9911796707
TMI Blog2019 (7) TMI 1107X X X X Extracts X X X X X X X X Extracts X X X X ..... elecommunication network or internet. Thus, the intention of the legislature is very clear, to treat such activities as supply of services - Online tendering is a type of service which are rendered by NMMC to the various person who are willing to fulfill their requirement for procurement of goods or services which will be raised on their website (www.nmmc.gov.in) or on common portal of the Government of Maharashtra (www.mahatender.gov.in) or on any other authorized website. Whether offline tendering to be considered as Supply of Goods or Supply of Services? - HELD THAT:- Offline Tendering does not satisfy the definition of goods , in its entirety. The definition of services as mentioned in the Business Dictionary: Intangible products such as accounting, banking, cleaning, consultancy, education, insurance, expertise, medical treatment, or transportation. Sometimes services are difficult to identify because they are closely associated with a good; such as the combination of a diagnosis with the administration of a medicine. No transfer of possession or ownership takes place when services are sold - Hence offline tendering will also be considered as rendering of services. U ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by Bombay Provincial Municipal Corporation Act, 1949. There is no special statute for formation of any Municipal Corporation. The Corporation is headed by an IAS cadre person deputed by Govt. of Maharashtra. It caters to the civic services to the residents of city which are specified by Clause 243 W of Constitution of India, such as activity in relation to any function ordinarily entrusted to a municipality in relation to water supply, public health, sanitation conservancy, solid waste management or slum improvement upgradation Health services etc. These activities are included activity in Capital Revenue nature. These activities are carried out by the Corporation without any commercial motive. It works under Urban Development Department of Government of Maharashtra being Local Authority: While developing various facilities providing various services to the residents of city we have come across various issues on applicability of GST, the said services are elaborated below. While developing various facilities or to run useful activities for public at large the NMMC. procures various services, goods from various contractors vendor. The of procurement of goo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ered under supply of services. GST applicable 18%. 2) Offline tendering - The Navi Mumbai Muncipal Corporation sold tender forms thereafter all the process related to the tendering (applicable /payment of fees) along with copies submission of technical and financial bid by manually. In this case sales of manual tender form is supply of goods. And tender fees while submission of tender is a supply of services. Applicable GST 18%. 3. Tariff head of online tendering - Residual rate of tax 18% 4. Tariff head of Offline tendering - Residual rate of tax 12% for sales of tender forms and 18% fir tender fees. 5. Tender fees is covered under specific service (financial Services) 04. HEARING Preliminary hearing in the matter was held on 13.03.2019. Sh. Rututraj S. Chingale, C.A, appeared and requested for admission of their application. Jurisdictional Officer Sh. Thombre, Dy. Commr. of S.T.(RAI-VAT-E-002), LTU-1, Raigad division, Navi Mumbai, appeared made written submissions. The application was admitted and called for final hearing on 06.06.2019. Sh. Rututraj S.Chingale, C.A along with Sh. Nalawade ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rom the above it is clear that Online Tendering does not satisfy the definition of goods . The definition of services as mentioned in the Business Dictionary: Intangible products such as accounting, banking, cleaning, consultancy, education, insurance, expertise, medical treatment, or transportation. Sometimes services are difficult to identify because they are closely associated with a good; such as the combination of a diagnosis with the administration of a medicine. No transfer of possession or ownership takes place when services are sold, and they (1) cannot be stored or transported, (2) are instantly perishable, and (3) come into existence at the time they are bought and consumed. 5.6 Further we find that the IGST Act has defined Online Information and Data Access or Retrieval Services to include different services, for the sake of better understanding we may now refer to Online Information and Data Access Services mentioned in Section 2 (17) of the IGST Act which is reproduced as under:- online information and database access or retrieval services means services whose delivery is mediated by information technology over the internet or an electronic ne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... endering too, there are intangible products such as application, payment of fees, submission of technical financial bid, etc. These services are difficult to be identified individually. In both cases NMMC by floating the tender not only sells the form but collects them from the applicant and processes them and finally after the entire process of documentation, verification of the applicant s position to perform the contract, proceeds to give the tender to a particular person to the exclusion of others. In the process they also collect processing fees and other deposits from the various persons who are willing to fulfill their requirement for procurement of goods or services. As per Section 2(12) of the CGST Act, 2017, services means anything other than goods, money and securities but includes activities relating to the use of money or its conversion by cash or by any other mode, from one form, currency or denomination, to another form, currency or denomination for which a separate consideration is charged. From the above it is clear that Offline Tendering does not satisfy the definition of goods , in its entirety. The definition of services as mentioned in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... NO. GST-ARA-122/2018-19/B-68 Mumbai, dt. 10-06-2019 For reasons as discussed in the body of the order, the questions are answered thus - Q. 1. Whether online tendering to be considered as Supply of Goods or Supply of Services. Ans: Online tendering will be considered as Supply of Services, Q 2. Whether offline tendering to be considered as Supply or Supply of Services. Ans. Offline tendering in its entirety involving sale of form, payment of tender fees and submission of bids etc. will be considered as Supply of Services. Q. 3. Under which tariff head the Online Tendering should get taxed. Ans. Online Tendering should get taxed under services heading 9997. Q. 4. Under which tariff head the Offline Tendering should get taxed. Ans: In view of the above discussions Offline Tendering will be treated as supply of service under services heading 9997. Q. 5. If tendering is service then whether it will be considered as administrative service or specific service. Ans : In view of the discussions made above we find that tendering will be covered under the re ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
