TaxTMI 
TaxTMI 
2025 (7) TMI 624
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....ANZOOR A. DAR, ADVOCATE WITH MS. MUZAMIL JABEEN, ADVOCATE FOR THE RESPONDENT : MR. MOHSIN QADRI, SR. AAG WITH MS. MAHA MAJEED, ASSISTING COUNSEL JUDGMENT Per : Sanjeev Kumar-J. 1. The petitioner is owner of a hotel premises known by the name of "Hotel Boulevard" situated at Dalgate, Srinagar. The hotel premises owned by the petitioner are rented out to the Police Department of the Government of Jammu and Kashmir for the purpose of accommodating the Central Security Forces who are engaged in maintaining law and order in the valley. 2. On the basis of the recommendations made by the concerned Rent Assessment Committee, the petitioner had been receiving rent at the rate of Rs. 300/- per day per room. These rates were fixed by th....
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....ner also prays for a direction to the respondent nos. 5 and 6 to recover the payment towards GST payable on hiring charges from the Police Department. 5. The writ petition is contested by the respondents No. 5 and 6 (the GST Authorities) who, in their objections, have submitted that after coming into force of Goods and Services Tax Act, 2017, the accommodation in hotels, food and beverage services became taxable under GST Act, 2017, @12% in respect of a unit of accommodation with a declared tariff of Rs. 1000/- and above but less than Rs. 2500/- per day per unit. There was no GST on accommodation in a hotel having declared tariff below Rs. 1000/-. It is submitted that in terms of notification No. 12 of 2017 dated 28.06.2017, the aforesai....
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....ct of accommodation in a hotel (commercial accommodation) on the declared tariff per unit per day is exigible to GST? (ii) If the answer to question No. 1 is in the affirmative, whether the Department of Home (the tenant herein) is under a legal obligation to disburse the agreed, rental along with GST to the landlord? 8. With the implementation of Goods and Services Tax regime in the year 2017, and the coming into force of the Central Goods and Service Tax Act, 2017 (CGST Act) and the Jammu and Kashmir Goods and Services Act, 2017 (J&K GST Act), brought significant transformation in the taxation laws, particularly in relation to rental income. Renting a property, whether residential or commercial, is classified as a supply of se....
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....rse or furtherance of business ; (b) import of services for a consideration whether or not in the course or furtherance of business ; (c) the activities specified in Schedule I, made or agreed to be made without a consideration ; and (d) the activities to be treated as supply of goods or supply of services as referred to in Schedule II. (2) Notwithstanding anything contained in sub-section (1),-- (a) activities or transactions specified in Schedule III ; or (b) such activities or transactions undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities, as may be notified by the Government on the recommendations of the Co....
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....d in the tariff determined to be paid by the Government to the hoteliers like the petitioner. 12. We have given our thoughtful consideration to this aspect of the matter, and we are of the firm opinion that the tariff per unit per day in respect of the hotel accommodation of the petitioner has been fixed by the Government on the recommendations made by the Rent Assessment Committee much prior to the year 2017, when the GST regime was not implemented. It is, thus, obvious that the levy of GST was not contemplated while fixing the tariff by the Rent Assessment Committee. With the implementation of GST regime and enforcement of Central CGST Act and Jammu and Kashmir GST Act, the income derived by the petitioner and other hoteliers, who had ....