Court :
Tamil Nadu Authority for Advance Ruling
Brief :
In M/s. Tamil Nadu Labour Welfare Board [TS-399-AAR(TN)-2021-GST dated June 18, 2021], M/s. Tamil Nadu Labour Welfare Board ('the Applicant') seek an advance ruling on applicability of Goods and Services Tax ('GST') on registration of the Applicant and rental income received by the Applicant from the Government and business entities along with whether Reverse Charge Mechanism ('RCM') is applicable on the above stated income.
Citation :
TS-399-AAR(TN)-2021-GST dated June 18, 2021
In M/s. Tamil Nadu Labour Welfare Board [TS-399-AAR(TN)-2021-GST dated June 18, 2021], M/s. Tamil Nadu Labour Welfare Board ('the Applicant') seek an advance ruling on applicability of Goods and Services Tax ('GST') on registration of the Applicant and rental income received by the Applicant from the Government and business entities along with whether Reverse Charge Mechanism ('RCM') is applicable on the above stated income.
The Hon’ble Tamil Nadu Authority for Advance Ruling ('TNAAR') held that the Applicant is not covered under the head of 'Local Authority' under Section 2(69) of Central Goods and Services Tax Act, 2017 ('CGST Act') for reason that the members are not elected but appointed by the Government and being a body corporate, it has a separate legal existence.
Further, relying on Notification No. 13/2017-C.T.(Rate) dated June 28, 2017 amended by Notification No. 03/2018 -C.T.(Rate) dated January 25, 2018, the TNAAR stated that Applicant does not fall under 'specified class of supplier of services' thus, RCM is not applicable on the Applicant.
Therefore, the Applicant not being a Local Authority has to be registered under GST as well as liable to pay GST on the services of renting of immovable property to Government and business entities under forward charge.
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