GST applicable on wages/ interim payments received from Vikram Sara Bhai Space Center during lock down period: AAR

The present application has been filed by an organisation named M/s. Kerala State Ex-service League (Applicant) before the Kerala Authority for Advance Ruling (AAR) Goods and Services Tax (GST) Department, Tax Tower, Thiruvananthapuram. The personal hearing on the matter took place on June 20, 2025.

The applicant is an organisation registered under the Central Goods and Services Tax Act, 2017 (CGST Act) / Kerala State Goods and Services Tax Act, 2017 (KSGST Act), having GSTIN 32AAATT7429G1ZI and is located at TC 27/441-4, Vimuktha Bada Bhavan, Kunnukuzhi, Vanchiyoor, Trivandrum, Kerala 695037.

The Kerala State Ex-service League is a leading ex-servicemen welfare organisation, based in Kerala and provides manpower services to government departments, undertakings, etc., on a contract basis. It is a charitable society registered under the Travancore-Cochin Societies Registration Act, 1955, and is associated with the Indian Ex-Servicemen League. The applicant works for the welfare of veteran soldiers who have retired early from the Armed Forces. The applicant aims to help them find suitable contract-based jobs with the Central Government/State Government/undertakings for a relaxing and better retirement life.

Questions Asked Before Kerala AAR:

Seeking the present Kerala Advance Ruling (No. KER/31/2025), dated October 09, 2025, the applicant has asked the following questions:

“Question 1. Whether GST is applicable for the payments, like wages/interim payments, received from Vikram Sarabhai Space Centre (VSSC) during the lockdown period?

Question 2. Whether any GST exemption is available for the amount received as wages from VSSC during the lockdown period?”

Answers Given by Kerala AAR:

The Kerala Authority for Advance Ruling, Goods and Services Tax, gave the following answers to the questions asked by the applicant:

Answer 1: The Kerala AAR, in answer to this question, said that Yes! GST applies to the payments, like wages/interim payments, received from Vikram Sarabhai Space Centre (VSSC) during the lockdown period for manpower services provided based on the mutual agreement between the supplier, KSESL, and the service recipient, VSSC. No specific exemption will be given for the payments made to employees for such supply of services.

Answer 2: As mentioned in the answer to the first question, no GST exemption is available on the amount received as wages from VSSC during the period of lockdown, as it is part of duty.

Refer to the official advance ruling for complete information.