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TMI Blog2020 (1) TMI 1428X X X X Extracts X X X X X X X X Extracts X X X X ..... ot - exemption 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 - HELD THAT:- The services mentioned in the contract would qualify as Pure Service (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 Pradesh Goods and Service Tax Act, 2017 (UPGST Act), where the Project cost includes the cost of service rendered along with reimbursement of cost of procurement of goods for rendering such service, and, thus, be eligible for exemption from levy of CGST and UPGST, respectively. X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, 2017 ('UPGST Act'), where the Project cost includes the cost of service rendered along with reimbursement of cost of procurement of goods for rendering such service, and, thus, be eligible for exemption from levy of CGST and UPGST, respectively. 5). The applicant further submitted that from the nature of work mentioned above, the services rendered by the applicant under the contract assigned to him by SUDA Uttar Pradesh for PMAY are in relation to functions entrusted to Muncipalities under Article 243W and to Panchayats under Article 243G of the Constitution of India, thus eligible for exemption from levy of CGST and SGST. They further submitted that in similar matter, full exemption was granted to M/s. Rudhrabhishek Enterprises Ltd, Noida, Uttar Pradesh, by Authority For Advance Ruling Uttar Pradesh, vide Order No. 22 dated 25.01.2019. 6). The application for advance ruling was forwarded to the Jurisdictional GST Officer to offer their comments/ views/ verification report, which was received in this vide his letter C. No. V(30)Tech/Alld-I/Ad.Rul./Hi-Tech/38/2019/ 1726 dated 30.12.2019 wherein it was reported that "M/s. Deepak Kumar Nigam (Hi tech Builder, Banda) has been a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for Urban Employment and Poverty Alleviation by UP Govt. The mission PMAY is being implemented through SUDA and nature of work qualify the functions listed in schedule 11 and 12 of Indian Constitution under Art. 243G and 243W. DISCUSSION AND FINDING 8). At the outset, we would like to make it clear that the provisions of both the CGST Act and the UPGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the UPGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST Act / UPGST Act would be mentioned as being under the 'CGST Act'. 9). We have gone through the submissions made by the applicant and have examined the explanation submitted by them. At the outset, we find that the issue raised in the application is squarely covered under Section 97(2)(b) of the CGST Act 2017 being a matter related to applicability of a notification issued under the provisions of this Act. We therefore, admit the application for consideration on merits. 10). We h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... et up or establish any specific service such as training facilities, infrastructural etc. in furtherance of the economic interest of the urban poor. 13). 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. Furthermore, the matters listed in the 11th and 12th schedule to the constitution (details 243G and 243W, respectively), as functions pertaining to Panchayats/Municipality, are inter alia: (a) Safe water for drinking, (b) Maintenance of community assets, (c) Family welfare, (d) Markets and Fairs, (e) Poverty Alleviation Programmes, (f) Regulation of land use and construction of land buildings, (g) Urban planning including the town planning, (h) Planning for economic and social development, (i) Urban poverty alleviation, (j) Slum improvement and up-gradation. 14). Now, we come to examine the scope of work under d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... omplete as per the agreement made with the beneficiaries for the successful and timely implementation of the Project. * PMC will implement GEO tagging of constructions of all the stages. Time extension will not be considered except in very exceptional cases without prejudice to levy of penalties. However any approval for extension of time of completion of the works stipulated in the construction, beneficiaries will be without any additional financial implication. PMC shall be fully responsible for quality control and shall put in place such measures as are essential for ensuring regular on site quality check. * PMC shall submit the tentative organization chart for managing the project so that appropriate decisions are taken quickly. However, the actual number of technical and financial personnel to be deployed and the deployment schedule shall be prepared by the PMC and manually agreed upon after award of work. * Generate and submit to the ULBs time to time progress reports in the agreed formats and the agreed frequency. * PMC shall also apprise the beneficiaries of the progress or activities of the project on fortnightly/ monthly basis. * Cash flow Chart -Actual and Sche ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mber 3 of Notification No. 12/2017- Central Tax (Rate) dated 28 June, 2017, as arnended (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-I - 2017 - Order (10) - 2017 Lucknow, dated June 30, 2017 issued under Uttar Pradesh Goods and Service Tax Act, 2017 ('UPGST Act'), where the Project cost includes the cost of service rendered along with reimbursement of cost of procurement of goods for rendering such service, and, thus, be eligible for exemption from levy of CGST and UPGST, respectively. In view of the above, both the members unanimously rule as under; RULING Question 1. We hold that the Consultancy services rendered by the applicant 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. Question 2. The Services being rendered by the applicant qualify as Pure Service (excluding works contract service or other composite supplies invol ..... X X X X Extracts X X X X X X X X Extracts X X X X
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