No GST on fees paid to State government for change of land description

Last updated: 22 July 2023

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Quick Summary

The Kerala Authority for Advance Ruling (AAR) has determined that fees paid to the state government for changing a land's description from wetland to dry land are not subject to GST. This ruling applies because the service provided by the government is related to functions entrusted to a Panchayat under the Indian Constitution. Therefore, such payments are not considered a supply of goods or services for GST purposes.

Court :
AAR, Kerala

Brief :
The AAR, Kerala, in the matter of Manappuram Finance Limited [Advance Ruling No. KER/13/2023 dated April 03, 2023] ruled that the payment made to state government for the change of land description does not attracts GST since, the service provided by the State government are covered is in relation to a function entrusted to Panchayat under Article 243G of the Constitution.

Citation :
The AAR, Kerala, in the matter of Manappuram Finance Limited [Advance Ruling No. KER/13/2023 dated April 03, 2023] ruled that the payment made to state government for the change of land description does not attracts GST since, the service provided by the State government are covered is in relation to a function entrusted to Panchayat under Article 243G of the Constitution.

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