Notification No 23/2018 Central Tax (Rate) : Exemption to One time upfront amount

By | September 20, 2018
(Last Updated On: September 21, 2018)

Notification No 23/2018 Central Tax (Rate)

Seeks to insert explanation in an entry in notification No. 12/2017 – Central Tax (Rate) by exercising powers conferred under section 11(3) of CGST Act, 2017.

Exemption to One time upfront amount by State Government Industrial Development Corporations or Undertakings to industrial units-Explanation

The CBIC vide Notification No. 12/2017- Central Tax (Rate) dated 28/06/2017 had exempted the intra-State supply of services of “One time upfront amount (called as premium, salami, cost, price, development charges or by any other name) leviable in respect of the service, by way of granting long term (thirty years, or more) lease of industrial plots, provided by the State Government Industrial Development Corporations or Undertakings to industrial units”

Now, the CBIC has issued another Notification No. 23/2018- Central Tax (Rate) dated 20th September, 2018 modified the said notification by inserting an Explanation which provides that as a condition of this exemption, the Central Government, State Government or Union territory must have 50 per cent. or more ownership in the entity directly or through an entity which is wholly owned by the Central Government, State Government or Union territory.

Read Notification No 23/2018 Central Tax (Rate)

[TO BE PUBLISHED IN THE GAZZETE OF INDIA, EXTRAORDINARY, PART II,
SECTION 3, SUB-SECTION (i)]
Government of India
Ministry of Finance
(Department of Revenue)

Notification No. 23/2018- Central Tax (Rate)

New Delhi, the 20th September, 2018

G.S.R……(E).- In exercise of the powers conferred by sub-section (3) of section 11 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, and on being satisfied that it is necessary so to do for the purpose of clarifying the scope and applicability of the notification of the Government of India, in the Ministry of Finance (Department of Revenue) No.12/2017- Central Tax (Rate), dated the 28th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, SubSection (i), vide number G.S.R. 691(E), dated the 28th June, 2017, hereby inserts the following Explanation in the said notification, in the Table, against serial number 41, in column (3), namely

“Explanation.- For the purpose of this exemption, the Central Government, State
Government or Union territory shall have 50 per cent. or more ownership in the
entity directly or through an entity which is wholly owned by the Central
Government, State Government or Union territory.”.

[F. No.354/300/2018-TRU]
(Mohit Tewari)
Under Secretary to the Government of India

Note: – The principal notification No. 12/2017 – Central Tax(Rate), dated the 28th June, 2017 was published in the Gazette of India, Extraordinary, vide number G.S.R. 691 (E), dated the 28th June, 2017 and was last amended by notification No. 14/2018- Central Tax (Rate), dated the 26th July, 2018 vide number G.S.R. 678(E), dated the 26 th July, 2018.

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