9911796707
TMI Blog2020 (10) TMI 811X X X X Extracts X X X X X X X X Extracts X X X X ..... a few cases, a pure consultancy service is being provided to private parties - the work undertaken by the applicant reveals that he is providing majority of his services to the BBMP and Government Departments and to the smaller extent to the private individuals. The pure services provided to Central Government or State Government or to a local authority or Governmental authority in relation to any function entrusted to a Municipality under Article 243W of the Constitution is exempt from payment of tax - the BBMP and Sindhanur Municipality come under the definition of local authority and the service provided by the applicant to BBMP and Sindhanur Municipality is the service rendered to the local authority. The 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. Benefit of Input Tax Credit - HELD THAT:- Sub-section 2 of section 17 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sultancy 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. Consultancy services for project management and quality assurance for the work of rejuvenation and development of Puttenahalli 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 work of Package-L7 work of i. Development of Sarakki / Jaraganahalli / Puttenahalli Lake ii. Development of Annappanakere Lake / Yelchenahalli Lake Phase-land iii. Development of Subramanyapura Lake Phase-1 g. Preparation of DPR for pumping treated water from Jakkur Lake to Thirumenahalli Lake and Kogilu Lake in Byatarayanapura Assembly Constituency to BBMP h. Preparation of detailed project report for scientific landfill at Bengaluru Quarry, at Survey No.176 and 271, to BBMP and i. Project management consultancy service for preparation of DPR for Construction of Raja Nala and Other Development Civil Works in Sindhanur Municip ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 additional submission on 30.07.2020 and narrated how activities undertaken by him are related to the entry in Twelfth Schedule of the Constitution of India. The details are as under: Sl.No. Nature of work undertaken by the Applicant. Relatable to which entry under the Twelfth Schedule of the Constitution. Explanation of the Applicant with reference to the work undertaken vis- -vis the relevant serial number of Twelfth Schedule to the Constitution. 1. Providing consultancy services to BBMP for the preparation of DPR for the work of STP of a particular lake. The Applicant is of the opinion that it falls under serial number 6 of Twelfth Schedule of the Constitution which reads as Public health, sanitation, conservation and solid waste management In this case the Applicant provides pure service, without involvement of goods, by p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oduce 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 which reads as Promotion of cultural, educational and aesthetic aspects . In this case the Applicant provides pure consultancy service to BBMP, without involvement of goods, about construction, supervision, project management and quality control of Renovation of Auditorium. The Auditoriums built by BBMP are used for cultural activities, conduct of conferences, seminars and for Government functions etc. Examples of such auditoriums in Bengaluru are Town Halls, Ravindra Kalakshetra, Ambedkar Bhavan, etc. The Applicant is of the opinion that this service falls under promotion ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 number 8 of the Twelfth Schedule and hence exempt from GST 8. Preparation of Detailed Project Report for Scientific Landfill at Bengaluru, to BBMP; The Applicant is of the opinion that it falls under serial number 6 of the Twelfth Schedule to the Constitution which reads as - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 a facility provided to citizens covered under that serial ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rporations (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 / Put ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e control or management of a municipal or local fund; (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 Mu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nimals. 16.Vital statistics including registration of births and deaths. 17.Public amenities including street lighting, parking lots, bus stops and 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 t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of conferences, seminars and for Government functions etc. Examples of such auditoriums in Bengaluru are Town Halls, Ravindra Kalakshetra, Ambedkar Bhavan, etc. Thus Consultancy services for Construction, supervision, project management and Quality Control for Renovation of Auditorium is related to Provision of Urban Amenities under serial number 12 of the Twelfth Schedule to the Constitution of India. 6. Consultancy Services for Project management and quality assurance for the work of Rejuvenation 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 BB ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for development of civil work is concerned, such civil works are taken up for urban planning including town planning. Since the said civil work is taken up in Sindhanur Town Municipal limits. which is a local body, it falls under serial number 1( Urban planning including town planning ) of the Twelfth Schedule. 18. Thus from the above, it is seen that the services provided by the applicant are pure services, provided to the Local bodies and to the State Government Departments and are related to the functions entrusted under article 243W of the Constitution. However applicant has submitted only the work order issued by the BBMP and Department of Forestry and letter of acceptance filed by the applicant. The applicant has not submitted the copies of the agreements either entered with BBMP 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. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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