2020 (1) TMI 1093 - AAR - GST

Authority denies GST exemption due to lack of details on government entity's activities. Clarity crucial for eligibility.

IN RE : AWAS BANDHU

IN RE : AWAS BANDHU - 2020 (32) G.S.T.L. 584 (A. A. R. - GST - U. P.) Issues:- Whether the applicant, a State Government-owned entity, can be exempt from GST regime based on their activities.Analysis:The applicant, a registered assessee under CST with GSTN, sought clarification through an application for Advance Ruling regarding their exemption from the GST regime. The applicant provides services to assist the U.P. Housing Ministry in implementing policies for affordable housing. The application was accompanied by the required fee and forwarded to the Jurisdictional GST Officer for comments. A personal hearing was granted, during which it was argued that being a State Government entity, the activities should be exempt from GST.Upon examination, it was noted that the applicant's activities were aimed at helping the government provide affordable housing, but specific details of the activities were not provided in the application. The applicant relied on Notification No. 12/2017-Central Tax (Rate) and provisions of the 12th Schedule of the Constitution related to urban planning and poverty alleviation. However, the lack of specific information on the activities performed hindered a definitive ruling on the exemption from GST.The Authority for Advance Ruling unanimously ruled that without specific details on the activities carried out by the applicant, it was premature to determine their exemption from the GST regime. Consequently, the application for Advance Ruling was rejected, emphasizing the necessity of providing detailed information on the specific activities to assess eligibility for exemption.