The Central Government vide Notification No. 23/2018- Central Tax (Rate) dated September 20, 2018 has inserted the following Explanation under service exemption Notification No.12/2017- Central Tax (Rate), dated June 28, 2017, 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.”
- No. 41 of service exemption notification provides exemption to upfront amount (called as premium, salami, cost, price, development charges or by any other name) payable in respect of service by way of granting of long term lease of thirty years, or more) of industrial plots or plots for development of infrastructure for financial business, provided by the State Government Industrial Development Corporations or Undertakings or by any other entity having 50 per cent. or more ownership of Central Government, State Government, Union territory to the industrial units or the developers in any industrial or financial business area.
Similar notifications are also issued under the IGST Act and UTGST Act vide Notification No. 24/2018-Integrated Tax (Rate) and Notification No. 23/2018-Union Territory Tax (Rate), both dated September 20, 2018.