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2021 (11) TMI 391 - AAR - GSTExemption under GST - pure services - Government entity or not - documentary services including picture of the testimony / documentary videos provided to corporations and various boards including KHB - documentary services including picture of the testimony / documentary videos provided to various government departments including Zilla and Taluk Panchayat - documentary videos and /or pictures of testimony through CD or other storable devices to various Government Departments and Panchayats - entry No.3 of the Notification No.12/2017-Central Tax (Rate) dated 28.06.2017. HELD THAT - The applicant has stated that they are providing services to various State/Central Government Departments, Local Authorities and various Boards and corporations. The applicant has not specified to which Boards and corporations they are providing the service of producing documentary videos. Since the applicant is providing the said services to various State/Central Government Departments, Local Authorities the first condition to claim exemption is satisfied subject to the condition that the Boards and/or Corporations to which the applicant is providing the above said services qualify to be a 'Governmental Authority' or 'Government Entity' in terms of the definitions at (zf) and (zfa) respectively of the Notification No.12/2017-Central Tax (Rate) dated 28.06.2017, as amended. The applicant is providing services by way of producing documentary videos, picture of testimony to various State Government Departments, Local Authorities, Boards and Corporations. But these services are not provided by way of any activity in relation to any function entrusted to a Panchayat under article 243G of the Constitution or in relation to any function entrusted to a Municipality under article 243W of the Constitution. Hence provision of such services is liable to tax at 18%.
Issues:
1. Admissibility of the application under Section 97(2)(e) of the CGST Act, 2017. 2. Exemption under Notification No.12/2017-Central Tax (Rate) dated 28.06.2017 for services provided by way of producing documentary videos and pictures of testimony to government entities. 3. Interpretation of whether services provided to various government departments, local authorities, and boards are exempted under GST. Issue 1: Admissibility of the application under Section 97(2)(e) of the CGST Act, 2017: The application filed for Advance Ruling by the individual engaged in providing documentary services was deemed admissible as it pertained to the determination of the liability to pay tax on goods or services under Section 97(2)(e) of the CGST Act, 2017. Issue 2: Exemption under Notification No.12/2017-Central Tax (Rate) dated 28.06.2017: The applicant sought exemption under entry No.3 of the Notification, which provides for exemption on pure services provided to government entities in relation to functions entrusted to Panchayats or Municipalities under the Constitution. The Authority analyzed the conditions for exemption under this entry, emphasizing the need to satisfy criteria related to the nature of services provided and the entities receiving the services. It was concluded that the services provided did not meet the specified conditions for exemption, making them liable to tax at 18% (9% CGST and 9% KGST). Issue 3: Interpretation of exemption for services provided to government entities: The Authority examined whether the services of producing documentary videos and pictures of testimony for various government departments, local authorities, and boards qualified for exemption under the relevant Notification. It was determined that since the services were not provided in relation to functions entrusted to Panchayats or Municipalities as specified in the Constitution, they were subject to tax at the prescribed rates. In summary, the Authority for Advance Ruling, Karnataka, ruled that the documentary services, including pictures of testimony and videos provided to government entities, were not exempted under GST and were taxable at 9% under both the CGST Act and the SGST Act. The decision was based on a detailed analysis of the provisions of the relevant Notification and the nature of services provided by the applicant to various government departments, local authorities, and boards.
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