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TMI Blog2021 (3) TMI 708X X X X Extracts X X X X X X X X Extracts X X X X ..... een established as a state level nodal agency, under the department for Urban Employment and Poverty Alleviation by Uttar Pradesh Government. This agency is registered under the Registration of Societies Act since 20th November 1990 - Further, as per website of Pradhan Mantri Awas Yojana-Housing for All (Urban), Ministry of Housing and Urban Affairs, the PMAY is a Scheme to provide central assistance to Urban Local Bodies (ULBs) and other implementing agencies through States/UTs for Rehabilitation of existing slum dwellers using their land as a resource through private, participation, and affordable Housing in Partnership. Thus, the Consultancy services rendered under the contract with State Urban Development Agency, Uttar Pradesh (SUDA), and for PMAY are in relation to functions entrusted to Municipalities under Article 243W and to Panchayats under Article 243G of the Constitution of India. Whether such services provided would qualify as Pure services (excluding works contract service or other composite supplies involving supply of any goods) as provided in serial number 3 of Notification No. 12/2017- Central Tax (Rate) dated 28 June, 2017, as amended? - HELD THAT:- The services m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Amar Saheed Path, Lucknow, Uttar Pradesh- 226 002 (here in after called the applicant) is a registered assessee under GST having GSTN: 09ABGFM6137K1ZV. 2) The Applicant has informed that State Urban Development Authority (SUDA in short), Lucknow has entered into an agreement with M/s. Creative Consortium, and M/s. Rudrabhishek Enterprises Limited (herein after referred as main contractors) for "Preparation of Detailed Project Report" and providing "Project Management Consultancy Service" under Pradhan Mantri Awas Yojna (PMAY in short). The above two parties made an agreement and awarded, back to back, same work to the applicant. 3) Accordingly, the Applicant has submitted application for Advance Ruling dated 02.06.2020 enclosing duly filled Form ARA-Ol(the application form for Advance Ruling) along with certain annexure and attachments and sought Advance Ruling as follows : i. Whether the Project Development Service (i.e. Detailed Project Report Service) and Project Management Consultancy services ('PMCS') provided by the applicant to the recipient under the Contract from State Urban Development Authority (herein after referred as "SUDA") and the Project Management Consultancy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned that the cost of Composite Supply of Goods and Services in which the value of supply of goods constitutes not more than 25 percent of the value of the said composite supply provided to any Government. c. As per records available no proceeding in the applicant's case on the question raised in the application under any provisions of the CGST Act, is pending for decision. 7). The applicant was granted a personal hearing in the matter. In compliance, Sh. Narendra Kumar, Chartered Accountant, Authorized representative, appeared on 26.06.2020 for hearing on behalf of the applicant. During the personal hearing he reiterated the submissions already made vide application dated 2nd June 2020, submitted a write submission that:- i. SUDA Lucknow has entered into an agreement with the main contractors for "Preparation of Detailed Project Report" and providing "Project Management Consultancy Service" under PMAY in various districts of Uttar Pradesh. ii. The main contractors made an agreement and awarded, back to back, same work to the applicant. iii. The applicant is not involved in any other activities other than aforesaid agreement for preparation of DPR and providing Project Mana ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ia, and if so, whether such services provided by the main contractors would qualify as Pure services accordingly exempt from the payment of GST duly covered in Sl. No 3 of Notification No. 12/2017-Central Tax (Rate), dated 28th June, 2017 (as amended from time to time). ii. Whether the said service provided by the sub-contractor to the main contractor would also be exempt from payment of GST in terms of Notification No. 12/2017-Centra1 Tax (Rate). 11). Now coming to the first question i.e. whether the Project Development Service (i.e. Detailed Project Report Service) and Project Management Consultancy services ('PMCS') provided under the Contract for SUDA and the Project Management Consultancy services ('PMC') under the contract for PMAY would qualify as an activity in relation to function entrusted to Panchayat or Municipality under Article 243G or Article 243W respectively, of the Constitution of India or not. To proceed further, we need to examine the purpose and scope of work for which the main contractors have gone into contract with SUDA and PMAY. 12). SUDA has been established as a state level nodal agency, under the department for Urban Employment and Poverty Alleviatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er consultations. * Preparation of beneficiaries wise detailed Architectural/ Engineering designs. Drawing and estimates for all sizes of plots, project structuring under appropriate development and funding mechanism. * Assistance in obtaining appropriate approvals from concerned agencies/ departments. * Appropriating all necessary data in reference to Slum Free city Plan in the DPR. * The DPR should be complete in all respect with all report drawings, statements and documents necessary for obtaining the grant from the Government of India. B. Scope of Work under Proiect Management Consultancy (PMC):- * PMC will coordinate, execute and monitor the activities leading to the construction of approved DUS (Dwelling units) by Govt. of India. * All the activities till the completion of DUS will be taken care of by PMC. PMC shall also administer the works by the beneficiaries and ensure that the agreement between the ULBs and beneficiaries whether related to quality or quantities of work are executed in accordance with its provisions. * PMC shall attach Beneficiaries to the project in PMAY-MIS and also upload Annexure 7A & 7 C. * PMC shall execute all MIS related work of P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5). Accordingly, in view of forgoing discussions we are of the view that the Consultancy services rendered under the contract with State Urban Development Agency, Uttar Pradesh (SUDA), and for PMAY are in relation to functions entrusted to Municipalities under Article 243W and to Panchayats under Article 243G of the Constitution of India. 16). Now coming to second part of the first question for consideration before us is a corollary to the first part in case the answer to first part is in affirmative. Since we have already made our findings in affirmative as far as first question is concerned, we now move to examine as to whether such services provided would qualify as "Pure services (excluding works contract service or other composite supplies involving supply of any goods)" as provided in serial number 3 of Notification No. 12/2017- Central Tax (Rate) dated 28 June, 2017, as amended (S. No. 3A) by Notification No. 2/2018- Central Tax (Rate) dated 25 January, 2018 issued under Central Goods and Services Tax Act, 2017 ('CGST') and corresponding Notifications No. - KA.N.I.-2-843/X1- 9 (47) / 17-UP. Act-1 - 2017 - Order - (10) - 2017 Lucknow, dated June 30, 2017 issued under Uttar P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he exemption are:- a. It should be a pure service (excluding works contract service or other composite supplies involving supply of any goods). b. Provided to the Central Government, State Government or Union Territory or Local Authority or a Governmental Authority, c. 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. 20). From perusal of entry no. 03 of the Notification No. 12/2017, we observe that service should be pure service, supplied to specific class of recipient and should be in relation to any function entrusted to panchayat or municipality under article 243G or 243W of the constitution. Accordingly we are of the opinion that the service of providing "Preparation of Detailed Project Report (DPR)" and providing "Project Management Consultancy Service (PMC)" under Pradhan Mantri Awas Yojna, by the applicant, in terms of contract entered between main-contractor and SUDA and sub letting of same contract by the main contractor to the applicant, is exempt from GST. 21). We also observe that similar views have ..... X X X X Extracts X X X X X X X X Extracts X X X X
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