9911796707
TMI Blog2019 (6) TMI 488X X X X Extracts X X X X X X X X Extracts X X X X ..... lock Daspur - 1 2 and P.S Daspur in Paschim Medinipur - recipient is the State Government - HELD THAT:- As such, compacting, in the course of which goods are to be supplied, constitutes only 2% of the value of the contract. It is, therefore, a composite supply primarily of various services, principal supply being the service of resuscitation of the river, where the supply of goods constitutes well below the threshold mentioned in Sl No. 3A of the Exemption Notification. The services are relatable to the function listed under Sl No. 5 of the Eleventh Schedule, especially when undertaken by a department of the State Government, which is primarily entrusted to execute such functions. The Applicant s service to the recipient, therefore, is exem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r in Block Daspur - 1 & 2 and P.S Daspur in Paschim Medinipur. The Applicant seeks a ruling on whether exemption under Sl No. 3 or 3A of Notification No 9/2017 - Integrated Tax (Rate) dated 28/06/2017 (hereinafter the Exemption Notification), as amended from time to time, applies to the above supply. 1.2 The question is admissible under section 97(2)(b) of CGST Act 2017/WBGST Act, 2017 (hereinafter collectively called GST Act 2017) read with clause (xviii) of section 20 of IGST Act, 2017. The concerned officer from the Revenue has not objected to the admission of the application and informs that the question raised by the Applicant is not pending or decided in any forum. 1.3 The application is, therefore, admitted. 2. Submissions of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Exemption Notification applies to the Applicant's supply. 3. Submission of the concerned officer from the Revenue 3.1 The concerned officer from the Revenue submits that the Exemption Notification applies to 'pure service' only. Description of the work as per the Price Schedule includes a reference to the supply of materials. The Exemption Notification is, therefore, not applicable to the Applicant's supply. 4. Observations and findings of the Bench 4.1 In its Circular No. 51/25/2018-GST dated 31/07/2018 the Central Government clarifies that the service tax exemption at serial No. 25(a) of Notification No. 25/2012 dated 20/06/2012 (hereinafter the ST Notification) has been substantially, although not in the same form, continued under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rnments or governmental authorities/entities or local authorities is exempt from paying GST under Sl No. 3 or 3A of the Exemption Notification, provided it is a pure service or a composite supply where supply of goods does not constitute more than 25% of the value. 4.3 The Applicant's eligibility under Sl No. 3 or 3A of the Exemption Notification should, therefore, be examined from three aspects: (1) whether the supply being made is pure service or a composite supply, where supply of goods does not exceed more than 25% of the value of the supply, (2) whether the recipient is government, local authority, governmental authority or a government entity, and (3) whether the supply is being made in relation to any function entrusted to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... therein, with respect to. .the implementation of schemes for economic development and social justice as may be entrusted to them including those in relation to the matters listed in the Eleventh Schedule" which contains the following twenty-nine functional items: 1 Agriculture including agricultural expansion 2 Land improvement, implementation of land reforms, land consolidation and soil conservation 3 Animal Husbandry, Dairying and poultry 4 Fisheries 5 Minor irrigation, water management and watershed development 6 Social forestry and farm forestry 7 Small scale industries in which food processing industry is involved 8 Minor forest produce 9 Safe water for drinking 10 Khadi, village and cottage industries 11 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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