9911796707
TMI Blog2020 (10) TMI 811X X X X Extracts X X X X X X X X Extracts X X X X ..... company rendering pure consultancy services like project management consultancy services including construction, supervision, quality control, rejuvenation and development of lakes. Further applicant also involved in the preparation of detailed project report for pumping treated water, scientific landfill at Bengaluru quarries, construction of Raja Nala and Other development civil works etc. The Applicant is providing these services mainly to the Municipalities, Corporations (i.e. local bodies) and also to Government Departments and only in a few cases, a pure consultancy service is being provided to private parties. 3. The Applicant presently is rendering the following consultancy services: a. Providing consultancy services for the preparation of DPR for the work of sewage treatment plant of Seegehalli Lake to BBMP. b. Preparation of DPR for the construction of Kanaka Nayakana Mandira to BBMP c. Preparation of DPR for construction of sports complex at Terrace level of PalikeSoudha in Ward No.128 Nagarabhavi to BBMP d. Providing the consultancy services for construction, supervision, project management and Quality Control for renovation of Auditorium near Hampinagar City ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 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" 6. From the above, the applicant submitted that any type of 'pure services' provided to Central Government or State Government or to a local authority in relation to any function entrusted to a Municipality under Article 243W of the Constitution is exempt from payment of tax. The applicant further submitted that the works undertaken by the applicant is neither works contract service nor composite supply involving any goods. The applicant is involved in the supply of 'pure services' only to the Corporations, Municipalities and Government Department falling under Article 243W read with Twelfth Schedule of the Constitution and falls under serial number 3 of the Notification referred to above and hence exempt from payment of GST. PERSONAL HEARING 7. Sri Y.C. Shivakumar, Advocate and Duly Authorized Representative of the applicant company, appeared for personal hearing proceedings before this authority and reiterated the submissions as narrated above. 8. Subsequent to the personal hearing, the applicant has made the addi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Detailed Project Report (DPR) for construction of sports complex to BBMP. The Applicant is of the opinion that it falls under serial number 12 of the Twelfth Schedule which reads "Provision as of urban amenities and facilities such as parks, gardens and playgrounds". In this case the Applicant provides pure service, without involvement of goods, by preparing a DPR for construction of sports complex to BBMP. The BBMP being a local authority is mandated to provide urban amenities such as parks, gardens and playgrounds. The phrase "such as" indicates examples of urban amenities and not necessarily only those enumerated therein. The phrase "such as" is mentioned to introduce an example or series of examples. Hence, the Applicant is of the opinion that though 'sports complex' is not one of the entries under serial number 12 of the Twelfth Schedule, the construction of sports complex, among others, is included therein and hence exempt from GST. 4. Consultancy services -Construction, supervision, project management and Quality Control for Renovation of Auditorium to BBMP The Applicant is of the opinion that it falls under serial number 13 of the Twelfth Schedule ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecessary for human needs since some of the lakes are drinking water source and for Inland fisheries to many. Therefore, It is very important to save our lakes to maintain ecological balance in the environment. Thus, it falls under serial number 8 of the Twelfth Schedule and hence from GST. 7. Preparation of DPR to BBMP, for Pumping treated water from one lake to another lake and so on. The Applicant is of the opinion that it falls under serial number 8 of the Twelfth Schedule which reads as "Urban forestry, Protection of the environment and promotional of ecological aspects". In this case the Applicant provides pure consultancy service to BBMP, for pumping treated water from one lake to another lake and so on without involvement of goods. Here again the main focus is to de-contaminate the lakes by pumping treated water from one lake to the other. Lake ecosystems are vital resources for aquatic wildlife, plants and microbes. It is also necessary for human needs since some of the lakes are drinking water source and for inland fisheries to many. Therefore, It is very important save our lakes to maintain ecological balance in the environment. Thus, it falls under serial nu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hence exempt from GST. 10 Consultancy Services to BBMP for preparation of Survey, Designs, Drawing, Estimate preparation etc. for the work of construction of Indoor Stadium. The Applicant is of the opinion that it falls under serial number 12 of the Twelfth Schedule to the Constitution which reads as - "Provision of urban amenities and facilities, such as, parks, gardens and playgrounds". In this case the Applicant provides pure consultancy service of preparation of survey, designs, drawing, estimate and preparation etc. for the work of construction of indoor stadium. The said work falls under serial number 12 of the Constitution. Though specific reference to "indoor stadium " is not mentioned in serial number 12, the Applicant is of the opinion that it is covered under that serial number. Indoor stadium are constructed to play some of the sports like, badminton, swimming, table tennis, kabaddi, umnastics etc. The phrase used in the said entry is "such as", that means, the reference to parks, gardens and playgrounds mentioned therein is only examples. Any such urban amenities and facilities similar to the ones as above, are covered under that entry. Thus, indoor stadium is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ies, Corporations (i.e. local bodies) and to Government Departments and only in a few cases, a pure consultancy service is being provided to private parties. 13. The applicant presently rendering the following services : a. Providing consultancy services to BBMP for the preparation of DPR for the work of STP of Seegehalli Lake. b. Preparation of DPR for the construction of Kanaka Nayakana Mandira to BBMP. c. Preparation of DPR for construction of sports complex at Terrace level of Palike Soudha in Ward No.128 Nagarabhavi to BBMP. d. Providing the consultancy services for construction, supervision, project management and Quality Control for renovation of Auditorium near Hampinagar City Central Library building, Vijayanagara Division in Ward 133 to BBMP. e. Providing consultancy services for project management and quality assurance for the work of rejuvenation and development of Puttenahalli ta4 an ce Lake in Yelahanka, Bangalore Urban District to Forest Department. f. Providing project management consultancy services to BBMP including construction, supervision and quality control for the Package-L7 work of i. Development of Sarakki / Jaraganahalli / Puttenahalli Lake ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... und; (d) a Cantonment Board as defined in section 3 of the Cantonments Act, 2006; (e) a Regional Council or a District Council constituted under the Sixth Schedule to the Constitution; (f) a Development Board constituted under article 371 of the Constitution; or (g) a Regional Council constituted under article 371A of the Constitution; Further clause (e) of article 243P of the Constitution defines Municipality means an institution of self-government constituted under Article 243Q of the Constitution of India. Further the Governmental authority defined in the notification 31/2017 dated 13/10/2017 Central Tax (Rate) as under; "(ix) "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." Therefore from the above it is clear that the BBMP and Sindhanur Municipality come under the definition of local authority and the service provided ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d public conveniences. 18.Regulation of slaughterhouses and tanneries. 17. The applicant has submitted details of the services provided to the BBMP and to the State Government. Analysis of each of the services provided by the applicant whether they are related to the functions entrusted to the Municipality under Article 243W of the Constitution is as under. Sl.No. Nature of work undertaken by the Applicant. Relatable to entry under the Twelfth Schedule of the Constitution. 1. Providing Consultancy Services to BBMP for the Preparation of DPR for the work of STP of a particular lake. In this case the applicant provides pure service without involvement of goods, by preparing a DPR for the work of sewage treatment plant for a particular lake. DPR is prepared regarding the how the waste and sewage water could be treated before it is let into the lake. This sewage water treatment is undertaken by the BBMP to maintain public health and sanitation. Hence, preparing a DPR for the work of sewage treatment plant for a particular lakefalls is related to entry 6 (Public health, sanitation conservancy and solid waste management)of the Twelfth Schedule. 2. Preparation of DPR for the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and development of Lake to Forest Department. In this case the applicant provides pure consultancy service about project management and quality assurance for the work of Rejuvenation and development of lake to BBMP and to Forest Department without involvement of goods. It is very important to rejuvenate and development of lakes as these are source of ground water in the urban areas which maintain ecological balance in the environment. 7. Providing Project Management Consultancy Services including Construction, Supervision and Quality Control for the work of development of lakes, to BBMP Thus, Consultancy Services for Project management and quality assurance for the work of rejuvenation and development of Lake falls is related to serial number 8 (Urban forestry, protection of the environment and promotion of ecological aspects) of the Twelfth Schedule. 8. Preparation of DPR to BBMP, for Pumping treated water from one lake to another lake and so on. In this case the applicant provides pure consultancy service to BBMP, for pumping treated water from one lake to another lake and so on without involvement of goods. BBMP pumping treated water from one lake to the other for mainten ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... P or Forest Department to know the any involvement of goods to carry out above said functions. Hence subject to the condition that the applicant is providing the only pure service to the Local bodies and Forest Department to carry out the function entrusted, the said service is exempted from GST as per Sl. No. 3 of Notification No.12/2017-Central Tax (Rate), dated 28th June 2017. 19. From the above it is observed that applicant providing pure services (without supply of goods) to the Local bodies and to the Department of the State Government. The services provided by the applicant are in relation to the function entrusted to the Municipality under article 243W of the constitution. Hence the applicant is entitled to the benefit of Sl. No. 3 of Notification No.12/2017-Central Tax (Rate), dated 28th June 2017. 20. Further applicant also providing the consultancy services to the private individuals which is taxable under the entry No.21 of the heading 9983 of the Notification No. 11/2017 Central Tax (Rate) Dated 28/06/2017 which reads as under. Sl.No. Heading Description of Service Rate (Per Cent) 21 Heading 9983 (Other professional, technical and business services) (i) Sell ..... X X X X Extracts X X X X X X X X Extracts X X X X
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