2023 (3) TMI 1258 - AAAR - GST

Rectification of error - Exemption from GST - Services rendered through tender Contractors - Right to collect the fees/right to certain amenities. HELD THAT - The rectification of errors sought are as follows The transaction between the Corporation and the contractor as listed in Sl.No. 1 to 9 and 13, except at Sl.No. 5A-Chargcs for TV advt. in Bus Stand; 5C-14owcr shop in bus stand in open space, Sl.No. 7-Bunk Stalls, of the said question, in the factual matrix presented, it is held to be an activity/transaction in relation to the activity/transaction undertaken by the appellant engaged as Public authority and the same are covered under Notification No. 14/2017-C.T.(Rate) as amended. The transaction between the Corporation and the contractor as listed in Sl.No. 10 (Avenue receipts) and 11 (right to fishing in pond), the supply of said services which is basically conferring enjoyment of rights, would be liable to reverse charge by the Tenderer who is registered under the CGST Act /TNGST Act vide SI. No.5 A of Notification No. 13/2017-CT(Rate) dated 28-6-2017. The transaction between the Corporation and the contractor as listed in Sl.No. 12 (Running a fish market), for such an activity, the exemption under sl.no. 7 of Notification No. 12/2017-CT (Rate) is available as well as charging of tax on RCM basis under si. No. 5 of Notification No. 13/2017-CT(R) is available to the appellant subject to the fulfillment of the conditions envisaged therein.

Summary

Issues Involved:
1. Rectification of the ruling for activities listed in Sl. No. 10, 11, and 12.
2. Classification and exemption applicability for activities at Sl. No. 5A, 5C, and 7.
3. Correct jurisdictional authority.

Detailed Analysis:

Issue 1: Rectification of the Ruling for Activities Listed in Sl. No. 10, 11, and 12
The appellant sought rectification for the ruling concerning activities at Sl. No. 10 (Avenue receipts), 11 (Right to fishing in pond), and 12 (Running a fish market), which were omitted in the original order. The appellant requested clarification on whether these services were covered under the Twelfth Schedule to Article 243 W of the Constitution and/or exempted via relevant notifications.

Upon review, the appellate authority found that these activities were entirely undertaken through contractors by tender process. The appellant did not specifically seek the applicability of Notification No. 14/2017-C.T.(Rate) but claimed the activities were covered under Article 243 G and 243 W of the Constitution. The authority concluded that the activities were for the "enjoyment of rights" rather than "giving of services," and thus, Notification No. 14/2017-C.T.(Rate) would not apply.

For Avenue receipts and Right to fishing in pond, the authority determined that these activities fall under the definition of "renting of immovable property" and are subject to reverse charge by the tenderer as per Sl. No. 5A of Notification No. 13/2017-CT(Rate). The exemption entries in Notification No. 12/2017-CT(Rate) and Notification No. 11/2017-CT(Rate) were found inapplicable.

For Running a fish market, the activity was classified as "right to Renting of Immovable Property" and was eligible for exemption under Sl. No. 7 of Notification No. 12/2017-CT(Rate) and subject to tax on RCM basis under Sl. No. 5 of Notification No. 13/2017-CT(R).

Issue 2: Classification and Exemption Applicability for Activities at Sl. No. 5A, 5C, and 7
The appellant contended that the activities at Sl. No. 5A (Charges for TV advertisement in bus stand), 5C (Flower shop in bus stand), and 7 (Bunk stall in bus stand) were incorrectly classified under "renting of immovable property services" and should be rectified.

The appellate authority reviewed the classification and found that the activities were correctly classified under "renting of immovable property services" as per para 9.2 of the appellate order. The authority held that these activities were covered under Sl. No. 7 of Notification 12/2017-CT(Rate) and subject to tax on RCM basis as per Sl. No. 5 of Notification No. 13/2017-CT(R). Therefore, the request for rectification was rejected as there was no error apparent on the face of the record.

Issue 3: Correct Jurisdictional Authority
The appellant pointed out that the jurisdiction was incorrectly mentioned as Coimbatore Commissionerate in the original order, whereas it should be Salem Commissionerate, Erode Division. The appellate authority acknowledged this error and rectified the jurisdictional authority to Salem Commissionerate, Erode Division.

Final Ruling on Rectification of Error:
- Rectified Ruling for Activities at Sl. No. 10 and 11: The supply of services conferring enjoyment of rights is liable to reverse charge by the tenderer registered under the CGST/TNGST Act as per Sl. No. 5A of Notification No. 13/2017-CT(Rate).
- Rectified Ruling for Activity at Sl. No. 12: Exemption under Sl. No. 7 of Notification No. 12/2017-CT(Rate) and tax on RCM basis under Sl. No. 5 of Notification No. 13/2017-CT(R) is available subject to conditions.
- No Amendment for Activities at Sl. No. 5A, 5C, and 7: The request for rectification was rejected.
- Corrected Jurisdictional Authority: Salem Commissionerate, Erode Division.