TaxTMI 
TaxTMI 
2025 (4) TMI 1051
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.... on applicants' registration number? 5. Whether separate registration Under GST is required by joint name? That the provisions of both the CGST Act and the MGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to any dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the MGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, the expression 'GST Act' would mean CGST Act and MGST Act. 01. FACTS AND CONTENTIONS - AS PER THE APPLICANT 1.1) The property is situated at C.S. No. 690 5, Plot no. 24, Balikashram Road, Ahmednagar-414001. Property jointly owned by applicant and his brother. Mr. Ravindra Navnath Satpute Registered wide GSTIN 27CUGPS5735J1Z1 and Mr. Devndra Navnath Satpute registered wide GSTTN 27BJZ1SO332LLZI. 1.2. Property is being provided on rental basis to the Sant Sakhubai Government Girls Hostel Ahmednagar, a hostel run by the Department of Social Justice & Special Assistance Department of Maharashtra Government. Said hostel is registered under GST as TDS Deductor wide GSTIN 27PNES19339F1DZ. 1.3. The property is gi....
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....the case. We hereby refer Notification No. 12/2017-Central Tax (Rate) dated 28th June 2017. We request you to consider the following: 2.5. As per Sr.no. 3 under Chapter 99 of Notification No. 12/2017-Central Tax (Rate) states Pure services (excluding works contract service or other composite supplies involving supply of any goods) provided to the Central Government, State Government or Union territory or local authority by way of any activity in relation to any function entrusted to a Panchayat under article 243G of the Constitution or in relation to any function entrusted to a Municipality under article 243W of the Constitution are exempt from GST. 2.6. It can be seen that there are three conditions to satisfy for the exemption: a) Service provided should be a 'pure service' b) Service should be provided, inter-alia, 'to' State Government c) Service provided should be by way of any activity in relation to any function entrusted to a Panchayat under article 243G of the Constitution or in relation to any function entrusted to a Municipality under article 243W of the Constitution. 2.7. In this regard, we observed that the services provided are r....
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....h Schedule; (b) by the Committees with such powers and authority as may be necessary to enable them to carry out the responsibilities conferred upon them including those in relation to the matters listed in the Twelfth Schedule." 2.11. In this regard, Twelfth Schedule of Constitution of India provides as under: "TWELFTH SCHEDULE (Article 243W) "1. ... 3. Planning for economic and social development 9. Safeguarding the interest of weaker sections of society, including handicapped and mentally retarded 10 ...;' 2.12. In the instance case the State Government is taking the property of rent for welfare of under-privileged section of the society and in particular, girls. Thus, as the services are provided to "Sant Sakhubai Government Girls Hostel Ahmednagar", the services will be covered under the functions entrusted under Article 243W and or 243G. 2.13. Given aforesaid as the services are covered under sr. no 3 chapter 99 of the Notification No. 12/2017-CT dated 28.06.2017 (as amended from time to time), the said services are exempt from GST. 2.14. It may be noted that the Section 51 of CGST Act, 2017 is applicable in ca....
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....ovable property services by the applicant is not liable for exemption under the provisions of Entry No. (3) Of Notification No. 12/2017-CT(R) dated 28.06.2017. Question 02) If the service is taxable, then what will be the time of supply? Ans- time of supply regarding this service shall be as prescribed in sec. 13 (2) of CGST/MGST Act 2017. Sec 13 (2) is reproduced here for ready reference. *Section 13. Time of Supply of Services .- 13 (2) The time of supply of services shall be the earliest of the following dates, namely :- (a) the date of issue of invoice by the supplier, if the invoice is issued within the period prescribed under section 31 or the date of receipt of payment, whichever is earlier; or (b) the date of provision of service, if the invoice is not issued within the period prescribed under section 31 or the date of receipt of payment, whichever is earlier; or (c) the date on which the recipient shows the receipt of services in his books of account, in a case where the provisions of clause (a) or clause (b) do not: apply Question 3) If the service is taxable, then whether Tax is payable under Reveres charge or under F....
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.... of the Constitution or in relation to any function entrusted to a Municipality under article 243W of the Constitution. Nil Nil 5.3 It can be observed that there are three conditions to be satisfied for the exemption under entry 3 of the of the Notification No. 12/2017-C.T. (Rate) dated 28.06.2017. a) Service provided should be a 'pure service'; b) Service should be provided, to the Central Government or State Government or Union territory or local authority; c) Service provided should be by way of any activity in relation to any function entrusted to a Panchayat under article 243G of the Constitution or in relation to any function entrusted to a Municipality under article 243 W of the Constitution; 5.4 In this regard, we observe that the services provided are renting of immovable property services. These supplies of services do not involve any supply of goods and can be regarded as pure services. Further, the services are given to Social Justice and Special Assistance Department of Maharashtra Government. Thus, the services have been provided to the State Government. 5.5 Now the issue left with us is to decide whether the said service is i....
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....er: "243G. Powers, authority and responsibilities of Panchayats. Subject to the provisions of this Constitution, the Legislature of a State may, by law, endow the Panchayats with such powers and authority as may be necessary to enable them to function as institutions of self-government and such law may contain provisions for the devolution of powers and responsibilities upon Panchayats at the appropriate level, subject to such conditions as may be specified therein, with respect to: (a) the preparation of plans for economic development and social justice; (b) the implementation of schemes for economic development and social justice as may be entrusted to them including those in relation to the matters listed in the Eleventh Schedule." In this regard, relevant entries of the Eleventh Schedule of the Indian Constitution are enumerated as under: ELEVENTH SCHEDULE (Article 243G of the Indian Constitution) 1 .... .. .. 25 Women and Child development 26. Social welfare, including welfare of handicapped and mentally retarded. 27. Welfare of weaker sections, and of scheduled castes and the schedule....
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....enting out of immovable property, provided by the Appellant to the State Government, will definitely be construed as an activity in relation to the function entrusted to a Panchayat under article 243G of the Constitution, or in relation to the function entrusted to a Municipality under article 243 W of the Constitution, and thereby, are rightly eligible for exemption from GST in terms of the exemption entry at Sl. No. 3 of the Notification No. 12/2017-C.T. (Rate) dated 28.06.2017. 5.10 The Maharashtra Appellate authority has set aside the Advance Ruling No. GST-ARA-595/2019-20/B-85 dated 02.11.2021, passed by the MAAR in the case of Shital Tukaram Borade and held that the impugned services of the renting out of immovable properties provided by the Appellant to the Social Justice Department of the Government of Maharashtra as be exempt from the levy of GST in terms of Sl. No. 3 of the Notification No. 12/2017-C.T. (Rate) dated 28.06.2017 (Appellate Advance Ruling No. MAH/AAAR/AM-RM/05/2022-23 dated 01.04.2022). 5.11 A similar view has also been expressed by AAR Karnataka in the case of Sri Puttahalagaiah G.H. [Advance Ruling No. KAR/ADRG/19/2021 dated 06.04.2021] wherein the A....