GST
TRT-2025-
AAR Rajasthan
Date:-14-12-22
In:-
Issue Favourable to Tax Payer ?:-
Order date – 14 December 2022
Facts –
- The applicant, Rajasthan Housing Board (RHB) is established on 24th February, 1970 vide Rajasthan Housing Board ordinance & later on notified under section 4 of the Rajasthan Housing Board Act 1970 (Act No. 4 of 1970).
- That the RHB is directly controlled by the State Government and all acts of the RHB are under the supervisory control of the State Government. Reference can also be made to section 60 of the RHB Act, which states that while exercising its powers and duties.
Issues –
- Whether the Rajasthan Housing Board is covered under the definition of "Governmental Authority" as defined in clause (zf) Paragraph 2 vide notification no. 12/2017- Central Tax (Rate) dated 28.06.2017?
- Whether services provided by the Rajasthan Housing Board as Governmental authority such as permission for building construction, approval of map, permission of additional Floor Area Ratio, leasing of land etc. are exempt ?
Order –
- The authorities observed that Rajasthan Housing Board (RHB) is established on 24th February, 1970 vide Rajasthan Housing Board ordinance & later notified under section 4 of the Rajasthan Housing Board Act 1970 (Act No. 4 of 1970). The RHB is constituted by the State Government and in light of section 5 of the Rajasthan Housing Board Act, 1970.The duties of Rajasthan Housing board are well defined in Sec 26 & 28 of Rajasthan Housing Board Act, 1970.
- RHB is constituted by State Government under Rajasthan Housing Board Act 1970 and fully controlled by state government, Thus its amply clear for us that RHB is Governmental Authority under GST Act.
- Hence, services provided by Rajasthan Housing Board in relation to any function entrusted to a municipality under article 243 W of the constitution are nil rated GST exempted vide S.No 4 of Notification No.12/2017-CT (Rate) dated 28.06.2017 as amended.
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