2018 (9) TMI 1334 - AAR - GST

Classification of services - Works Contract - Pure services - Services provided to Local Authority or Governmental Authority or Government Entity - PMC shall review detailed designs prepared and submitted by the Contractor for execution purposes keeping in view the applicable technology, applicable regulations and guidelines and the Employer s Requirements. - Applicability of a notification issued under the provisions of this Act - determination of the liability to pay tax on any goods or services or both. Whether service provided by ws PDCOR Ltd is correctly classified under SAC Code 9983? - Held that - The services provided by M/S PDCOR Ltd is classifiable under SAC Code 9983 Whether Jaipur Development Authority falls under the definition of Local Authority or Governmental Authority or Government Entity? - Held that - Jaipur Development Authority (JDA) is a Governmental Authority. Whether the PMC services to JDA for Rejuvenation of Amanishah Nallah (Dravyavati River), Jaipur will attract GST or will be exempt from GST as per Serial No. 3 of CGST Notification No. 12/2017 dated 28th of June, 2017? - Held that - From the scope of services provided by the applicant to the JDA it is clear that these services are pure services and hence exempt under S.No.3 for Notification No. 12/2017-Central Excise (Rate) dated 28th June 2017 - the Jaipur Development Authority is Governmental Authority and PMC Services provided by M/s. PDCOR to JDA in relation to Rejuvenation of Amanishah Nallah (Dravyavati River), Jaipur are found to be covered under services mentioned at Sl. No.3 of CGST under Notification 12 /2017 Central Tax (Rate) dated 28/06/2017 (Notification No. F. 12 (56) FD/Tax/2017-Pt-I-50 Dated 29/09/2017 issued by the Government of Rajasthan.). Ruling - The PMC Services provided by M/s. PDCOR Ltd. to the JDA in the Project Management Consulting Services (PMCs) for Rejuvenation of Amanishah Nallah (Dravyavati River), Jaipur are correctly classified under SAC Code 9983. Jaipur Development Authority (JDA) is a Governmental Authority. The PMC Services provided by M/S PDCOR Ltd. to JDA under the Project Management Consulting Services (PMCs) for Rejuvenation of Amanishah Nallah (Dravyavati River), Jaipur awarded to them vides their MOA dated 01.09.2017 are covered under Sl. No.3 of GST under Notification 12 /2017 Central Tax (Rate) dated 28/06/2017 (Notification No. F.12 (56) FD/Tax/2017-Pt-1-50 Dated 29/09/2017 issued by the Government of Rajasthan.) and hence exempt from GST.

Issues Involved:
1. Classification of services under SAC Code 9983.
2. Determination of whether Jaipur Development Authority (JDA) qualifies as a Local Authority, Governmental Authority, or Government Entity.
3. Applicability of GST exemption under Serial No. 3 of CGST Notification No. 12/2017.
4. Applicability of other entries or notifications under GST law to the services rendered.

Issue-wise Detailed Analysis:

1. Classification of Services under SAC Code 9983:
The applicant, M/s PDCOR Ltd., provides Project Management Consulting (PMC) services to the Jaipur Development Authority (JDA) for the "Rejuvenation of Amanishah Nallah (Dravyavati River), Jaipur." The Authority for Advance Ruling (AAR) examined the GST tariff entry related to services and concluded that the PMC services provided by M/s PDCOR Ltd. are classifiable under SAC Code 9983, which pertains to "Other professional, technical and business services."

2. Determination of JDA's Status:
The applicant contended that JDA qualifies as a Governmental Authority. The AAR reviewed the definition of "Governmental Authority" as per Notification No. 32/2017-Central Tax (Rate) and the Integrated Goods and Services Tax Act, 2017. JDA, established under the Jaipur Development Authority Act, 1982, is a statutory body created for the urban development of Jaipur. The AAR confirmed that JDA is a Governmental Authority because it was set up by an act of the State Legislature and performs functions entrusted by the Government of Rajasthan.

3. Applicability of GST Exemption under Serial No. 3 of CGST Notification No. 12/2017:
The applicant sought clarification on whether their PMC services to JDA are exempt from GST under Serial No. 3 of CGST Notification No. 12/2017, which exempts "Pure services (excluding works contract service or other composite supplies involving supply of any goods) provided to the Central Government, State Government or Union territory or local authority or a Governmental authority by way of any activity in relation to any function entrusted to a Panchayat under Article 243G of the Constitution." The AAR found that the services provided by M/s PDCOR Ltd. to JDA are pure services and are thus exempt from GST under the specified notification.

4. Applicability of Other Entries or Notifications under GST Law:
The AAR did not find the services rendered by M/s PDCOR Ltd. to be covered under any other entry of Notification No. 12/2017 or any other notifications/rules under the GST law. The services were deemed to be purely administrative and technical in nature, falling squarely under the exemption provided in Serial No. 3 of the CGST Notification No. 12/2017.

Ruling:
1. The PMC Services provided by M/s PDCOR Ltd. to JDA for the "Project Management Consulting Services (PMCs) for Rejuvenation of Amanishah Nallah (Dravyavati River), Jaipur" are correctly classified under SAC Code 9983.
2. Jaipur Development Authority (JDA) is a Governmental Authority.
3. The PMC Services provided by M/s PDCOR Ltd. to JDA under the "Project Management Consulting Services (PMCs) for Rejuvenation of Amanishah Nallah (Dravyavati River), Jaipur" are covered under Serial No. 3 of GST Notification No. 12/2017 Central Tax (Rate) dated 28/06/2017 and are hence exempt from GST.

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