2019 (1) TMI 419 - AAR - GST

Applicability of provisions of S.No.3 & 3A of Table of Notification No. 12/2017 dtd.28.06.2017 - distribution and supply of electricity in western Madhya Pradesh - Government Entity - composite supply - Held that - The Applicant is a Government Entity and is definitely covered by the definition of Government Entity in terms of Notification No.32/2017 - The application that the Applicant has made a specific mention of Sr. No.3A to notification no. 12/2017, which provides NIL rate of GST for composite supply of goods and services where the value of supply of goods constitute not more than 25% of the value of composite supply provided to the Central government or state government etc. by way of any activity in relation to any function entrusted to a Panchayat under article 243G of the Constitution - However, we do not find any specific mention of services in this context in the application. It is pertinent to mention here that applicability of Sr.No.3A will be supply specific and not supplier or recipient specific. Thus it is not possible to give nay ruling about applicability of Sr.No.3A to Applicant, particularly in absence of any specific mention of supply of goods or service or both. The applicability of provisions of Sr.no.3 and 3A shall depend upon the nature of supply and no carte blanche ruling can be given to the Applicant without mention of specific service. Ruling - In view of insufficient information provided in the Application, and the nature of query being broadly generic, no ruling can be given on the Application.

Summary

Issues:
Applicability of provisions of S.No.3 & 3A of Table of Notification No. 12/2017 dtd.28.06.2017 on services supplied to the company.

Analysis:

1. Brief Facts of the Case:
The applicant, a Public Sector Undertaking fully owned by the Government of Madhya Pradesh, is engaged in the distribution and supply of electricity in western Madhya Pradesh. The applicant is considered a 'Government Entity' as per the definition provided in relevant notifications. The company is entrusted with functions related to the distribution of electricity and rural electrification.

2. Question Raised Before the Authority:
The question raised pertains to the applicability of provisions of S.No.3 & 3A of Notification No. 12/2017 on services supplied to the company.

3. Discussion and Findings:
The Authority notes that the specific question posed by the applicant is generic and lacks clarity. However, it is presumed that the query relates to the applicability of certain provisions to services provided to Panchayats for Rural Electrification. The Authority confirms that the applicant qualifies as a Government Entity and is engaged in functions entrusted by the Constitution related to Rural Electrification. Notably, activities of distribution and retail supply of electricity by the applicant are exempted from GST.

4. Ruling:
Due to insufficient information and the generic nature of the query, the Authority concludes that no ruling can be provided on the application at hand. The ruling is subject to the provisions of the GST Act until declared void under the relevant sections.

This judgment highlights the importance of articulating specific and clear questions before the Authority for Advance Ruling to enable a precise determination. The analysis emphasizes the need for detailed information regarding the nature of services provided to ascertain the applicability of specific provisions of the GST Act. The ruling underscores the requirement for clarity and specificity in seeking advance rulings to facilitate accurate interpretations of tax laws.