GST Applicable on services provided to State Government of Maharashtra for residential accommodation of underprivileged girls

GST Applicable on services provided to State Government of Maharashtra for residential accommodation of underprivileged girls Owner has immovable property situated at Nashik, which is given on rent to Public Welfare Department (PWD), Maharashtra Government. In the instant case the rental income from the properties, per annum, does not exceed the GST registration threshold (i.e. Rs 20 lacs). However, the total rental received exceeds the threshold provided under section 22(1) of the GST Act. The Applicant is un-registered under Goods and Services Tax Act, 2017. However, Sahayak Ayukt Samaj Kalyan Vibhag is deducting TDS under Section 51 of the CGST Act, 2017. This TDS is resulting into cost for the Applicant as Applicant is un-registered.

Following are the Questions of Applicant and Advance Ruling

Question 1:-In the instant case, whether the services provided by us to Samaj Kalyan Department, State Government of Maharashtra (Social Welfare Department) for residential accommodation of underprivileged girls is exempt from GST? It is not possible for us to find whether the said services are supplied by the applicant by way of any activity in relation to any function entrusted to a Panchayat under article 243G of the Constitution or in relation to any function entrusted to a Municipality under article 243W of the Constitution. Hence, in view of the above, the renting of immovable property services by the applicant is not liable for exemption under the provisions of Entry No. (3) Of Notification No. 12/2017-CT(R) dated 28.06.2017. Answer: Answered in the negative. Question 2:- Whether TDS provisions will be applicable in case where the supply of services is exempt? Answer: We also would like to draw attention to the fact that 97 (b) of CGST Act, 2017 covers the question on which advance ruling can be sought i.e. "(b) applicability of a notification issued under the provisions of this Act". Further, the issue has been addressed in Dolphin Techno Waste Management Pvt. Ltd. [2020 (35) G.S.T.L. 413 (A.A.R. -GST -W.B.)], Mahalakshmi Mahila Sangha [2020 (37) G.S.T.L. 385 (A.A.R. -GST -Kar.)], etc. Answer:- TDS provisions will be applicable in the subject case. Question 3:-As the Applicant is not registered under GST and provide services to Social Welfare Department {Samaj Kalyan Department), a Department of State Government, then whether TDS notification issued under section 51 would be applicable for deduction of TDS? Answer:- Answered in the affirmative. Question 4:-In case TDS is deducted, whether we would be entitled for a refund of the same? Answer:- Not answered in view of the discussions made above.