Bagalkot Nirmithi Kendra Vs Union of India (Karnataka High Court)
Karnataka High Court held that Society controlled by the State Government and funded by State Government covered within definition of clause (zfa) i.e. within ‘Government Entity’ as covered vide notification 32/2017 dated 13.10.2017 and hence exempted from GST tax liability.
Facts- The petitioner is a Society registered under the Karnataka Societies Registration Act, 1960, which comes into existence in terms of a government order dated 05.09.1990. The establishment of the petitioner is said to be under the National Network Programme of Building Centres Scheme, by the Housing and Urban Development Corporation of the Government of India, in furtherance of the Scheme notified. The petitioner is exclusively engaged in civil construction works for the State and Central Governments. The rules and regulations of the petitioner are all said to necessitate approval from the hands of the State.
On 29.06.2017, a notification is issued by the fifth respondent – the Ministry of Finance, the Government of India exempting tax liability on certain entities for supply of services after the emergence of GST regime. On 13.10.2017, a notification is issued by the State, Finance Department, amending the definition of ‘Government Entity’ by including Clause (zfa).
