Order Date: 01 July 2022

Facts:

• The applicant, Karnataka Text Book society is a Society registered under the Karnataka Societies Act, 1960. It was established vide Government Order and promulgated to form an umbrella body in the context of preparation, printing and distribution activities of all Government approved school textbooks.
• The Applicant received rental income from a property owned by it, by leasing it to Karnataka Food and Civil Supplies Corporation Ltd.

Issue:

• Whether GST should be collected on rental income from property leased by the Appellant to Karnataka Food & Civil Supplies Corporation Limited (Government of Karnataka Undertaking), and if yes, whether rent received in January 2022 for past periods (2005-2021) is liable for GST?

Order:

• The Authorities observed that as per SI. No. 2(b) of schedule II of the CGST Act 2017, “any lease or letting out of the building including commercial, industrial or residential complex for business or commerce, either wholly or partly, is a supply”. 
• Since the Applicant has leased a property to Karnataka Food and Civil Supplies Corporation Ltd, the same is taxable at 9% CGST from 1.07.2017, as per SI. No. 16 of Notification No. 1 1/2017-Central Tax (Rate), dated 28.06.2017.