9911796707
TMI Blog2019 (2) TMI 187X X X X Extracts X X X X X X X X Extracts X X X X ..... d, Guindy, Chennai 600032 (hereinafter called the Applicant or TWIC) is imparting Management Consultant and DPR services to Chennai Metro Water Supply and Sewerage Board (CMWSSB) for the water related projects at Chennai. They are also rendering Consultancy Services to others and pay CGST and SGST taxes duly, besides carrying on services to Common Effluent Treatment Plant. They are Registered vide GSTIN: 33AABCT8153B1ZP. They have sought advance ruling on "Whether the services rendered by them to CMWSSB is exempted under SI. No. 3 of Notification No. 12/2017-CT (Rate) dated 28th June 201 7". The Applicant has submitted the Advance Ruling in Form GST ARA - 01 and had enclosed challan for payment of fees of Rs. 5,000/- each under sub-rule (1) of Rule 104 of CGST Rules 2017and SGST Rules 2017. 2.1 The Applicant has stated that they have entered into agreement with CMWSSB for * Project Management Consultancy for the work Construction Management and Supervision including off-site inspection for the proposed design, Build and Commissioning of 45 MLD capacity Tertiary Treatment Reverse Osmosis(TTRO) Plant at Kodungaiyur &Koyambedu, Chennai City * Consultancy Services for preparatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rship along with enclosures and Copy of Agreement entered into with CMWSSB for Project Management Consultancy Services of Chennai T.Nagar under Smart City Mission. 4.0 Submissions of the Applicant were verified with reference to the connected documents and copy of contracts submitted by the Applicant. It is seen that the Applicant has entered into Contracts for Project Management Consultancy Services with CMWSSB for Construction, Management and Supervision including Off-site Inspection for the proposed Design, Build and commissioning of 45 MLD capacity Tertiary Treatment Reverse Osmosis (TTRO) Plant at Kodungaiyur and Koyambedu. The project at Kodungaiyur, for recycling and re-using of waste water for the uses other than drinking purposes for various industries at Manali-Minjur and Manali-Ennore corridor, North Chennai for their industrial use. The project at Koyambedu, for recycling and re-using of waste water for the uses other than drinking purposes for SIPCOT industries at Irungattukottai, Sriperumbudur and Oragadam for their industrial use. The Applicant will provide supervision of the Construction Works including Design, Testing Quality Assurance, carry out 3rd party inspec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eover of Assets and Liabilities from Chennai Municipal Corporation and Tamil Nadu Water Supply and Drainage Board) and controlled by the Government by way of appointing Directors of the CWSSB Board to carry out the functions of supplying water for Domestic, Industrial and Commercial purposes as well as Sanitation Conservancy by way of disposal, which is entrusted to a municipality under Article 243W of the Constitution. The related copies of the Act and Annual Report were enclosed which supports the statement made in the letter of CMWSSB. It is seen that the Minister and Secretary in charge of "Water Supply" are on the Board and on setting up of CMWSSB, the Local Authority was required to transfer all assets, liabilities, legal proceedings and properties relating to water and sewerage works to CMWSSB. It is seen from the Annual report that CMWSSB gets income from sale of water and charges on sewerage water by way of Water Tax and Sewerage Tax, grants from the government etc. 5. The Advance Ruling is sought on the applicability of exemption under SI. No. 3 of Notification No. 12/2017 Central Tax (Rate) dated 28th June 2017 to the three contracts entered into by the Applicant with C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... up by an Act of Parliament or a State Legislature; or (ii) established by any Government, with 90per cent, or more participation by way of equity or control, to carry out any function entrusted to a Municipality under article 243 W of the Constitution or to a Panchayat under article 243 G of the Constitution." From the above, it is evident that if any "Pure Services" are provided to a Governmental Authority by way of any activity in relation to any function entrusted to a municipality under Article 243 W of the Constitution and that 'Governmental Authority' is an Authority or a Board set up by an Act of Parliament or a State Legislature or established by the Government with 90 percent or more participation by way of equity or control to carry out any function entrusted to a municipality under article 243 W of the Constitution, then the same is exempted vide SI.No. 3 of the Notification No. 12/2017-Central Tax (Rate) referred above. 6.2 In the case at hand, from the documents furnished by the Applicant, we find that CMWSSB is a Board constituted by an act of Tamil Nadu State Legislature called Chennai Metropolitan Water Supply and Sewerage Act, 1978 (Tamil Nadu Act 28 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... staff costs, Sub-consultants costs, Printing, Communications, Travel, Accommodation and all other costs incurred in carrying out the services based on the areas of investigation and manpower used. 6.4 The above clearly shows that the activity of the Applicant envisaged by the three agreements furnished by the applicant is supply of 'Pure Services' to CMWSSB which is a 'Governmental Authority" relating to water supply for industrial use and sanitation conservancy which are covered under Twelfth Schedule of Article 243 W of the Constitution. Therefore, the services rendered by the Applicant are exempted from CGST under SI.No. 3 of the Notification No. 12/2017-Central Tax (Rate) dated 28th June 2017 as amended and exempted from SGST under Sl.No. 3 of the G.O. (Ms) No. 73 dated 29.06.2017 No.II (2)/CTR/532(d-15)/2017 as amended. 7. In view of the foregoing, we rule as under: RULING The activity of the Applicant as per the three contracts entered into with Chennai Metro Water Supply and Sewerage Board i.e. for Project Management Consultancy (PMC) Services entered by Applicant with CMWSSB for construction management and supervision including off-site inspection for the p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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