GST Payable on Hotel Rent to Govt. for Security Forces | HC

Case Details: Iqbal Mubarik v.U.T of Jammu & Kashmir - [2025] 176 taxmann.com 314 (Jammu & Kashmir and Ladakh)

Judiciary and Counsel Details

• Sanjeev Kumar & Sanjay Parihar, JJ.
• Manzoor A. Dar & Muzamil Jabeen, Advs. for the Petitioner.
• Ms Maha Majeed, Assisting Counsel & Mohsin Qadri, Sr. AAG for the Respondent.

Facts of the Case

The petitioner owned a hotel in Srinagar. The hotel was rented out to the Police Department of the Government of Jammu and Kashmir for accommodating Central Security Forces engaged in maintaining law and order in the valley. The rent was fixed by the Government in the year 2013 at the rate of Rs. 300 per day per room. Aggrieved by the inaction of the Government, the hotelier filed a writ petition before the High Court of Jammu & Kashmir. The petitioner did not dispute his liability to pay GST on the rental income derived by him by hiring his hotel rooms to the Government. Still, he claimed that the GST element, which is payable by him, must be reimbursed/paid in addition to the fixed rent by the Government. The matter reached the High Court of Jammu & Kashmir.

High Court Held

The High Court held that the rental income received by the petitioner was now taxable at 12%. Thus, it was the liability of the Department of Home to reimburse such amount. The invoices of rent would thus have the rental fixed by the Government on the recommendation of the Rent Assessment Committee plus the GST as applicable.