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TMI Blog2025 (4) TMI 1051X X X X Extracts X X X X X X X X Extracts X X X X ..... on 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 given on rent for 36 months form 31st December 2022to 31th December 2025. 1.4. The mont ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 renting of immovable property services and thus, it's a pure service (as no specific goods are supplied). 2.8. Further services are given to the Dep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lfth 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 case of "...payment made or credited to the supplier (hereafter in this section referred to as "the deductee") of taxable goods or services or both, where the total value of such supply, under a contract, exceeds two lakh and fifty thousand rupees" 2.15. In the view of the aforesaid, unless the supply is "ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t 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 Forward charge mechanism? Ans: The tax on the renting services (SAC: 997211) falls under forward charge mechanism. Question 4) As both owners are registered under GST, separately, is it appropriate to disclose all receipts on applicants' registration number? Ans: As both the owners are registered under GST separately but immovable property is jointly owned by two persons. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rnment 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 in relation to any functions entrusted to a Panchayat under article 243G or to a municipality under article 243W of the Constitution of India. The functions entrusted to a Panchayat and to a municipality under article 243G and 243W of the Constitution have been listed in the eleventh and twelfth schedule of the Constitution respectively. 5.6 We observe that the Assistant Commissioner, Social Justice Department of Government of Maharashtra, Ahmednagar h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ified 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 scheduled tribes. 28 ..... " Further, Article 243 W of the Constitution of India provides as below: "243W. Powers, authority and responsibilities of Municipalities, etc .- Subject to the provisions of this Constitution, the Legislature of a State may, by law, endow- (a) the Municipalities 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 Municipalities, subject to such conditio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y 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 Authority has ruled that, "the applicant has rented his property to Backward Classes Welfare Department, Government of Karnataka, who in turn are using the same for providing hostel facilities to the post metric girls of backward classes. This is in relation to the function entrusted to a panchayat under article 243G of the Constitution which is covered by 27th Entry of 11th schedule which says 'Welfare of weaker sections, and in particular, of scheduled castes and the scheduled tribes'". Similar view is also taken in the case of Rimita Mukherjee, Order number 15/WBAAR/2024-25 dated 11.12.2024 passed by West Benga ..... X X X X Extracts X X X X X X X X Extracts X X X X
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