for a period of 99 years is exempt from levy of GST in view of the Notification No. 04/2019-Central Tax (rate) dated 29.03.2019 or Notification No. 12/2017-Central Tax (rate) dated 28.06.2017?

ii. Whether the amount of Rs. 158657105.00 which is transferred by the Appellant Company as Security Deposit in pursuance to the tender and lease agreement dated 08.11.2019 is exempt under GST in view of the Notification No. 04/2019-Central Tax (rate) dated 29.03.2019 or Notification No. 12/2017-Central Tax (rate) dated 28.06.2017?

iii. Whether the amount of Rs.158657105.00 deposited during February, 2019 is exempt under Notification No. 04/2019-Central Tax (rate) dated 29.03.2019 or Notification No. 12/2017-Central Tax (rate) dated 28.06.2017?

The AAR, Rajasthan, passed the following order:

i. The Lease Agreement between the Applicant Company i.e. the Lessee and RLDA for a period of 99 years is not exempted from levy of GST in view of the Notification No. 04/2019-Central Tax (rate) dated 29.03.2019 or Notification No. 12/2017-Central Tax (rate) dated 28.06.2017.

ii. The amount of Rs. 158657105/- which is transferred by the Applicant/SPV in pursuance to the tender and lease agreement dated 08.11.2019 is not exempted under GST in view of the Notification No. 04/2019-Central Tax (rate) dated 29.03.2019 or Notification No. 12/2017-Central Tax (rate) dated 28.06.2017.

iii. The amount of Rs.158657105/- deposited during February, 2019 is not exempted from GST vide Notification No. 04/2019-Central Tax (rate) dated 29.03.2019 or Notification No. 12/2017-Central Tax (rate) dated 28.06.2017.

The Appellant being not satisfied with the above Ruling has therefore, filed the present appeal before this forum.

Time of supply of service is 25.11.2018 which is after 60 days post to LOA and before the date of payment of premium. Even, the date of payment of lease premium is prior to 01.04.2019. Hence. We are of the considered view that the exemption under Entry No. 41B of the Notification No. 12/2017 dated 28.06.2017 inserted vide Notification No. 04/2019 dated 29.03.2019 is not available to the appellant.

Held that— The Lease Agreement between the Appellant and RLDA and the amount of Rs. 158657105/-deposited during February, 2019 is not exempted from levy of GST under Notification No. 04/2019-Central Tax (rate) dated 29.03.2019 or Notification No. 12/2017-Central Tax (rate) dated 28.06.2017.