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2024 (1) TMI 121 - AAR - GSTState Government or not - Jaipur Development Authority - entry 3A of Notification No. - 12/2017 - CT (Rate) dated 28.06.2017 - HELD THAT - JDA is not a Municipality as municipal corporation already exists in Jaipur City thus JDA cannot, therefore, be entrusted with the control or management of a municipal fund. The question put before Authority is Whether the Jaipur Development Authority can be considered as State Government in regards of entry 3A of Notification No. - 12/2017 - CT (Rate) dated 28.06.2017, however however it is out of preview of authority - it is found from records that JDA is constituted by State Government under Jaipur Development Authority Act 1982 (Act No. 25 of 1982) and fully controlled by state government, Thus its amply clear for us that JDA is Governmental Authority under GST Act. Thus, JDA is not State Government in reference of entry 3A of Notification No. -12/2017 - CT (Rate) dated 28.06.2017.
Issues Involved:
1. Whether the Jaipur Development Authority can be considered as State Government in regards of entry 3A of Notification No. - 12/2017 - CT (Rate) dated 28.06.2017. Summary: Issue 1: Applicability of Notification No. 12/2017 - CT (Rate) dated 28.06.2017 Applicant's Submission: The applicant, M/S Ramesh Kumar Jorasia (Muskan Construction), contends that the Jaipur Development Authority (JDA) should be considered as a State Government entity under entry 3A of Notification No. 12/2017 - CT (Rate) dated 28.06.2017. The applicant asserts that JDA, established under the Jaipur Development Authority Act, 1982, is a governmental authority performing functions entrusted by the Government of Rajasthan. Authority's Findings and Analysis: 1. Definition of "Government": The Authority examined the definition of "Government" u/s 2(53) of the CGST Act, 2017, and the RGST Act, 2017, which includes both the Central Government and any State Government. The definition extends to the President and officers subordinate to him for the Central Government, and the Governor and officers subordinate to him for the State Government. 2. Local Authority and Governmental Authority: The Authority noted that JDA is a body corporate with perpetual succession, established under the Jaipur Development Authority Act, 1982, and is deemed a local authority within the meaning of the Rajasthan General Clauses Act, 1955. However, JDA does not qualify as a Municipality since a municipal corporation already exists in Jaipur City. 3. Governmental Authority Definition: As per clause (zf) of Notification No. 12/2017 dated 28.06.2017, a "Governmental Authority" is an authority set up by an Act of Parliament or State Legislature or established by any Government with 90% or more participation by way of equity or control, to carry out functions entrusted to a Municipality under Article 243W of the Constitution or to a Panchayat under Article 243G of the Constitution. 4. Notification No. 16/2021 - Central Tax (Rate): The Authority referred to this notification, which amended Notification No. 12/2017, removing the words "or a Governmental authority or a Government Entity" from the description of services under entry 3A. Conclusion: The Authority concluded that JDA is not a "State Government" in reference to entry 3A of Notification No. 12/2017 - CT (Rate) dated 28.06.2017. Consequently, the services provided by the applicant to JDA do not qualify for the Nil rate of GST under the said notification. Ruling: Q.1: Whether the Jaipur Development Authority can be considered as State Government in regards of entry 3A of Notification No. - 12/2017 - CT (Rate) dated 28.06.2017? Ans. 1: No, Jaipur Development Authority is not covered under the definition of "State Government" in reference to entry 3A of Notification No. 12/2017 - CT (Rate) dated 28.06.2017. This ruling is valid subject to the provisions u/s 103 until and unless declared void u/s 104(1) of the GST Act.
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