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TMI Blog2019 (10) TMI 1389X X X X Extracts X X X X X X X X Extracts X X X X ..... hereby the works contract services and composite supplies involving supply of any goods are excluded from pure services - The engineering consultancy services which involve preparation of detailed project report, city development plans, designs and drawings and supervision thereof, for projects in different parts of the country for construction of Roads and Bridges, Solid Waste Management, Water Supply and Sanitation, Urban Development, Buildings and Environment offered by the applicant does not involve any supply of goods and such it is a pure service . Government Entity , as per Section 2(zfa) of the Notification No. 12/2017- Central Tax (Rate) dated 28.06.2017, 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 90%. or more participation by way of equity or control, to carry out a function entrusted by the Central Government, State Government, Union Territory or a Local Authority. - The Public Works Department, Haryana is a Department of the State Government, established by the State Government, with the state having full control ov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... artment, Gurgaon as per Request for Proposal (RFP) are Pure Services qualifying for exemption from levy of CGST and SGST, as notified in serial number 3 of Notification No. 12 of 2017- Central Tax (Rate) dated 28.06.2017 issued under Central Goods and Services Tax Act, 2017 (CGST Act, 2017) and corresponding notifications issued under Haryana Goods and Services Tax Act, 2017 (HGST Act, 2017)? (iii) If the answer to Question No. (ii) above is negative, whether, the Applicant is within its rights under the CGST and HGST Acts for charging GST to the Service Recipient on the service value for the services provided as per RFP (Annexure 1)? 2. Applicant's submission: 2.1 The Applicant is a foreign company engaged in providing independent engineering consultancy services which includes preparation of detailed project report, city development plans, designs and drawings and supervision thereof, for projects in different parts of the country for construction of Roads and Bridges, Solid Waste Management, Water Supply and Sanitation, Urban Development, Buildings and Environment. 2.2 In order to provide the above services, the company submits its expression of interest i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 3.2 For the applicability of the above mentioned entry, the following requirements need to be fulfilled: (i) The supply must be a case of supply of pure services excluding works contract service or other composite supplies involving supply of goods; (ii) Supply must be made either to Central Government or a State Government or Union Territory or a Local Authority or a Governmental Authority. (iii) The service so supplied must be in relation to any function entrusted to a Panchayat under Article 243G or entrusted to a Municipality under Article 243W. 3.3 All the three conditions need to be fulfilled to construe that a supply is covered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the Applicant would not fall within the functions entrusted to a Panchayat or a Municipality under Article 243G or 243W, respectively of the Constitution of India. Hence, third requirement is not fulfilled. 4. Discussion: 4.1 In order to decide the issue at hand, the following questions require clarity; (i) What is a pure service? (ii) Whether Public Works Department (PWD), Haryana is a Government Entity? (iii) Whether the pure services received by the PWD fall under Serial No. 3 of Notification No. 12/2017 Central Tax (rate) dated 28.06.2017? 4.1.1 Although Pure services have not been defined under the Goods and Services Tax Act, 2017, but it is meant to mean supply of services without involving any supply of goods. Entry No. 3 of Notification 12/2017- Central Tax (rate) dated 28.06.2017 lends weight to this definition, whereby the works contract services and composite supplies involving supply of any goods are excluded from pure services. The engineering consultancy services which involve preparation of detailed project report, city development plans, designs and drawings and supervision thereof, for projects in different parts of the country ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irrigation, water management and watershed development. (iv) Animal husbandry, dairying and poultry. (v) Fisheries. (vi) Social forestry and farm forestry. (vii) Minor forest produce. (viii) Small scale industries, including food processing industries. (ix) Khadi, village and cottage industries. (x) Rural housing. (xi) Drinking water. (xii) Fuel and fodder. (xiii) Roads, culverts, bridges, ferries, waterways and other means of communication. (xiv) Rural electrification, including distribution of electricity. (xv) Non-conventional energy sources. (xvi) Poverty alleviation programme. (xvii) Education, including primary and secondary schools. (xviii) Technical training and vocational education. (xix) Adult and non-formal education. (xx) Libraries. (xxi) Cultural activities. (xxii) Markets and fairs. (xxiii) Health and sanitation, including hospitals, primary health centres and dispensaries. (xxiv) Family welfare. (xxv) Women and child development. (xxvi) Social welfare, including welfare of the handicapped and mentally retarded. (xxvii) Welfare of the weaker secti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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