In re K A Sujit Chandan (GST AAR Karnataka)
In the case of M/s K A Sujit Chandan, the applicant sought an Advance Ruling under Section 97 of the CGST Act, 2017, and KGST Act, 2017 regarding the taxability of rent received from the Department of Social Welfare, Government of Karnataka. The property in question, located at No. 30, 4th Cross, 2nd Main Road, Kengeri Satellite Town, Bengaluru, was rented out to the government for operating a boys’ hostel.
Key Questions Raised:
The primary question posed by the applicant was whether the rent received from the Department of Social Welfare is taxable under GST.
Admissibility of the Application:
The application was found admissible under Section 97(2)(e) of the CGST Act, 2017, as it pertains to the “determination of the liability to pay tax on any goods or service or both.”
Facts Presented:
The applicant provided the following facts:
- They rented out their building to the Department of Social Welfare for operating a hostel for boys from Scheduled Tribes.
- They argued that services provided to the government under such agreements are exempted under Article 243W of the Constitution, which pertains to functions entrusted to Municipalities.
Proceedings and Findings:
During the personal hearing, the authorized representative reiterated the facts and arguments presented in the application.
