2020 (7) TMI 227 - AAR - GST

Mapping Services provided to various Municipal Corporation Councils - Whether the services provided by the Applicant are covered under Clause 1 2 of Twelfth Schedule of Article 243W? - HELD THAT - From the detailed submissions made by the applicant pertaining to supply rendered by them to various Municipal Corporation Councils, it is found that their supply does not envisage supply of goods. In other words, there is rendering of pure services in the subject case. The next step would be to find out whether services rendered by them are in relation to any function entrusted to a Municipality under Article 243W of the Constitution. The Services are provided by the applicant are the relation to Urban planning including town planning and Planning of land-use and construction of buildings in as much as all the said activities help the local authorities to do Planning, Urban Planning Control the Land use by the general. The Services supplied by them are covered under Article 243W of the Constitution, as functions entrusted to Municipality. Hence the provisions as per Sl.No. 3 of the Notification No. 12/2017 - Central Tax (Rate) dated 28/06/2017 as amended applies in their case and therefore, the Subject Services being Pure Services, provided by the applicant to the various Municipal Corporations and Councils are in relation afore said functions entrusted to the said local authority and exempt from GST - the services provided by the applicant to the various Municipal Corporation Councils are actually aiding and helping the said Municipal Corporation Councils to perform the functions entrusted to them under Article 243W of the Constitution - the applicant is rendering Pure Services to various Municipal Corporation Councils and the said Pure Services are rendered in relation to the functions entrusted to the said Municipal Corporation Councils under Article 243W of the Constitution. Whether the services provided by the applicant fall under the Exemption Notification No. 12/2017 dated 28 th June, 2017 (Entry No. 3 of Exemption Notification) as amended from time to time as the services are in the nature of pure labour services? - HELD THAT - In the subject case the applicant is providing pure services (without the supply of goods), to the various Municipal Corporation Councils. The said services are in relation to any functions entrusted to a Municipality under article 243W of the Constitution. Hence, the applicant is entitled to the benefit of Notification No. 12/2007-CT-(Rate) dated 28.06.2017.

Issues Involved:
1. Whether the services provided by the Applicant are covered under Clause 1 & 2 of Twelfth Schedule of Article 243W.
2. Whether the services provided by the applicant fall under Exemption Notification No. 12/2017 dated 28th June 2017 (Entry No. 3 of Exemption Notification) as amended from time to time as the services are in the nature of pure labour services.

Detailed Analysis:

Issue 1: Coverage under Clause 1 & 2 of Twelfth Schedule of Article 243W
The applicant, M/s Core Project Engineers & Consultants Private Limited, provides Mapping Services to various Municipal Corporations and Councils to identify unpermitted construction areas. These services include Urban Planning, Town Planning, and Land Use Planning. The applicant argues that their services align with Clause 1 (Urban Planning including Town Planning) and Clause 2 (Planning of Land Use and Construction of Buildings) of the Twelfth Schedule of Article 243W of the Constitution.

The Authority for Advance Ruling (AAR) examined the nature of the services provided and confirmed that these services are indeed in relation to Urban Planning and Town Planning. The services provided by the applicant help local authorities in planning and controlling land use, thereby falling under the functions entrusted to municipalities under Article 243W of the Constitution.

Issue 2: Applicability of Exemption Notification No. 12/2017
The applicant contends that their services should be exempt from GST under Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017, specifically under Entry No. 3, which exempts pure services provided to the government or local authority in relation to functions entrusted to a Panchayat under Article 243G or a Municipality under Article 243W.

The AAR reviewed the detailed submissions and found that the applicant's services do not involve the supply of goods, thus qualifying as "pure services." The services provided by the applicant, such as Mapping, Property Survey, Tax Assessment, and Property Document Management, are directly related to Urban Planning and Town Planning functions entrusted to municipalities under Article 243W. Consequently, these services are exempt from GST as per the specified notification.

Conclusion:
The AAR concluded that the services provided by the applicant are covered under Clause 1 and 2 of the Twelfth Schedule of Article 243W and are eligible for exemption under Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017. Therefore, the services provided by the applicant to various Municipal Corporations and Councils are exempt from GST.

Order:
1. The services provided by the Applicant are covered under Clause 1 & 2 of Twelfth Schedule of Article 243W.
2. The services provided by the applicant fall under the Exemption Notification No. 12/2017 dated 28th June 2017 (Entry No. 3 of Exemption Notification) as amended from time to time as the services are in the nature of pure labour services.

The AAR answered both questions in the affirmative, affirming the applicant's eligibility for GST exemption.

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