Case Law Details
In re Karnataka Solar Power Development Corporation Limited (GST AAR Karnataka)
1. The amount collected by the applicant towards LAD fund forms part of value of supply of rental/leasing service and hence is taxable under forward charge mechanism.
2. The applicable SAC for the impugned activity is 997212.
3. The exemption under S1.No.3 or 3A of Notification 12/2017-Central Tax (Rate) dated 28.06.2017 is not applicable in the impugned activity, as it is not qualify to be a pure service, provided to Central Government, State Government or Union Territory or Local Authority or a Government Entity by way of any activity in relation to any function under article 243 G or 243 W of the Constitution of India.
4. Payment of GST, under Reverse Charge Mechanism (RCM), under Entry 5 of Notification No.13/2017-Central Tax (Rate) dated 28.06.2017, on the payments made at the direction of the Committee formed for Local Area Development be considered as service rendered by Government to Applicant, is not applicable to the instant case, as the Government of Karnataka / Local Authority are not involved in provision of any service.
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