GST Expertise Indirect Tax Update 06 May-2019
CBIC via circular has clarified
that upfront premium payable on long term lease whether paid in one or more
Installment to state Government shall be eligible for exemption from GST. In
this regard, our team has represented in one advance ruling in the state of
Jharkhand wherein the authority had pronounced negative ruling on the ground
that premium amount charged by state authority being payable in installments,
however the benefit of exemption shall be allowed provided the same shall be
payable in one time. The said ruling is being overruled with the coming
of the clarification by CBIC with the efforts of representation made,
which have confirmed the view taken by our team
