2018 (6) TMI 1126 - AAR - GST

Levy of GST - procurement of services or material from Govt./Govt. Authority - whether the services or material procured by ITDA from Govt./Govt. Authority is exempt from GST? - Held that - The applicant is covered under local authority which is receiving services from IIT, Mumbai which is covered as Central Government. Whether the services received by the applicant from IIT. Mumbai is liable to GST or not? - Held that - Serial no. B of Part 3 of GST Tariff-Services Chapter 99 provides the list of nil rated/fully exempted services. On going through the said list, it is found that Government/Authority providing services to other Government/Authority is exempted from GST. Ruling - The services received by the applicant from IIT, Mumbai is exempted from GST. As regard to the supply of goods by one Govt/authority to other Govt/authority is concerned, there is no exemption from GST in this regard.

Summary

Issues:
1. Whether services or material procured by ITDA from Govt./Govt. Authority are exempt from GST.

Analysis:
The application sought an advance ruling on the leviability of GST on services or material procured by ITDA from the Government or Government Authority. The Joint Commissioner initially raised concerns about the question falling under Section 97(2) of the UKGST Act, but it was clarified that as per Section 97(1) of the CGST/SGST Act, an applicant can seek an advance ruling on the mentioned question. The applicant, being registered under GST, falls under the definition of an "applicant" and is eligible to seek an advance ruling as per the relevant sections of the Act. The application was admitted based on Section 97(2)(e) of the CGST/SGST Act, which allows rulings on the determination of tax liability on goods or services procured. Therefore, the application was deemed admissible.

The applicant was granted a personal hearing to present their case, where they reiterated their submission from the application. The ruling focused on the leviability of GST on the procurement of services or material from the Government or Government Authority. The ITDA, being under the administrative control of the Information Technology Department of the Uttarakhand Government, was considered a local authority as per the definitions provided in the Uttarakhand Goods and Services Tax Act. Additionally, an MOU with IIT Bombay was discussed, establishing IIT Bombay as falling under the definition of the Government as per the Central Goods and Services Tax Act.

The ruling determined that services received by the applicant from IIT Bombay were exempt from GST based on the GST Tariff-Services, which lists nil rated/fully exempted services. However, there was no exemption from GST for the supply of goods by one Government/Authority to another. Therefore, services received by the applicant from IIT Bombay were deemed exempt from GST, while the supply of goods between Government/Authorities was not exempt.

This detailed analysis of the judgment provides a comprehensive overview of the issues involved and the specific rulings made by the Authority for Advance Rulings, Uttarakhand.