Golden Gate Projects And Ventures LLP vs. State Of Karnataka

Facts

The petitioner, Golden Gate Projects and Ventures LLP, challenged a demand notice dated November 29, 2019, issued by the Joint Director, Town Planning (North), Bruhat Bangalore Mahanagara Palike (BBMP). The demand notice included a sum of Rs. 18,43,932/- and GST of Rs. 3,31,908/- at 18% on ground rent and scrutiny fee for the issuance of an occupancy certificate. The petitioner sought to quash this demand notice, specifically the portion related to the GST component. The present writ petition raises issues identical to those in W.P.No.4601/2020 and connected cases.

Held

The Court noted that the present writ petition raises identical issues to those previously decided in W.P.No.4601/2020 and connected cases. The Court had disposed of those petitions by an order dated August 4, 2021. Consequently, following the precedent set in the earlier batch of cases, this writ petition was also disposed of in the same manner. The specific findings and reasoning from the August 4, 2021 order, which would have addressed the legality of the GST demand on ground rent and scrutiny fees, are not detailed in this judgment. However, the operative direction implies that the outcome for this petition mirrors the outcome of the earlier ones.

Key Issues

1. Whether the demand for Goods and Services Tax (GST) on ground rent and scrutiny fee for the issuance of an occupancy certificate by the Bruhat Bangalore Mahanagara Palike (BBMP) is legally sustainable. The petitioner contends that the demand for GST on these charges is arbitrary and without legal basis. They argue that the BBMP is not authorized to levy GST on such statutory fees. The petitioner likely relies on the principle that only goods and services specified under the GST Act are taxable and that statutory fees for administrative purposes may not fall within the ambit of GST. The revenue/State (represented by BBMP) would argue that these charges represent a service provided by the BBMP, and therefore, GST is applicable as per the provisions of the GST Act and relevant notifications. They would likely assert that the issuance of an occupancy certificate involves a service for which consideration is charged, making it a taxable supply.