GST on reimbursement of municipal property tax by lessee / occupier

In re Kolay Properties Ltd (GST AAR West Bengal)

Authority for Advance Rulings (AAR), West Bengal, examined the applicability of GST on the reimbursement of municipal property tax by a lessee in the case of Kolay Properties Ltd. The applicant had entered into a lease agreement with Andhra Bank (later merged into Union Bank of India) for premises in Kolkata. Under the lease, the bank was obligated to reimburse 50% of the municipal property tax paid by the lessor. The applicant sought clarity on whether GST should be applied to this reimbursement.

The applicant argued that pr

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