Mushtaq Ahmad Bhat Vs U.T of Jammu & Kashmir Through Commissioner Secretary Govt. of J&K (Jammu & Kashmir High Court)
The Jammu & Kashmir High Court has ruled that the Union Territory’s Home Department is liable to pay Goods and Services Tax (GST) in addition to the fixed rent for hotel accommodations it occupies. This decision came in the case of Mushtaq Ahmad Bhat versus the U.T. of Jammu & Kashmir, with the court citing a directly applicable precedent from a prior ruling in WP(C) No. 1154/2024.
The court clarified that the petitioner, a hotelier, is obligated to pay GST on the income derived from the Home Department’s hotel accommodation. Therefore, the petitioner must obtain appropriate registration under the CGST/Jammu and Kashmir GST Act and deposit the service tax with the GST authorities.
Crucially, the judgment mandates that the Department of Home, Government of Jammu and Kashmir, will be responsible for paying the prescribed GST rate in addition to the per-room, per-day rent. This payment obligation for GST by the Home Department commences from August 2025. The petitioner is directed to complete the GST registration process by July 31, 2025, to facilitate the collection and deposit of these taxes.
The High Court also suggested that the Home Department establish a proper Rent Assessment Committee to revise rental rates for long-term hotel accommodations.
