In re Rajasthan Housing Board (GST AAR Rajasthan)
Housing Board established by the government is a ‘Government Authority’ and services provided by them are exempt from GST. AAR Further held that Rajasthan Housing Board is a Governmental Authority as defined for the purpose of levy of GST.
The AAR, Rajasthan in the matter of M/s. Rajasthan Housing Board [Advance Ruling No. RAJ/AAR/2022-23/20 dated December 14, 2022] has ruled that Rajasthan Housing Board (“RHB”) is covered under the definition of “Governmental Authority” as defined in clause (zf) Paragraph 2 vide Notification No. 12/2017- Central Tax (Rate) dated June 28, 2017 (“the Services Exemption Notification”) and services provided by them in relation to any function entrusted to a municipality under Article 243 W of the Constitution will be nil rated Goods and Services Tax (“GST”) and exempted vide Sl. No. 4 of the Services Exemption Notification.
Facts:
M/s Rajasthan Housing Board (“the Applicant”) was established vide an ordinance and later on notified under Section 4 of the Rajasthan Housing Board Act, 1970 (“the RHB Act”). The administrative cost of the Applicant is borne by the State Government by making grant and it is directly controlled by the State Government. The RHB Act empowers the State Government to dissolve the Applicant by publishing a notification to give effect to such dissolution.
The Applicant submitted that it is a “Government Authority” and the services provided by them are exempt in GST vide Sl. No. 4 of the Services Exemption Notification, which has two parts i.e. service must be by a ‘Government Authority’ and it should be in relation to any function entrusted to a municipality under Article 243 W of the Constitution. As the Applicant is established by the State Government with 100% control of Government and to ensure affordable housing in environmentally invigorating habitats with inclusive facilities especially for the economically weaker sections of the society, it is covered under the Article 243 W of the Constitution.
Issues:
(1) Whether the Applicant is covered under the definition of “Government Authority”?
(2) Whether the services provided by the Applicant as governmental authority are exempt under entry S. No. 4 of the Services Exemption Notification?
Held:
The AAR, Rajasthan in Advance Ruling No. RAJ/AAR/2022-23/20 held as under:
