GST Levy on House keeping Services to Govt. Educational Institutions: Delhi HC directs for Appellate Remedy, Says  Authority Must Decide  Pre-deposit [Read Order]

The Delhi High Court directed the petitioner to pursue the appellate remedy against the Goods and Service Tax(GST) demand on housekeeping services provided to government educational institutions, stating the authority must decide on the pre-deposit.

Shivalik HouseKeeping Services,petitioner-assessee,approached the Court under Article 226 of the Constitution, seeking exemption from the mandatory 10% pre-deposit for filing an appeal under Section 107 of the CGST Act, 2017.

The petitioner planned to appeal against the Order-in-Original dated 20th January 2025, which demanded ₹21.80 crore in GST. It had provided housekeeping services to Government Educational Institutions and argued that these services were exempt under relevant GST notifications. The petitioner also stated that GST was not collected from the institutions due to this belief. The Court issued notice, which was accepted by the department’s counsel.

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The issue in the case was whether the housekeeping services provided by the petitioner to certain entities were exempt from GST, based on the definitions of ‘pure services’ and ‘government entity’ in Notification No. 12/2017.

The Court said the question of whether the petitioner’s clients were exempt needed to be decided by the AA after reviewing the facts. Since the petitioner had not collected GST and the exemption issue required detailed examination, the Court allowed the petitioner to file an appeal under Section 107 of the CGST Act.

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The division bench of Justice Prathiba M.Singh and Justice Rajneesh Kumar Gupta  permitted the petitioner to avail the appellate remedy by 10th July 2025, along with an application for determining the pre-deposit, which was to be considered in accordance with law.

Accordingly, the writ petition was disposed of.

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