The Himachal Pradesh Authority of Advance Ruling (AAR) held that no GST applicable on the amount credited to H.P. Tourism Development Board by Govt. of H.P., as grants in aid or financial assistance.
The applicant, M/s HP Tourism Development Board has been constituted under section 4 of The Himachal Pradesh Tourism Development Board & Registration Act, 2002. The main objective of the board is to promote and regulate the Tourism Activities in the State of Himachal Pradesh.
The applicant submitted that the Government of Himachal Pradesh, Department of Tourism agreed to credit the amounts to Tourism Development Board (in lieu of Grant) for smooth functioning of the board.
The amount was credited on account of receipts of amount from the sale of Publicity material/ Literature books; Fee from parking lots and public places of convenience built by the Tourism Department, Adventure sports fee including heli skiing and paragliding fee, etc; 25% to be contributed by the Tourism Development Council from their resources; donation/grants received especially for tourism promotion/development and annual license fee and success fee received to the department from BOOT/BOT basic project.
The applicant sought the advance ruling on the issue of Whether the amount credited in favor of H.P Tourism Development Board by Department of Tourism, Govt. of H.P, as grant in aid or financial assistance is taxable or not.
The AAR consisting of Abhay Gupta and Rakesh Sharma ruled that the amount credited in favor of H.P Tourism Development Board by Department of Tourism, Govt. of H.P, as grant in aid or financial assistance Central Tax (Rate) dated 13th October, 2017.
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