Home Case Index All Cases GST GST + AAR GST - 2021 (8) TMI AAR This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (8) TMI 143 - AAR - GSTApplicability of GST registration - Tamil Nadu Labour Welfare Board - rental income received by the board from Government and business entities - rent on immovable properties received by the board from Government and business entities - reverse charge mechanism - HELD THAT:- The applicant is constituted by the Government of Tamilnadu in the year 1972 by Tamilnadu Labour Welfare Fund Act 1972 (Act No.36 of 1972) enacted by the Legislature of the State of Tamil Nadu with a view to promote the welfare of the employees and their family/dependents with the Minister of Labour, Govt of Tamilnadu as the Chairman of the Board to administer the Tamilnadu Labour Welfare Fund and such other actions as assigned by or under the Act. They are executing and implementing various welfare schemes for the benefit of the workers who contribute to Labour Welfare Fund. They receive contribution from employees and matching contribution from employers and Government of Tamilnadu to the fund. The Tamil Nadu Labour Welfare Fund is receiving income which are in the nature of contributions, fines, donations, grand, borrowings etc (at present) and rental income from Government/business entities. The applicant is constituted by the Government of Tamilnadu in the year 1971 by an executive order of the Government (G.O.Ms No. 222 Labour Dept. dated 20.02.1971). The Tamilnadu Labour Welfare Fund Act 1972 was passed by the State and was given effect from 1.1.1973 and the statutory Board was formed effective 01.04.1975 - In the case at hand, the applicant do not have any power under the Tamilnadu Labour Welfare Fund Act for compulsory exaction of fees and the fund is paid by the levies as per the Payment of Wages Act, 1936, Tamil Nadu Shops and Establishments Act, 1947, etc. The only own source is the rental income received by the applicant on lease rentals of their commercial properties. Therefore, applying the above judis-prudence, we hold that the applicant is not a 'Local Authority' for the purposes of the GST Act. The entry No. 8 of Notification No. 12/2017-C.T.(Rate) dated 28.06.2017 exempts services provided by Central / State Government/ Union territory/ local authority to another Central /State Government/Union territory /local authority. In the case at hand, it has been established, that the applicant is not a 'Local authority', therefore, the exemption provided in the entry No. 8 of Notification No. 12/2017-C.T(Rate) dated 28.06.2017 is not available to the applicant and the applicant is to discharge the tax liability on the services of renting of commercial properties to Central/State Government/Local Authority. The applicant being not a 'Local authority' is liable to pay GST on the services of renting of immovable property to Government and business entities under forward charge. As the liability to pay the GST is on the applicant, the applicant has to get registered under GST. Tamilnadu Labour Welfare Board, being a person liable to pay GST, has to get registered under GST - The rental income received by the applicant from Government and business entities are taxable to GST - The applicant do not fall under the 'specified class of supplier of services' under Notification No.13/2017-C.T.(Rate) dated 28.06.2017 as amended by Notification No.03/2018 dated 25.01.2018 and therefore 'Reverse charge Mechanism' is not available to the applicant.
|