Hotel Shamas-Ul-Haq Th.Its Prop vs. Union Territory Of J And K (Home) And Others

Facts

The petitioner, Hotel Shamas-Ul-Haq, filed a writ petition before the High Court of Jammu & Kashmir and Ladakh at Srinagar. The petition concerned the Goods and Services Tax (GST) liability on rental income received by the hotel from the Department of Home, Government of Jammu and Kashmir, for hotel accommodation hired by the department. The respondent, Union Territory of J and K (Home) and others, through the Senior Additional Advocate General, submitted that the issue was no longer res integra and was covered by a previous judgment in WP(C) No. 963/2023, titled Haji Khazir Mohd. Dar & Ors. v. U.T. of J&K & Ors., pronounced on 07.07.2025. The present petition was disposed of on the same terms as the cited judgment.

Held

The Court held that the petitioner is liable to pay GST on the rental income received from the Department of Home for the hotel accommodation hired by the department. Consequently, the petitioner is legally bound to seek appropriate registration under the CGST/Jammu and Kashmir GST Act and deposit the service tax at the prescribed rate with the GST Authorities. The Court further held that the Department of Home, Government of Jammu and Kashmir, shall be liable to pay the prescribed rate of GST in addition to the rent payable to the petitioners per room per day. The Court also advised the Department of Home to constitute a proper Rent Assessment Committee to revise the rental rates for the hotel accommodation it has been using. The operative directions were that the Department of Home shall commence paying the GST in addition to the rental from August 2025, and the petitioners must immediately seek registration to collect and deposit the GST. The registration process was to be completed by July 31, 2025. The petition was disposed of on these terms.

Key Issues

1. Whether the petitioner is liable to pay GST on the rental income received from the Department of Home for hotel accommodation hired by the department, and consequently, whether the petitioner is legally bound to seek appropriate registration under the CGST/Jammu and Kashmir GST Act and deposit the service tax at the prescribed rate. (Framed as a question of law and mixed law and fact, turning on the applicability of GST provisions to rental income from government departments). 2. Whether the Department of Home is liable to pay the prescribed rate of GST in addition to the rent payable to the petitioner. (Framed as a question of law and mixed law and fact, concerning the responsibility for GST payment in such contractual arrangements). Petitioner's Arguments: The judgment does not explicitly record arguments made by the petitioner. However, the petition itself implies a challenge or query regarding their GST liability and the process of payment. Revenue's Arguments: The respondent, through the Senior Additional Advocate General, fairly submitted that the issue was covered by a previous judgment (WP(C) No. 963/2023) and was no longer res integra. They did not present any independent arguments but relied on the precedent.