Breif Issue :

FACTS AND ISSUE OF THE CASE:

In this case applicant got approval from  the Ministry of Foods Processing Industries, Government of India (“MoFPI”) to set up a Mega Food Park at Village Roopangarh, Ajmer, Rajasthan.Memorandum of Agreement has been entered into between the President of India acting through the Director, MoFPI and the Applicant Company.

In terms of the said MOA, the applicant responsible for establishing the Food Park, including design, engineering procurement, financing, construction and operation of the Food Park in accordance with the provisions of MOA read with the scheme guidelines.

That as part of the development or setting up of the Foods Park, the Applicant company has identified / developed certain individual plots on the project site for the purpose of transferring the plots for a lease of 99 years and setting up of industrial units inter alia manufacturing of food and related products as well as food processing activities in accordance with the Scheme Guidelines.

That the applicant Company wishes to enter into lease agreements with several lessees for a total period of 99 years for separate industrial units situated at Greentech Mega Food Park, Village Roopangarh in Ajmer (Rajasthan) for a consideration towards booking and allotment of developed plot. The entrepreneurs can pay either immediately or within a mutually agreed upon period along with interest.

ISSUE OF THE CASE:

Whether the Lease Agreement between the Applicant Company i.e. the lessor and the Lessee for a period of 99 years is a Sale of immovable property and outside GST and is exempt from levy of GST?

If the present transaction of giving land on lease of 99 years is taxable under GST, then at what rate and what HSN Code is applicable?