2022 (10) TMI 778 - AAR - GST

Maintainability of Advance Ruling application - non-payment of requisite fee for filling Advance Ruling application - Manpower supply services - Punjab Water Supply or Sewerage Board - body of Local Authority/ Municipal Committee or not? - entry no. 6 of Twelfth Schedule of Article 243 W of Constitution of India - Serial No. 3 of Notification no. 12/2017 dated 28.06.2017 - levy of GST or not under CGST/SGST/IGST - composite supply or not - HELD THAT - The requisite fee for filling Advance Ruling application is Rs. 10,000/- (Rs. 5,000 each for CGST and SGST), but the applicant has deposited only Rs. 5,000/- under SGST Act. Despite giving multiple opportunities, the applicant has not deposited the required pending fee of Rs. 5,000 under GCST Act. Thus, the application is hereby filed without any Advance ruling.

Summary

Issues:
1. Eligibility of the application for advance ruling.
2. Whether Punjab Water Supply or Sewerage Board is a body of Local Authority/Municipal Committee.
3. Whether manpower supply for Sewerage cleanliness is covered under specific entries.
4. Tax liability on manpower supply to Sewerage Board for Sewerage Cleanliness under CGST/SGST/IGST.

Eligibility of the application for advance ruling:
The applicant, engaged in supplying manpower to Punjab Water & Sewerage Board, sought an advance ruling on various questions related to the applicability of notifications under the CGST/PGST Act. The Authority found the queries fell under the ambit of Section 97(2) of the Acts, making the application eligible for a ruling.

Punjab Water Supply or Sewerage Board classification:
The jurisdictional authority stated that the Board, functioning under the administrative control of the Local Government, is a government authority. Referring to specific entries in the Constitution of India, they opined that sewerage cleaning work falls under sanitation conservancy work, making it eligible for nil-rated taxation under specific notifications.

Manpower supply for Sewerage cleanliness:
The applicant had submitted relevant notifications and constitutional provisions. The jurisdictional authority highlighted that pure services like manpower supply to the Board could be considered falling under the nil-rated category as per Notification No. 12/2017 Central Tax (Rate) dated 28.06.2017.

Tax liability on manpower supply:
Despite multiple notices to deposit the requisite fee for CGST, the applicant failed to comply, resulting in the application being filed without an advance ruling. The Authority emphasized the importance of fulfilling fee requirements for a valid application.

This judgment underscores the significance of compliance with fee regulations for advance ruling applications and the interpretation of specific provisions related to taxation on services provided to government authorities. It clarifies the eligibility criteria for seeking advance rulings and the considerations for determining tax liabilities on services like manpower supply for sewerage cleanliness.