The Tamil Nadu Authority of Advance Ruling (AAR) ruled that Tamil Nadu Labour Welfare Board liable to make GST registration.
The applicant, Tamil Nadu Labour Welfare Board has stated that they have been constituted by the Government of Tamilnadu in the year 1972 by Tamilnadu Labour Welfare Fund Act 7972 enacted by the Legislature of the State of Tamil Nadu with a view to promote the welfare of the employees and their family/dependents with the Minister of Labour, Govt of Tamilnadu as the Chairman of the Board to administer the Tamilnadu Labour Welfare Fund and such other actions as assigned by or under the Act. The Tamil Nadu Labour Welfare Board is executing and implementing various welfare schemes for the benefit of the workers who contribute to the Labour Welfare Fund. The Board is receiving contributions from employees and matching contributions from employers and Government of Tamilnadu to the fund.
The applicant has sought the ruling on the issue in respect of applicability of GST registration to Tamil Nadu Labour Welfare Board and applicability of GST towards the rental income received by the board from Government and business entities and applicability of Reverse Charge Mechanism on for the rent on immovable properties received by the board from Government and business entities.
The coram of Kurinji Selvaan V.S. and Senthil Velavan B. ruled that Tamil Nadu Labour Welfare Board, being a person liable to pay GST, has to get registered under GST. The rental income received by the applicant from Government and business entities are taxable to GST.
“The applicant do not fall under the ‘specified class of supplier of services’ under Notification No.13/2017-C.T.(Rate) dated 28.06.2017 as amended by notification no.3/2018 – Central Tax(Rate) dated 25.01.2018 and therefore ‘Reverse charge Mechanism’ is not available to the applicant,” the AAR said.
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