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2018 (11) TMI 400 - AAR - GSTGovernment authority or not - applicant undertakes transport studies, which are undertaken by third party vendors providing Consultancy Services on behalf of the applicant - whether functions of municipality or not - scope of Urban planning - N/N. 12/2017 of Central Tax (Rate), dated 28th June 2017, read with Notification No. 32/2017 of Central Tax (Rate), dated 13th October 2017. Government authority - Held that - AMRCL is a SPV which is set up vide Government of Andhra Pradesh G.O. Ms. 141 of MA &UD. The applicant has also submitted that it is 100% owned by state of A.P.; that it is answerable to Government of Andhra Pradesh; that its Chairman is the Principal Secretary. The Government of Andhra Pradesh, issued G.O. Rt.No 599, MA&UD(H2) Department, dated 14.09.2015, in which, the Government of Andhra Pradesh has decided that the special purpose vehicle for Vijayawada Metro Rail Project, hence forth be called as AMARAVATHI METRO RAIL CORPORATION LIMITED (AMRC) . Based on above facts, it is evident that the applicant is a Government authority as per the Notification No. 12/2017 - Central Tax dated 28th June 2017. Whether the consultancy services for preparation of transport studies comes within the purview of the functions of Municipality under article 243W r/w Twelfth Schedule to the Constitution of India? - Held that - Urban Planning is a function entrusted to Municipality under Article 243 W of the Constitution. The applicant has invited our attention to Ministry of Urban Development, Government of India in K-14011/07/2007/Metro/UT dt.29-08-2007, addressed to all the Chief Secretaries of the States and Union Territories, informing the decision that the urban transport and urban planning must go together and that urban transport is an integral part of urban development, which will help in ensuring that urban transport remains an integral part of urban planning at all the times and cities are planned in a wholistic manner - Urban Transportation also is a part of Urban Planning. All the activity is in the nature of urban transportation and urban planning and the same is covered under the purview of the functions of Municipality under article 243W read with Twelfth Schedule to the constitution of India, and the same fall within the purview of the aforesaid exemption notification 12/2017-Central Tax (Rate), dated 28th June 2017. Ruling - The applicant / AMRCL is a Government Authority as per Notification No. 12/2017-CT (Rate, dated 28.06.2017. The consultancy services for preparation of transport studies such as comprehensive mobility plan, transit oriented development plan, NMT plan and consultancy services of transaction advisors/preparation of DPRs comes within the purview of the functions of Municipality under article 243 read with Twelfth Schedule to the constitution of India, and accordingly, falls within the purview of the aforesaid exemption notification.
Issues involved:
1. Whether the applicant is considered a Government authority as per specific notifications. 2. Whether the consultancy services provided by the applicant fall within the functions of a Municipality for exemption. Issue 1: Applicant's status as a Government authority The applicant, a Special Purpose Vehicle (SPV) set up by the Government of Andhra Pradesh, was deemed a Government authority based on its establishment, ownership, and accountability to the state government. The applicant's formation under a government order and its complete ownership by the state government solidified its classification as a Government authority as per the relevant notification. Issue 2: Consultancy services and exemption The consultancy services offered by the applicant for transport studies, including mobility plans and project reports, were assessed against the functions of a Municipality under Article 243W and the Twelfth Schedule of the Indian Constitution. The authority determined that urban planning, including urban transportation, is a responsibility of Municipalities. The services provided by the applicant, such as transit plans and public transport projects, were found to align with the functions listed in the Twelfth Schedule. Therefore, the consultancy services were considered within the purview of a Municipality's functions, making them eligible for exemption under the specified notification. In conclusion, the Advance Ruling Authority of Andhra Pradesh ruled that the applicant is recognized as a Government authority as per the relevant notification. Additionally, the consultancy services offered by the applicant for transport studies were deemed to fall within the functions of a Municipality, making them eligible for exemption under the law. The ruling provided clarity on the applicant's status and the scope of services covered under the exemption, ensuring compliance with the applicable regulations.
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