2025-VIL-182-AAR
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SGST Advance Ruling Authority

GST – West Bengal AAR - Leasing or rental services, Mixed supply – Applicant provides fit-outs and related infrastructure support on hire to various tenants of the properties held by its subsidiaries - Applicant has entered into an agreement with Bengal Intelligent Parks Private Limited (BIPPL) to provide infrastructure support and facilities to the occupants at Bengal Intelligent Park – Classification and applicable GST rate on the services provided by the applicant by way of supplying fitted assets on hire basis - HELD -The assets provided by the applicant have lost their character as movable properties and have become part of the immovable property (the building). The assets are attached to the building in such a way that they cannot be removed or relocated without causing damage to the building. The nature and function of the assets are such that they are to be attached and fixed to the building for their basic operations – Further, the assets are integrated in a manner that they cannot be removed and sold separately in the market. Therefore, the applicant is not involved in the supply of leasing or renting of goods, and the services provided by the applicant cannot be classified under serial no. 17(iii) of the Notification No. 11/2017 – Central Tax (Rate) dated 28.06.2017 - the applicant is providing leasing or renting service of the benefits of the assets and machineries attached to the building for the smooth functioning of the tenants. The individual machinery as goods is not leased out to the tenants. The charge to the tenants is calculated on the basis of the specified super built area that a tenant is enjoying, and not on a goods-specific basis. Therefore, the supply of services by the applicant will qualify for leasing or rental services without operator under heading no. 9973, which finds entry under serial no. 17(viii) of the Notification No. 11/2017-Central Tax (Rate) Dated 28.06.2017. Accordingly, the supply being a mixed supply, it will attract the highest rate of tax, i.e. 18% GST – Ordered accordingly
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