The Authority for Advance Rulings (AAR), Uttarakhand has held that exemption of GST can avail for the consideration received in the form of a grant for the service undertaken for the government authorities.
Garhwal Mandal Vikas Nigam Limited (GMVN Ltd.) is an undertaking of the Government of Uttarakhand which was to promote a steady and sustained growth phase of the travel and tourism sector in Uttarakhand by making the destinations more accessible, and more attractive with many facilities and amenities for the tourists in the Uttarakhand State.
The applicant undertakes activities of restoration and repair works of wayside amenities, tourist rest houses, tourist bus stands and development. The applicant received Grant from the Directorate of Culture; Government of Uttarakhand for the construction of “Shaheed Dwaf at Banjarawala, Dehradun and a Grant from the Department of Social Justice & Empowerment, Government of India for the construction of “Creation of barrier-free environment for PWDs and tourist rest houses in various district of Uttarakhand State.
It was observed that the applicant has received payment for the execution of a specific work and the money transferred by the Government into the accounts of the applicant in the form of a grant is a “consideration” under the provision of the CGST Act, 2017.
Shri Anurag Mishra and Shri Rameshvar Meena, Authority members have ruled that exemption by the Notification No. 12/2017-CT (Rate) dated 28.06.2017 is available, only if the consideration is in the form of Grants.
Sh. Amrit Aswal, Chartered Accountant appeared for the applicant and Mrs Preeti Manral, Deputy Commissioner appeared for the respondent.
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