Rajasthan Housing Board, A Govt. Authority - Services Exempted From GST: AAR

The Rajasthan Authority for Advance Ruling (AAR) has held that services provided by the Rajasthan Housing Board in relation to any function entrusted to a municipality under Article 243 W of the Constitution are exempt from GST.

The two-member bench of Umesh Kumar Garg and M.S. Kavia has observed that the Rajasthan Housing Board is covered under the definition of "government authority."

The applicant, Rajasthan Housing Board (RHB), was established on February 24, 1970, by the Rajasthan Housing Board ordinance and was later notified under Section 4 of the Rajasthan Housing Board Act 1970. The RHB is constituted by the state government, and in light of Section 5 of the Rajasthan Housing Board Act, 1970, the chairman and all the members of the RHB are appointed by the state government.

The applicant has sought an advance ruling on the issue of whether the Rajasthan Housing Board is covered under the definition of "governmental authority." Yet another issue raised was whether the services provided by the Rajasthan Housing Board as a governmental authority, such as permission for building construction, approval of a map, permission for an additional floor area ratio, leasing of land, etc., are exempt from GST.

The authority observed that the various services or functions of RHB, such as granting permission for building construction, approval of building map, permission for additional floor area ratio, services of leasing of land, betterment levy, etc., are covered under the functions entrusted to a municipality under Article 243W of the Constitution and therefore exempt under GST under entry 4 of the exemption notification no. 12/2017-Central Tax (Rate) dated 28.06.2017.

Applicant's Name: Rajasthan Housing Board

Date: 14.12.2022

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