IQBAL Mubarik Vs U.T of Jammu & Kashmir (Jammu & Kashmir High Court)
Jammu Kashmir High Court held that GST is leviable on rental income received by renting out hotel premises to the Police Department of Government of Jammu and Kashmir. Thus, Department of Home directed to reimburse the GST amount.
Facts- The petitioner is owner of a hotel premises known by the name of “Hotel Boulevard” situated at Dalgate, Srinagar. The hotel premises owned by the petitioner are rented out to the Police Department of the Government of Jammu and Kashmir for the purpose of accommodating the Central Security Forces who are engaged in maintaining law and order in the valley. On the basis of the recommendations made by the concerned Rent Assessment Committee, the petitioner had been receiving rent at the rate of Rs. 300/- per day per room.
The short grievance projected by the petitioner in this petition is that, on the one hand the Government is reluctant to revise the per day per room rental fixed way back in the year 2013, and on the other hand the respondent Nos. 5 and 6 (the GST Authorities) have raised a demand under the Jammu and Kashmir Goods and Services Tax Act, 2017.
