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 20 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. Explanation.- For the purpose of this exemption, the Central Government, State Government or Union territory shall have 20 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. — GST rate 0%

As per Notification 12/2017 (amended by 16/2025), 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 20 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. explanation.- for the purpose of this exemption, the central government, state government or union territory shall have 20 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. classified under SAC Heading 9972 attracts 0% GST effective 22 September 2025. On an intra-state supply this is charged as 0% CGST plus 0% SGST; on an inter-state supply the full 0% is charged as IGST. This rate applies subject to the condition: Provided that the leased plots shall be used for the purpose for which they are allotted, that is, for industrial or financial activity in an industrial or financial business area; the State Government concerned shall monitor and enforce the above condition; in case of any violation or subsequent change of land use, the original lessor, original lessee as well as any subsequent lessee or buyer or owner shall be jointly and severally liable to pay such amount of central tax, as would have been payable but for the exemption, along with applicable interest and penalty; the lease/sale agreements shall incorporate these terms and the parties shall undertake to comply..