Rajasthan’s GST AAR ruled that the Rajasthan Housing Board is exempt from GST for services it provides regarding any function entrusted to it under Article 243 W.
A bench which consists two-member, Umesh Kumar Garg and M.S Kavia held that the Rajasthan Housing Board is protected under the definition of “government authority.”
Read Also: GST Rule May Impact Rent-free Houses to Employees, How!
According to Section 4 of the Rajasthan Housing Board Act 1970, the applicant, Rajasthan Housing Board (RHB), was created on February 24, 1970, by the Rajasthan Housing Board ordinance. Section 5 of the Rajasthan Housing Board Act, 1970 stipulates that the state government appoints the chairman and all of the RHB members.
A preliminary ruling has been requested on whether the Rajasthan Housing Board is considered a governmental authority by the applicant. Another question was whether the Rajasthan Housing Board’s services, as a governmental authority, are exempt from GST, approval of a map, permission to construct a building, leasing of land, approval to increase the floor area ratio, etc.
A report by the authority states that the functions of the RHB include granting permission for building construction, approving additional floor area ratios, leasing of land, betterment levy, approving building maps, etc. are covered according to entry 4 of the exemption GST notification no. 12/2017-Central Tax (Rate) dated 28.06.2017, this property is entrusted to a municipality under Article 243W of the Constitution.
| Applicant Name | Rajasthan Housing Board |
| Advance Ruling No. | RAJ/AAR/2022-23/20 |
| Date | 14.12.2022 |
| GSTIN for Applicant | 08AAALR0046F1ZA |
| Rajasthan GST AAR | Read Order |
