M.Srinivasan VS  Union Of India

The case under consideration involves writ petitions challenging the demand by the Southern Railway for payment of 18% GST on the license fee granted to private contractors for operating vehicle parking facilities. The court begins by examining the relevant legal provisions regarding the imposition of 18% GST specifically on parking areas managed by Southern Railway through private contractors.

Section 2 of the Central Goods and Services Tax (CGST) Act provides definitions, where “services” are defined as anything other than goods, money, and securities, but inclusive of activities related to the use or conversion of money for which a separate consideration is charged. This definition clarifies that services include facilitating or arranging transactions in securities.

Moving on to Chapter III, which pertains to the levy and collection of tax, Section 7 delineates the scope of supply. This section outlines the parameters within which GST is applicable to various transactions and activities.

However, the summary doesn’t go beyond this point. If you need further elaboration or discussion on specific aspects of the case or legal provisions, feel free to ask.

These writ petitions challenge the demand by the Southern Railway for an 18% GST payment on license fees granted to private contractors for operating vehicle parking. The court begins by examining relevant legal provisions. Section 2 of the CGST Act defines “services” broadly, encompassing any activity apart from goods, money, and securities, including transactions involving money’s use or conversion for a separate charge.

Moving to Chapter III on levy and tax collection, Section 7 defines the scope of supply under GST, covering various transactions involving goods, services, or both, including licenses, rentals, and leases made in the course of business. It also includes activities listed in Schedule I without consideration and those in Schedule II, which dictate whether certain activities are treated as supplies of goods or services. Furthermore, Section 7(1-A) and Schedule III exempt specific activities from being treated as supplies, while allowing the government to specify transactions as either goods or services based on recommendations.

Specifically, Schedule II addresses activities or transactions to be treated as supplies of goods or services. Sub-clause (2) mentions land and buildings as such activities.

These writ petitions are centered around the challenge against the demand by the Southern Railway for a payment of 18% GST concerning the license fee given to private contractors operating vehicle parking facilities. The court first examines the legal provisions regarding the imposition of 18% GST on parking areas managed by Southern Railway through these contractors.

The court begins by delving into the definitions provided in Section 2 of the CGST Act. It defines “services” as encompassing anything other than goods, money, and securities, including activities related to the use of money. This includes facilitating or arranging transactions in securities.

Moving on to Chapter III of the Act, which deals with the levy and collection of tax, Section 7 outlines the scope of supply. It includes all forms of supply of goods or services for a consideration in the course or furtherance of business. Additionally, it covers activities specified in Schedule I made without a consideration, as well as those in Schedule II, which are treated as either supply of goods or services.

Schedule II, particularly Sub-clause (2), specifies that any lease, tenancy, or license to occupy land is considered a supply of services. This encompasses leasing or letting out of buildings for business or commerce. Therefore, according to Section 7(1-A), such activities are treated as either supply of goods or services as per Schedule II.

Further, Sub-clause (5) to Schedule II lists renting of immovable property and construction of buildings as supplies of services. It clarifies that construction includes additions, alterations, replacements, or remodeling of existing structures. Temporary transfer or permitting the use of intellectual property rights is also considered a supply of services.

In essence, the court is examining whether the activities related to vehicle parking, conducted by private contractors under the Southern Railway, fall under the definition of “services” as outlined in the CGST Act. This analysis involves interpreting various provisions of the Act, particularly those related to the scope of supply and the treatment of certain activities as supplies of services.

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