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Services of organization of Industries in industrial areas and establishing commercial centers is supply and liable to GST

The fact of the Case

The applicant was established under the provisions of the Gujarat Industrial Development Act, 1962 (GIDC) by the State Government of Gujarat.

The purpose of the establishment was securing orderly establishment and organization of industries in industrial areas and industrial estates in the State of Gujarat and establishing commercial centers in connection with the establishment and organization of such industries.

For these various activities carried out by applicants for plot holders in terms of the provisions of the GIDC Act, charges would be collected. It filed a request for an advance ruling to determine whether activities performed by the applicant and for which fees to be collected would be taxable or not.


The Authority for Advance Ruling noted that the applicant would fall under the category of State Government and the activities of the applicant would certainly amount to supply. Furthermore, the activities undertaken by the applicant would lead to planning for economic development.

These activities may not be a function entrusted to a municipality or cannot be covered by a municipality's list of functions. Therefore, the applicant would not be eligible for the exemption mentioned at Entry No. 4 of Notification No. 12/2017-Central Tax (Rate) dated 28-6-2017 and liable to GST.