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TMI Blog2019 (8) TMI 1155X X X X Extracts X X X X X X X X Extracts X X X X ..... ;, as applied to Sl No. 3 or 3A, makes no substantial difference between Sl No. 25(a) of the ST Notification and Sl No. 3 or 3A of the Exemption Notifications (Service). Under the previous service tax regime, the exemption was limited to certain functions specified in Sl No. 25(a) of the ST Notification, whereas, under the GST the ambit has been broadened to include any such functions that are performed by a Panchayat or a Municipality under specific provisions of the Constitution - These functions are in the nature of public welfare service that the governments on their own, and sometimes through governmental authorities/entities, do provide to the citizens - When the activity is in relation to any such function, the supply to the governme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... State Government entrusts the Panchayat by specific order a work that advances the cause of economic development and social justice. In the discharge of its functions, the Zilla Parishad shall, therefore, be guided by such instructions or directions as the State Government may give from time to time under section 212 of the 1973 Act. The Applicant's service to PMZP, therefore, is exempt under Sl No. 3A of the Exemption Notifications (Service) - The question of liability to pay tax on the Applicant's supply of service to PMZP being thus answered, further probing with respect to tax KTPS is paying on reverse charge basis is not necessary. - Case Number 26 of 2019 Order No. 16/WBAAR/2019-20 - - - Dated:- 19-8-2019 - MS. SUSMI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r Sl No. 3 or 3A of Notification No. 12/2017 - Central Tax (Rate) dated 28/06/2017 (corresponding State Notification No. 1136 - FT dated 28/06/2017), as amended from time to time [hereinafter collectively referred to as Exemption Notifications (Service)]. The Applicant further wants to know whether it has any liability to pay GST when WBPDCL is paying tax on reverse charge basis in terms of Sl. No. 5 of Notification No. 13/2017 - CT (Rate) dated 28/06/2017. 1.3 The questions raised are admissible under section 97 (2) (a), (b) (e) of the GST Act. The Applicant declares that the questions are not pending before or have not been decided by any authority under any proceedings of the GST Act. The concerned officer from the Revenue has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tions entrusted to a Panchayat under Article 243G of the Constitution and exempted under Sl No. 3 of the Exemption Notifications (Service). 3. Observations and findings of the Bench 3.1 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 GST vide Sl No. 3 and 3A of the Exemption Notifications (Service). Sl No. 25(a) of the ST notification under the service tax exempts services provided to the Government, a local authority or a governmental authority by way of water supply, public health, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... posite supply, where supply of goods does not constitute more than 25% of the value. 3.3 The Applicant's eligibility under Sl No. 3 or 3A of the Exemption Notifications (Service) 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 a Panchayat or a Municipality under the Constitution, as clarified in the above paragraphs. 3.5 Scrutiny of the work as des ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3.8 Unless an activity is directly concerned with a matter listed in the Eleventh Schedule, the State Government entrusts the Panchayat by specific order a work that advances the cause of economic development and social justice. In the discharge of its functions, the Zilla Parishad shall, therefore, be guided by such instructions or directions as the State Government may give from time to time under section 212 of the 1973 Act. The State Government issued one such order (No. 2071/PN/O/l/2M-3/2000 dated 27/05/2005), allowing PMZP to undertake evacuation and disposal of the settled ash from the ash ponds of KTPS to ensure uninterrupted power generation, protection of environment and augmentation of the local fund. Having been issued ..... X X X X Extracts X X X X X X X X Extracts X X X X
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