In re Manappuram Finance Limited (GST AAR Kerala)
No GST on fees paid to State government for change of land description
The AAR, Kerala, in the matter of Manappuram Finance Limited [Advance Ruling No. KER/13/2023 dated April 03, 2023] ruled that the payment made to state government for the change of land description does not attracts GST since, the service provided by the State government are covered is in relation to a function entrusted to Panchayat under Article 243G of the Constitution.
Facts:
M/s. Manappuram Finance Limited (“the Applicant”) is a non-banking financial company. The Applicant generates income from gold loans, money transfer business, purchase, and sale of foreign currency etc. and owns a land in Valapad village in Thrissur district which is a wetland as per the records of the village authorities.
The Applicant had paid the fees to the State government as per the provisions of Kerala Conservation of Paddy land and Wetland Act, 2018 for change in description of land from wetland to dry land in the village office records for the purpose of construction of office complex.
The Applicant filed an application before the AAR, Kerala, seeking the clarification whether payment made to the state government for change of land description attracts GST under reverse charges or not.
Issue:
Whether the payment made to the State government regarding the change of land description attract GST under reverse charge?
Held:
The AAR, Kerala, in Advance Ruling No. KER/13/2023 held as under:
