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GST is applicable on One Time Concession Fees charged by the applicant in respect of their property which is given to M/s Myrayash Hotels pvt. Ltd for a long term lease of 60 years, it does not fall under criteria of sr.no. 41 of notification no.12/2017.

Levy of GST— The present appeal has been filed against the Advance Ruling.

The Appellant sought an Advance Ruling in respect of the question whether GST is applicable on one time concession fees charged by the appellant in respect of their property at Anjuna, Goa, which is given to M/s Myrayash Hotels Pvt. Ltd for a long term lease of 60 years for development of infrastructure for financial business or private investment made on DBFOT (Design, Build, Finance, operate and Transfer) providing; exclusive right, license and authority to construct, operate and maintain the project.

The Appellant claimed exemption as per Sr. No.41 of the Notification No 12/2017 -Central Tax (Rate), dated 28/06/2017 as amended by Notification No. 32/2017 – Central Tax (Rate), dated 13/10/2017.

The Authority for Advance Ruling held that the service provided by the Appellant, does not satisfy the criteria mentioned at Sr. No.41 of the Notification No. 12/2017 -Central Tax (Rate), dated 28/06/2017) as amended by Notification No. 32/2017 – Central Tax (Rate), dated 13/10/2017. Therefore, they are not entitled for the benefits of the said Notification (as amended) and the activity of long term lease is liable for levy of GST.

To consider the Appellant’s entitlement to exemption, the Lessee should be the entity involved in the activity of developing a land / particular mass of area into multiple industrial plots which in turn would be allotted to different potential industrialists. However, in the instant case, the Lessor is not the entity involved for development of any Industrial or Financial Business area but for promotion of tourism and allied activities simply. Lessor being not involved in the activity of allotting industrial space and Lessee being the entity not involved into developing multiple industrial plots, the benefit of the said Notification is not applicable to the Appellant.

Held that— The decision of the AAR Goa in the present case is consistent with the extant statute and hence requires to be maintained as legal and proper.

GST is applicable on One Time Concession Fees charged by the applicant in respect of their property which is given to M/s Myrayash Hotels pvt. Ltd for a long term lease of 60 years, it does not fall under criteria of sr.no. 41 of notification no.12/2017.

Levy of GST— The present appeal has been filed against the Advance Ruling.

The Appellant claimed exemption as per Sr. No.41 of the Notification No 12/2017 -Central Tax (Rate), dated 28/06/2017 as amended by Notification No. 32/2017 – Central Tax (Rate), dated 13/10/2017.

Held that— The decision of the AAR Goa in the present case is consistent with the extant statute and hence requires to be maintained as legal and proper.