9911796707
TMI Blog2020 (6) TMI 538X X X X Extracts X X X X X X X X Extracts X X X X ..... s at present. Further, there could also be modifications/ amendments in the existing agreements and the nature of service could be subsequently altered. Therefore, the reply to the query raised by the applicant cannot be answered in plain no or yes . The applicant is eligible to claim exemption benefit under Sr.No.3 of Notification No.12/2017-Central Tax (Rate) dated 28.06.2017 for pure services (supply of manpower, security service) provided to Central Government, State Government, Local Authorities, Governmental Authorities, Government Entities as detailed above subject to the condition that the services provided to these entities mentioned above are provided by way of any activity in relation to any function entrusted to a Panchayat under Article 243G of the Constitution of India or in relation to any function entrusted to a Municipality under Article 243W of the Constitution of India. X X X X Extracts X X X X X X X X Extracts X X X X ..... e public interest so to do, on the recommendations of the Council, hereby exempts the intra-State supply of services of description as specified in column (3) of the Table below from so much of the central tax leviable thereon under sub-section (1) of section 9 of the said Act, as is in excess of the said tax calculated at the rate as specified in the corresponding entry in column (4) of the said Table, unless specified otherwise, subject to the relevant conditions as specified in the corresponding entry in column (5) of the said Table, namely:- Sl.No. Chapter Description of Service Rate Condition 3. Heading 9954 (Construction services) 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 or a Government entity by way of 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 Constitution. NIL NIL Relevant portion of Notification No.12/2017-State Tax(Rate) dated 30. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssion. 4. The applicant has further submitted that the crux of the above exemption entry can be summarized for taking benefit of the said exemption as under: (i) Pure services are provided. (ii) Service recipient is either Central Government or State Government or Local authority or Government entity: and (iii) Such services are provided to the specified recipients to perform functions as mentioned under Article 243G or under Article 243W of the Constitution. 5. As per the applicant's submission, 243G of the Constitution of India has entrusted the following functions to the panchayats: 1. Agriculture, including agricultural extension. 2. Land improvement, implementation of land reforms, land consolidation and soil conservation. 3. Minor irrigation, water management and watershed development. 4. Animal husbandry, dairying and poultry. 5. Fisheries. 6. Social forestry and farm forestry. 7. Minor forest produce. 8. Small scale industries, including food processing industries. 9. Khadi, village and cottage industries. 10. Rural housing. 11. Drinking water. 12. Fuel and fodder. 13. Roads, culverts, bridges, ferries, waterways and other means of communic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t involvement of supply of goods then the said supply of service can be termed as supply of 'Pure service'. 8. The applicant have further submitted that they are providing man power supply service to the Coast Guard Region (NW) for which they have submitted copy of work order; that the applicant is providing man power supply service for peon, computer operators, drivers, security guards, sweepers and office boys to various district collectors and jilla panchayats i.e. state governments like (i) Collector of Ahmedabad, Bhavnagar, Godhara and Dwarka& (ii) Bhavnagar Forest Department for which they have submitted work orders; the applicant has submitted a copy of one order received from Additional Collector, Morbi which states GST shall not be applicable on the supply of manpower provided to them by the applicant; that the applicant is providing man power supply for computer operators, sweepers, housekeepers etc. to various Municipality Corporations like Ahmedabad Municipal Corporation and Mehsana Municipal Corporation and that as per definition given in section 2(69) of the CGST Act, 2017, such municipal corporations shall be termed as Local authorities; that they have submitted cop ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tal Authority, Governmental Entity and Local Authority. Sr.No. Name of party Amount (Rs.) Constitution of party 1. Coast Guard Region (NW) 72,00204/- Central Government 2. Collector of Ahmedabad, Bhavnagar, Godhara and Dwarka 1,03,70,590/- Gujarat State Government 3. Bhavnagar Forest Department 48,689/- Gujarat State Government 4. Jilla Panchayat, Mehsana 1,60,983/- Local Authority 5. Chief Officer of Ahmedabad and Mehsana Municipal Corporation 11,60,992/- Local Authority 6. Industrial Extension Bureau, Gujarat 3,60,248/- Governmental Authority 7. SardarSarovar Nigam limited 65,62,501/- Governmental Authority 8. Gujarat State Nagrikpurvatha limited 1,63,574/- Governmental Authority 9. Chief Engineer, PGVCL 2,64,00,693/- Limited company DISCUSSION & FINDINGS 11. We have considered the submissions made by the applicant in their application for advance ruling as well as at the time of personal hearing. The issue involved in this case is whether applicant is eligible to claim exemption benefit under Sr.No.3 of Notification No.12/2017-Central Tax (Rate) dated 28.06.2017and Notification No.12/2017-State Tax(Rate) dated 30.06.201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Gujarat 3,60,248/- Governmental Authority 7. Sardar Sarovar Nigam limited 65,62,501/- Governmental Authority 8. Gujarat State Nagrikpurvatha limited 1,63,574/- Governmental Authority 9. Chief Engineer, PGVCL 2,64,00,693/- Limited company The applicant has asked the following question on which advance ruling is sought: Whether the applicant is eligible to claim exemption benefit under Sr.No.3 of Notification No.12/2017-Central Tax (Rate) dated 28.06.2017 for Pure services (supply of manpower, security service) provided to Central Government, State Government, Local Authorities, Governmental Authorities, Government Entities as submitted in Annexure-A to the application? 12. The relevant portions of the aforementioned Notifications issued by the Central GST and State GST read as under: Relevant portion of Notification No.12/2017-Central Tax(Rate) dated 28.06.2017 reads as under: G.S.R......(E).- In exercise of the powers conferred by sub-section (1) of section 11 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n entrusted to a Municipality under article 243W of the Constitution. NIL NIL 13. Therefore, the conditions to be fulfilled to be eligible for taking the benefit of the exemption from GST under the above notifications, is as under: (i) Pure services are to be provided. (ii) Service recipient should either be Central Government or State Government or Union territory or Local authority or Governmental authority or Government entity: and (iii) Such services provided should be by way of any activity in relation to any function entrusted to a Panchayat under Article 243G of the Constitution of India or in relation to any function entrusted to a Municipality under Article 243W of the Constitution of India. 13.1 So, the first condition to be discussed is as to what is meant by pure service? Since 'pure service' has not been defined under GST, the same can be construed in general terms as any supply which is either deemed as services under Schedule II of CGST Act or which are not covered under the definition of goods shall be categorized as pure services. However, as per the notification, works contract services or other composite supplies involving supply of any goods are not c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t or a State Legislature; or (ii) established by any Government, with ninety per cent. or more participation by way of equity or control, to carry out any function entrusted to a municipality under article 243W of the Constitution; Notification No.12/2017-Central Tax (Rate) dated 28.06.2017 was further amended by Notification No.32/2017-Central Tax (Rate) dated 13.10.2017 wherein it is mentioned as under: in paragraph 2, for clause (zf), the following shall be substituted, namely: - (zf) "Governmental Authority" means an authority or a board or any other body, - (i) set up by an Act of Parliament or a State Legislature; or (ii) established by any Government, with 90per 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. (zfa) "Government Entity" means an authority or a board or any other body including a society, trust, corporation, (i) set up by an Act of Parliament or State Legislature; or (ii) established by any Government, with 90per cent. or more participation by way of equity or control, to carry out a f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Libraries. 21. Cultural activities. 22. Markets and fairs. 23. Health and sanitation, including hospitals, primary health centres and dispensaries. 24. Family welfare. 25. Women and child development. 26. Social welfare, including welfare of the handicapped and mentally retarded. 27. Welfare of the weaker sections, and in particular, of the Scheduled Castes and the Scheduled Tribes. 28. Public distribution system. 29. Maintenance of community assets. The functions entrusted to the municipalities under 243W of the Constitution of India are listed hereunder: 1. Urban planning including town planning. 2. Regulation of land-use and construction of buildings. 3. Planning for economic and social development. 4. Roads and bridges. 5. Water supply for domestic, industrial and commercial purposes. 6. Public health, sanitation conservancy and solid waste management. 7. Fire services. 8. Urban forestry, protection of the environment and promotion of ecological aspects. 9. Safeguarding the interests of weaker sections of society, including the handicapped and mentally retarded. 10. Slum improvement and upgradation. 11. Urban poverty alleviation. 12. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erms of fulfilment of this third condition can be discussed as below: a. The Work Order no. Napuni/BK/mkm/outsourcing/computer operator/varg-4/seval agency nimnuk/hukm/02/2018 dated 27.02.2018 has been awarded to the applicant by Gujarat State Nagarik Purvatha Nigam Limited, for providing personnel for computer data operator and watchmen at its godowns. Primary objective of the Civil Supply Corporation is procurement, storage, distribution of food grains, edible oils, sugar, pulses, refined iodised salt for the requirement of public distribution system. We find that the said service is provided by the applicant in relation of discharge of functions covered under Sr. No. 28 (Public Distribution System) of Article 243G of the Constitution of India. b. The Tender No. PGVCL/Projects/Manpower/2016/58 was floated by M/s PGCVL to seek the services of Manpower (Engineers) & Manpower (Electrical Assistant) on contract basis to carry out RE related activities under various Sub-Divisions of PGVCL with detailed functioning of engineers and electrical assistants. We find that the said service is provided by the applicant in relation of discharge of functions covered under Sr. No. 14 [Rural ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nvironment and promotion of ecological aspects] of the Constitution of India. g. Likewise, Bhavnagar Collector Office, issued letter no. Mkm-1/vshi/Tender/2613/2017 dated 26.12.2017, appointing the applicant as manpower outsource agency for the work of pattawallah/driver/data entry operator to help in the fundamental works entrusted upon their offices. We find that the said service is provided by the applicant in relation to discharge of various responsibilities cast upon the collector's office covered under Article 243G and Article 243W of the Constitution of India. Therefore, the exemption sought by the applicant will depend upon the nature of services provided by them in terms of specific contracts entered by them with respective service recipients. 14. In view of the above facts, we come to the conclusion that the applicant is eligible to claim exemption benefit under Sr.No.3 of Notification No.12/2017-Central Tax (Rate) dated 28.06.2017 for pure services (supply of manpower, security service) provided to Central Government, State Government, Local Authorities, Governmental Authorities, Government Entities as detailed above subject to the condition that the services provide ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
