Providing pure service in terms of renting of building to Backward Classes Welfare Department is exempted from GST
Levy of GST- In the instant case, the applicant has applied for advance ruling as unregistered dealer under the provisions of the GST Act, 2017. The applicant is letting out his building to the Department of Backward Classes Welfare, Government of Karnataka to run post-metric Girl's Hostel.
The applicant has sought advance ruling in respect of the following question:-
Whether Rent received from Backward Classes Welfare Department, is taxable or not?
The applicant has rented his property to the Backward Classes Welfare Department, Government of Karnataka, who in turn is using the same for providing hostel facilities to the post metric girls of backward classes. This is in relation to the function entrusted to a panchayat under Article 243G of the constitution which is covered by 27th entry of 11th schedule which says Welfare of the weaker sections, and in particular, of the Scheduled Castes and the Scheduled Tribes.
Held that- The said transaction carried out by the applicant providing pure service in terms of renting of building to Backward Classes Welfare Department, Government of Karnataka for the purpose of an activity in relation to a function entrusted to a Panchayat under Article 243G of the Constitution and consequently is exempted from payment of taxes as per entry number 3 of Notification No. 12/2017-Central Tax (Rate) dated 28-06-2017.
Providing pure service in terms of renting of building to Backward Classes Welfare Department is exempted from GST
Levy of GST- In the instant case, the applicant has applied for advance ruling as unregistered dealer under the provisions of the GST Act, 2017. The applicant is letting out his building to the Department of Backward Classes Welfare, Government of Karnataka to run post-metric Girl's Hostel.
The applicant has sought advance ruling in respect of the following question:-
Whether Rent received from Backward Classes Welfare Department, is taxable or not?
The applicant has rented his property to the Backward Classes Welfare Department, Government of Karnataka, who in turn is using the same for providing hostel facilities to the post metric girls of backward classes. This is in relation to the function entrusted to a panchayat under Article 243G of the constitution which is covered by 27th entry of 11th schedule which says Welfare of the weaker sections, and in particular, of the Scheduled Castes and the Scheduled Tribes.
Held that- The said transaction carried out by the applicant providing pure service in terms of renting of building to Backward Classes Welfare Department, Government of Karnataka for the purpose of an activity in relation to a function entrusted to a Panchayat under Article 243G of the Constitution and consequently is exempted from payment of taxes as per entry number 3 of Notification No. 12/2017-Central Tax (Rate) dated 28-06-2017.