Kerala Infrastructure And Technology For Education Vs Union of India (Kerala High Court)
Kerala High Court held that receipt of government grant to meet day-to-day expenses cannot be deemed to be consideration for provisions of goods or services and hence GST not leviable on the same.
Facts- The petitioner is a Company registered u/s. 8 of the Companies Act, 2013 and is an entity registered u/s. 12AA of the Income Tax Act, 1961. 99.99% of its shares are held by the Government of Kerala. Notably, the entire funding of the petitioner is by the Government through the Kerala Infrastructure Investment Fund Board (KIIFB), which is again a statutory body under the Government of Kerala.
The petitioner is before this Court challenging order of adjudication issued by the 3rd respondent under the provisions of the CGST/SGST Acts holding that the petitioner is liable to pay Goods and Services Tax amounting to Rs.99,05,74,260/-for the period from July 2017 to March 2021 and interest thereon and imposing a penalty of Rs. 4,95,28,713/- on the petitioner principally on the premise that the petitioner is effecting a composite supply of goods and services to the schools and is therefore liable to pay Goods and Services Tax.
