Supply of services by Co-venture to the business attracts GST

Last updated: 31 July 2023
Quick Summary
The Kerala Authority for Advance Ruling (AAR) has determined that when an organisation enters into a joint venture with another entity to operate an educational institution, the supply of services to this joint venture will attract Goods and Services Tax (GST). This is because, for tax purposes, the organisation and the joint venture are considered separate 'persons'. The ruling clarifies that such arrangements, involving shared risks and revenues, create a distinct entity that can be subject to taxation on the services provided.

Court :
AAR, Kerala

Brief :
The AAR, Kerala, in the matter of M/s Choice Foundation [Advance Ruling No. KER/10/2023 dated March 10, 2023] ruled that supply of services to assessee to its own joint venture would attract GST as per Notification No. 11/2017 Central Tax (Rate) dated June 28, 2017 (“the Service Rate Notification”) since, the assessee and the joint venture are 2 different ‘person’ for the taxation laws.

Citation :
Advance Ruling No. KER/10/2023 dated March 10, 2023

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Bimal Jain
Published in GST
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