GST paid on exempted services to be refunded back without applying period of limitation

Nspira Management Services Private Limited Vs Assistant-Deputy Commissioner of Central Tax (Andhra Pradesh High Court)

Andhra Pradesh High Court held that since services by way of renting of residential dwelling for use as residents is exempted from payment of GST, GST already paid is to be refunded back without considering period of limitation. Thus, writ petition is allowed.

Facts- The petitioner is engaged in management of educational institutions, educational consultancy besides providing the same, also engaged in providing hostel accommodation services to students of various educational institutions.

In the process of its business, the petitioner had taken residential dwellings on rent from the respective landlords so as to provide accommodation to the students. As the landlords had been charged tax on the invoices issued by them, the petitioner has been paying tax on the renting of residential dwelling services. It is the case of the petitioner that the services received by the petitioner from the landlords fall under Entry No.12 of the Exemption Notification No.12 of 2017 – Central Tax (Rate) dated 28.06.2017 under Heading 9963 or 9972.

As already stated the petitioner paid tax to its landlords inasmuch as they had been charging tax on the invoices. In view of the Exemption Notification, the petitioner filed refund application seeking to refund the tax amount of Rs.11,49,32,214/- for the period July, 2017 to January, 2020. Similarly, for the period February, 2020 to June, 2022, refund application was filed on 29.02.2024.