Case Law Details
In re Ramesh Kumar Jorasia (GST AAR Rajasthan)
Introduction: Understanding the tax implications for entities like Jaipur Development Authority (JDA) under the Goods and Services Tax (GST) is crucial. In this article, we delve into the specific case of JDA and its classification in relation to Entry 3A of Notification No. 12/2017.
Detailed Analysis: The crux of the matter revolves around whether JDA can be deemed a State Government entity according to Entry 3A. The applicant, M/S Ramesh Kumar Jorasia, seeks clarification based on the nature of services provided under a contract awarded by JDA. The key contention is whether JDA falls within the definition of “State Government” under the CGST Act and RGST Act.
The applicant argues that JDA, being established under the Jaipur Development Authority Act, 1982, is legally entitled to carry out functions as entrusted by the Government of Rajasthan. They present the organizational chart of JDA, emphasizing its connection to the Governor of Rajasthan, thus asserting its status as a State Government entity.
However, the analysis takes a different turn. It is highlighted that, as per GST definitions, a “local authority” includes bodies entrusted with the control of municipal funds. JDA, not being entrusted with such funds, fails to meet this criterion.
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Sir,
[Also see the following Advane Rulings of AAR, Rajasthan & AAR Karnataka, on the samer subjects;
PDCOR Ltd, Jaipur (Raj) (2018) 29 J.K.Jain’s GST & VR 312
Skilltech Engineers & Contractors Pvt. Ltd., Mysuru (Kar) : (2018) 29 J.K.Jain’s GST & VR 400]
CA Om Ptakash Jain s/o J.K.Jain, Jaipur
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