GST is applicable on One Time Concession Fees charged on leasing property : AAR

GST is applicable on One Time Concession Fees charged on leasing property : AAR | This ruling was made by Authority of Advance Ruling Goa in matter of Goa Tourism Development Corporation Ltd. Below mentioned Questioned were referred byAuthority of Advance Ruling Goa.

GST is applicable on One Time Concession Fees charged on leasing property : AAR

Whether GST is applicable on One Time Concession Fees Charged by us in respect of our property namely Anjuna property given to M/s Myrayash Hotels Pvt. Ltd. On for a long term lease of 60 years for development of infrastructure for financial business on Private Investment mode on DBFOT basis (Design, Build, Finance, Operate and Transfer) providing exclusive right, license and authority to construct, operate and maintain the project The Extract of Order ofAuthority of Advance Ruling Goa is given below :

ADVANCE RULING UNDER SECTION 98 OF THE CGST / GGST ACT, 2017

The service provided by the applicant in the instant matter, is not falling under the criterion mentioned at Sr. No. 41 of the Notification No. 12/2017-Central Tax (Rate), dated 28.06.2017 as amended by the Notification No. 32/2017-Central Tax (Rate), dated 13.10.2017. Therefore, the applicant is not entitled for the benefits of the said notification and the activity of long term lease is liable for levy of GST.