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TMI Blog2019 (4) TMI 1400X X X X Extracts X X X X X X X X Extracts X X X X ..... ities undertaken by the applicant in which if there is only 'pure services' then it will attracts nil rate of tax. In other activities where there is composite supply and supply of goods is less than 25% out of total supply then also it attracts nil rate of duty. As for these activities, there is Nil rate of GST so provisions of TDS will also not be applicable on the applicant - If the activity undertaken by the applicant where there is Works Contract of Composite Supply composite supply of goods and services and quantum of supply of goods is more than 25% then rate of GST will be applicable as mentioned in respective Notification. As the activities attracts GST and are not Nil rated therefore, provisions of TDS will be applicable. In Composite supply of goods and services where supply of goods is more than 25% of the total value of supply, will attracts GST @ 12% (SGST 6%+CGST6%) if the activity fall under purview of Serial No. 3 of Notification 11/2017 (CT-rate) dated 28.06.2017 as amended from time to time and if not, then GST @ 18% will be applicable. Provisions of GST TDS will apply as the activity in this case is taxable. - ADVANCE RULING NO. RAJ/AAR/2018-19/37 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ervices Tax Act, 2017 in Division-G of CGST Udaipur Commissionerate. 2. QUESTIONS ON WHICH THE ADVANCE RULING IS SOUGHT 3. PERSONAL HEARING In the matter personal hearing was granted to the applicant on 01.03.2019 at Room no. 2.29 NCRB, Statue Circle, Jaipur. Shri Pradeep Patidar and Shri Mukesh Mohil (Authorised Representative) of applicant appeared for PH. during the PH, he reiterated the submissions already made in the application. He further requested that the case may be decided at the earliest. 4. COMMENTS OF THE JURISDICTIONAL OFFICER The jurisdiction officer (Assistant Commissioner, CGST Division-G, Plot Number 168-172, Sector-4, Gandhinagar, District-Chittorgarh 312001) has submitted his comments vide letter dated 22.02.2019 which can be summarized as, the supply of pure services to Central Government, State Government or Union territory or local authority or a Governmental Authority by any activity in relation to any function entrusted to a Panchayat under article 243G of the Constitution or in relation to any function entrusted to a Municipality under article 243W of the Constitut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... On perusal of said Schedule it is evident that services receive by applicant viz. cleaning of road, garden, toilets and waste collection are mentioned under point number 4,10,12,13 and 17. Thus, it is easily ascertained that the applicant being a local Authority is providing services to citizens. d. The serial no. 3 of Notification No. 12/2017 Central tax(Rate) dated 28.06.2017 emphasize on pure services received by the local authority which is reproduced as under: Sl. No. Chapter, Section, Heading, Group or Service Code (Tariff) Description of Services Rate (per cent.) Condition 3 Chapter 99 Pure services (excluding works contract service or other composite supplies involving supply of any goods) provided to the Central Government, State Government or Union territory or local authority or a Governmental authority by way of any activity in relation to any function entrusted to a Panchayat under article 243G of the Constitution or in re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from Nil. h. Section 51 of CGST/RGST Act, 2017 has made provision in relation to Tax Deduction at Source (TDS) which is as below:- 51. (1) Notwithstanding anything to the contrary contained in this Act, the Government may mandate,- (a) a department or establishment of the Central Government or State Government; or (b) local authority; or (c) Governmental agencies; or (d) such persons or category of persons as may be notified by the Government on the recommendations of the Council, (hereafter in this section referred to as the deductor ), to deduct tax at the rate of one per cent. from the payment made or credited to the supplier (hereafter in this section referred to as the deductee ) of taxable goods or services or both, where the total value of such supply, under a contract, exceeds two lakh and fifty thousand rupees: Provided that no deduction shall be made if the location of the supplier and the place of supply is in a State or Union territory which is different from the State or as the case may be, Union territory of registration of the recipie ..... X X X X Extracts X X X X X X X X Extracts X X X X
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