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TMI Blog2019 (9) TMI 513X X X X Extracts X X X X X X X X Extracts X X X X ..... illa Parishad] to undertake schemes and adopt measures for public health and sanitation, including establishment and maintenance of dispensaries and hospitals. Managing procurement of drugs and equipment for the medical colleges and hospitals and construction and maintenance of health facilities is an activity in relation to establishment and maintenance of hospitals and dispensaries. The Applicant, therefore, is a body established by a State Government Notification, with 100 per cent participation by way of equity and control, to carry out a function entrusted to a Panchayat under Sl No. 23 of the Eleventh Schedule under Article 243 G of the Constitution. It is, therefore, a Governmental Authority as defined under para 2(zf) of the Exemption Notification. The Applicant has not provided any invoice or work order. The description of the activity for which the Applicant raises tax invoice is, therefore, not ascertained. However, the Applicant is eligible for exemption under Sl No. 5 of the Exemption Notification on supply of any service, including composite supplies like works contract service whatever be the proportion of goods, in relation to establishment and maintenance of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7(2) (b) of the GST Act empowers this Authority to pronounce a ruling on the applicability of a notification issued under the GST Act. A question on the rate of tax or exemption, as the case may be, examines the applicability of any entry of the notifications issued under the GST Act, specifying the rate of tax or exemption from payment of tax. The question raised by the Applicant, therefore, involves ascertaining the applicability of the specific provisions of the Exemption Notification and is admissible for advance ruling under section 97 (b) of the GST Act. 1.5 The Applicant further submits that the question raised in the Application is neither decided by nor pending for decision before any authority under any provisions of the GST Act. The concerned officer from the Revenue does not object to the admission on this point. 1.6 The Application is, therefore, admitted. 2. Submissions of the Applicant 2.1 The Applicant submits that it is a governmental authority as defined under clause 2(zf) of the Exemption Notification. The services it supplies are activities in relation to the function entrusted to a Panchayat under Sl No. 23 of the Elevent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... curements involve the supply of goods. The Services rendered by the Applicant are, therefore, far from being pure service. Moreover, the Applicant submits no evidence to support any claim that the supply of goods involved constitutes only 25% of the value. 4. Observations Findings of the Authority 4.1 In its Circular No. 51/25/2018-GST dated 31/07/2018 the Central Government clarifies that the service tax exemption under Sl 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 Notification. 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, sanitation, conservancy, solid waste management or slum improvement and upgradation. The Circular further explains in relation to the specific issue of ambulance service to the Government by a private service provider (PSP) that such service is a function of public health entrusted to Municipalities under Art 243W of the Constitution, a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... two aspects: whether the Applicant is a governmental authority as defined under para 2(zf) of the Exemption Notification, and whether the service it provides is an activity relatable to a function listed under the Eleventh or the Twelfth Schedule under Art 243 G or 243 W of the Constitution. 4.5 According to para 2(zf) of the Exemption Notification, a governmental authority means an authority or a board or any body (i) set up by an Act of Parliament or a State Legislature; or (ii) established by any Government, with 90 per 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. 4.6 The Applicant has been set up under Notification No. HF/SPSRC/WBMSC/40/2008/162 dated 17/1 1/2008 of the Department of Health Family Welfare, Government of West Bengal, as a fully owned body for managing the procurement of drugs and equipment for the medical colleges and hospitals and construction and maintenance of health facilities. 4.7 Sl No. 23 of the Eleventh Schedule of the Constitutio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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