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2024 (8) TMI 1376 - AAR - GSTRate of tax - work allotted by Maharashtra Jeevan Pradhikaran (MJP) as a part of Jal Jeevan Mission which is a mission of Government of India allotted, performed invoiced before 01.01.2022 - work allotted by Maharashtra Jeevan Pradhikaran (MJP) as a part of Jal Jeevan Mission which is a mission of Government of India which is performed invoiced after 01.01.2022 but which is allotted before 01.01.2022 - work allotted by Maharashtra Jeevan Pradhikaran (MJP) as a part of Jal Jeevan Mission which is a mission of Government of India allotted, performed invoiced after 01.01.2022 - service receiver within the meaning of Sec. 2 (93) of CGST/MGST Act in respect of amounts received as grants by MJP which are paid to the applicant on services provided before 01.01.2022 - service receiver within the meaning of Sec. 2 (93) of CGST/MGST Act in respect of amounts received as grants by MJP which are paid to the applicant on services provided after 01.01.2022 - appointment of MJP as an agency to implement water supply schemes amounts to delegation of sovereign function enumerated in Sch. XI XII within the framework of Constitution of India so as to hold that MJP has performed the function entrusted under Article 243G 243W of the Constitution of India. What is the rate of tax in respect of work allotted by Maharashtra Jeevan Pradhikaran ( MJP ) as a part of Jal Jeevan Mission which is a mission of Government of India allotted, performed invoiced before 01.01.2022? - HELD THAT - Nil, being exempted under Entry at Sr No. 3 of the Notification No. 12/2017-Central tax (Rate)- dated 28th June 2017. What is the rate of tax in respect of work allotted by Maharashtra Jeevan Pradhikaran (MJP) as a part of Jal Jeevan Mission which is a mission of Government of India which is performed invoiced after 01.01.2022 but which is allotted before 01.01.2022? - HELD THAT - The services supplied by the applicant are in nature of Technical Consultancy for Project Development and Management support services, and hence classifiable under SAC code-998399- Other professional, technical and business services n.e.c., under the head Business and Production Services covered at Sr No 21 (ii) in the Notification No 11/2017-Central Tax (Rate)-dated 28th June 2017 and are taxable at rate of 18% (9% CGST SGST each), wherever exemption is not applicable. Whether Services provided to MJP for the Constitutional function of State Central Governments, for which these Governments are liable to pay the consideration of contract, and as payment is made through PFMS, supplies are in fact made to the Central State Government? - HELD THAT - The argument of the applicant that services provided to MJP for the Constitutional function of State Central Governments, for which these Governments are liable to pay the consideration of contract, and as payment is made through PFMS, supplies are in fact made to the Central State Government. Hence, even after deletion of the word Government Authorities with effect from 01-01-2022, from the notification entry number 3, the services provided by the applicant shall be eligible for benefit of exemption services provided by it to MJP, is not based on evidence, far-fetched and based on conjectures and surmises and very specious argument and hence rejected. Whether the MJP is Governmental Authority as required in entry number 3 defined in definition 2 (zf) of the exemption notification? - HELD THAT - Supply of services where Time of supply is on or before 31-12-2021. After Considering all the aforesaid facts, provisions of Law, issues and decision therein, we have no hesitation in holding the Technical Consultancy for Project Development and Management support services , provided by the applicant to the MJP for its Water supply schemes where time of supply is on or before 31-122021. are covered by the exemption entry at Sr No. 3 of the exemption notification No 12/2017-Central Tax (Rate), dated 28th June 2017. The extent of agency is limited to carrying out the means or a mode of doing an act not to decide the very act itself. Actions of MJP in fixing the technical qualifications necessary for being eligible in the tender process, to enter into an agreement with applicant confirming his empanelment eligibility, to enter into contractual negotiations for fixing consideration are much too broad decisive to be narrowly circumscribed by the trappings of an agency - It is trite law that the words of a notification have to be strictly construed any ambiguity has to be construed in favour of the revenue. Since, the words government authority or entity have been removed, tax is undisputedly attracted. There are no hesitation in holding the Technical Consultancy for Project Development and Management support services , provided by the applicant to the MJP for its Water supply schemes where time of supply is on or after 01-01-2022, are not covered by the entry at Sr No. 3 of the Notification No 12/2017-Central Tax (Rate), dated 28th June 2017. As the words or a Government Authority or a Government Entity , are omitted from the aforesaid Entry at Sr, No, 3.
Issues Involved:
1. Rate of tax for work allotted, performed, and invoiced before 01.01.2022. 2. Rate of tax for work allotted before 01.01.2022 but performed and invoiced after 01.01.2022. 3. Rate of tax for work allotted, performed, and invoiced after 01.01.2022. 4. Identification of the service receiver under Sec. 2 (93) of CGST/MGST Act for services provided before 01.01.2022. 5. Identification of the service receiver under Sec. 2 (93) of CGST/MGST Act for services provided after 01.01.2022. 6. Whether MJP's appointment as an agency to implement water supply schemes amounts to delegation of sovereign functions under the Constitution of India. Detailed Analysis: 1. Rate of Tax for Work Allotted, Performed, and Invoiced Before 01.01.2022: - Applicant's Submission: The services provided are pure services exempt under Notification No. 12/2017-Central Tax (Rate) as they are provided to a government authority. - Authority's Finding: The services provided to MJP before 01.01.2022 are exempt from tax under Entry No. 3 of Notification No. 12/2017-Central Tax (Rate). - Decision: The rate of tax is Nil for services provided before 01.01.2022. 2. Rate of Tax for Work Allotted Before 01.01.2022 but Performed and Invoiced After 01.01.2022: - Applicant's Submission: The services should remain exempt as they are provided to a government authority. - Authority's Finding: After 01.01.2022, the exemption is not applicable due to the deletion of the words "government authority or entity" from Notification No. 12/2017-Central Tax (Rate). - Decision: The rate of tax is 18% (9% CGST and 9% SGST) for services performed and invoiced after 01.01.2022. 3. Rate of Tax for Work Allotted, Performed, and Invoiced After 01.01.2022: - Applicant's Submission: The services should be exempt as they are for a government mission. - Authority's Finding: The exemption is not applicable due to the deletion of the words "government authority or entity" from Notification No. 12/2017-Central Tax (Rate). - Decision: The rate of tax is 18% (9% CGST and 9% SGST) for services performed and invoiced after 01.01.2022. 4. Identification of the Service Receiver Under Sec. 2 (93) of CGST/MGST Act for Services Provided Before 01.01.2022: - Applicant's Submission: The Central and State Governments are the service receivers as they provide the grants. - Authority's Finding: MJP is the service receiver as per the contractual agreement and GST provisions. - Decision: The service receiver is the Maharashtra Jeevan Authority (MJP). 5. Identification of the Service Receiver Under Sec. 2 (93) of CGST/MGST Act for Services Provided After 01.01.2022: - Applicant's Submission: The Central and State Governments are the service receivers as they provide the grants. - Authority's Finding: MJP is the service receiver as per the contractual agreement and GST provisions. - Decision: The service receiver is the Maharashtra Jeevan Authority (MJP). 6. Whether MJP's Appointment as an Agency to Implement Water Supply Schemes Amounts to Delegation of Sovereign Functions: - Applicant's Submission: MJP acts as an agent of the government, performing sovereign functions. - Authority's Finding: The issue is outside the purview of Section 97(2) of the GST Act. - Decision: Not answered, as it is beyond the scope of the authority's jurisdiction. Final Orders: 1. Question 1: Rate of tax is Nil for work allotted, performed, and invoiced before 01.01.2022. 2. Question 2: Rate of tax is 18% for work performed and invoiced after 01.01.2022 but allotted before 01.01.2022. 3. Question 3: Rate of tax is 18% for work allotted, performed, and invoiced after 01.01.2022. 4. Question 4: The service receiver is the Maharashtra Jeevan Authority (MJP) for services provided before 01.01.2022. 5. Question 5: The service receiver is the Maharashtra Jeevan Authority (MJP) for services provided after 01.01.2022. 6. Question 6: Not answered, as it is outside the purview of Section 97(2) of the GST Act.
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