No GST on services of leasing of immovable properties and water areas to MMRDA: AAR

Case Details: Authority for Advance Rulings, Maharashtra Mumbai Port Trust, In re - [2022] 134 taxmann.com 21 (AAR - MAHARASHTRA)

Judiciary and Counsel Details

• • Rajiv Magoo and T.R. Ramnani, Member

Facts of the Case

The applicant was established under the Bombay Port Trust Act, 1879 and engaged in leasing of immovable properties and water areas within its territory. It entered into MoU with MMRDA, a government entity, for transferring of certain land and water areas by way of long-term lease for construction of Mumbai Trans Harbour Link (MTHL). It filed an application for advance ruling to determine the taxability of services provided to MMRDA.

AAR Held

The Authority for Advance Ruling observed that the supply of leasing of immovable properties and water areas within its territory by the applicant to MMRDA is nothing but supply of services. The MMRDA is established by State Government and applicant would be supplying pure services in relation to any function entrusted to a Panchayat/Municipality under article 243G/243W of Constitution. Therefore, as per provisions of Sl. No. 3 of Notification No. 12/2017-Central Tax (Rate), dated 28-6-2017, services supplied by applicant would be exempted from GST.

List of Cases Referred to

• • CIDCO Ltd., In re [2019] 26 GSTL 394 (AAR – Mah.) (para 2).