Case Title | Meerabai Tukaram Borade |
Court | Maharashtra AAAR |
Honorable Judges | Member Ashok kumar Mehta and Member Rajiv Kumar Mittal |
Citation | 2022 (4) GSTPanacea 394 HC Maharashtra MAH/AAAR/AM-RM/05/2022-23 |
Judgement Date | 01-April-2022 |
Council for Petitioner | Mr. Pritam Mahare |
Council for Respondent | Not Applicable |
In favour of | Assessee |
Section | Section 22, 51, 97 CGST Act, 2017 and Notification No. 12/2017- Central Tax (Rate) |
Authority for advance ruling, Maharashtra bench of Ashok kumar Mehta and Rajiv Kumar Mittal, has held that No GST exemption on renting of property to Govt for under-privileged Girl in absence of Proper Information.
FACTS OF THE CASE
The applicant, M/s. Meerabai Tukaram Borade submitted that the rental income from the properties, per annum, does not exceed the GST registration threshold i.e. Rs.20 lakhs. However, the total rental received exceeds the threshold provided under section 22(1) of the GST Act. Given the aforesaid, the Applicant is un-registered under CGST Act, 2017. However, Sahayak Ayukt Samaj Kalyan Vibhag is deducting TDS under Section 51 of the CGST Act, 2017. This TDS is resulting in cost for the Applicant.
The applicant further submitted that each co-owner receives rent, proportionate to his/her share in the immovable property and the income tax authority assesses them separately on the income so received. Merely because several persons jointly own an immovable property they cannot, therefore, be treated as ‘an association of persons or a body of individuals’. The co-owners, including the Applicant, have not been considered ‘an association of persons or a body of individuals for the purpose of income Tax. These co-owners have not formed any association to provide taxable service. The applicant has sought the advance ruling on the issue of whether the services provided by the applicant to Samaj Kalyan Department, State Government of Maharashtra (Social Welfare Department) for residential accommodation of underprivileged girls is exempt from GST.
Yet another issue raised was Whether TDS Provisions will be applicable in case where the supply of services is exempt.
COURT HELD
AR, Maharashtra held that, services provided by M/s Meerabai Tukaram Borade (Applicant) to Samaj Kalyan Department (SKD), Government of Maharashtra (GOM), for residential accommodation of underprivileged girls is not exempt as per the provisions of Notification No 12/2017-Central Tax (Rate) dated 28th June 2017 (Service Exemption Notification). Further, held that as the supply of service by the Applicant is not exempt supply, thus the TDS provision as per Section 51 of Central Goods and Services Tax Act, 2017 will also be applicable.
ANALYSIS OF THE JUDGEMENT
By noticing the above order we analyse that GST is payable on renting of property to Govt for under-privileged girls.
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