The Maharashtra Authority of Advance Ruling (AAR) has ruled that no Goods and Service Tax (GST) is payable on service of renting of residential building to the Social Justice and Special Assistance Department of Maharashtra Government for running a hostel for the backward class girls.

The bench of D. P. Gojamgunde and Priya Jadhav has observed that as the activities related to residential accommodation of the girls or women, belonging to the Backward Classes are held to be exempt from the levy of GST, there is no question of application of the TDS provisions under Section 51 of CGST Act.

The applicant is the owner of the property. The property is being provided on rental basis to the Sant Sakhubai Government Girls Hostel Ahmednagar, a hostel run by the Department of Social Justice & Special Assistance Department of Maharashtra Government. 

The applicant sought the advance ruling on the issue whether service of renting of residential building to the Social Justice and Special Assistance Department of Maharashtra Government for running a hostel for the backward class girls is taxable or exempt?

The AAR ruled that  renting out of immovable property, provided by the Appellant to the State Government, will definitely be construed as activity relation of the function entrusted to a Panchayat under Article 243G of the Constitution, or in relation to the function entrusted to a Municipality under article 243W of the Constitution, and thereby, are rightly eligible for exemption from GST in terms of the exemptionentry at Sl. No. 3 of the Notification No. 12/2017-C.T. (Rate) dated 28.06.2017.

Ruling Details

Applicant Name: M/s. RAVINDRA NAVNATH SATPUTE (DEWOO ENGINEERS)

Date: 27/03/2025

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