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TMI Blog2021 (8) TMI 142X X X X Extracts X X X X X X X X Extracts X X X X ..... ng sought relates to the classification/taxability of such supply received by them - the expression, 'unless the context otherwise requires' read with S. 9 (3) provides for admission of application from service recipients in cases where the question relates to determination of the liability to pay tax on any goods or services. Whether the entry provided under Sl.No.3/3A of the N/N.12/2017-Central Tax (Rate) dt. 28.06.2017 is available? - HELD THAT:- Ruling can be sought by recipient of a supply, who are made liable to pay tax under Section 9(3) only with regard to determination of their liability to pay or not and such recipients cannot seek ruling on the applicability of an exemption notification/preferential rates on such supplies received by them - the question is not admissible and not admitted. Whether IIMT is a Government entity under the GST law? - HELD THAT:- The applicant institute was originally established in the year 2011 as a society registered with the Registrar of Societies, Tamilnadu under the auspices of the Ministry of Human Resources Development with the Chairman to be appointed by the Central Government, two representatives including a financia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under RCM on the legal fees paid by them. Online education journals and periodicals provided to the applicant by the person located in non-taxable area - HELD THAT:- The applicant is found liable to pay tax under Section 9(3) of the Act in respect of legal services availed by them based on the documentary evidences submitted by them. - TN/20/AAR/2021 - - - Dated:- 18-6-2021 - THIRU. SENTHILVELAVAN B., I.R.S AND THIRU. KURINJISELVAAN V.S., M.SC., (AGRI.), M.B.A., MEMBER Note: Any appeal against the Advance Ruling order shall be filed before the Tamil Nadu State Appellate Authority for Advance Ruling, Chennai under Sub-section (1) of Section 100 of CGST ACT/TNGST Act 2017 within 30 days from the date on which the ruling sought to be appealed against is communicated. At the outset, we would like to make it clear that the provisions of both the Central Goods and Service Tax Act and the Tamil Nadu Goods and Service Tax Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Service Tax Act would also mean a reference to the same provisions under the Tamil Nadu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... training, conducting industrial and management research etc. The institute was established under the auspices of the Ministry of Human Resources Development (MHRD), Government of India as a premier educational institution and is renowned in India for its management education programmes. They were registered as a society with the Registrar of Societies, Tamilnadu and is recognized world over as an institution of higher learning and seat of academic excellence in the field of management. The Indian Institute of Management Act, 2017 was passed and it received the assent of the President on 31st December, 2017 with an objective to declare certain institutes of Management (IIMT is one among the schedule annexed to the Act) to be Institutions of National Importance with a view to empower these Institutions to attain global excellence in management, management research and allied areas of knowledge and to provide certain other matters connected therewith or incidental thereto. The Government of India notified the Act in the Gazette of India on 31st January 2018. Now by the enactment of the Indian Institute of Management Act 2017, IIMT is a body corporate as per Section 4 of the said Act. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be audited by the Comptroller and Auditor General of India. (5) The accounts of every Institute as certified by the Comptroller and Auditor-General of India or any other person appointed by him in this behalf together with the audit report thereon shall be forwarded annually to the Central Government and that Government shall cause the same to be laid before each House of Parliament in accordance with such procedure as may be laid down by the Central Government. 2.3 In view of the aforementioned facts, the applicant is of the view that they are a Government entity as defined under Notification 12/2017 CT (Rate) dated 28.06.2017 and the service received by them by way of pure labour service and composite service shall be covered by Serial No 3 3A of Notfn.12/2017 and Serial No.3(vi) of Notification no.11/2017 CT(Rate) dated 28.06.2017. They have also stated that being a Government entity they will be governed by TDS provisions as per Section 51 of CGST Act 2017 and they are entitled for exemption under Sl.No.3 3A of Notification 12/2017 as they are rendering educational services which is covered under Twelfth Schedule under Article 243W as well as in Eleventh Schedule ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... envisaged for which applicability under Section 9 (3)/9(4) and applicability of Sl.no.3/3A, which was asked to be furnished during the hearing and not submitted till that date. In reply the applicant vide their letter received on 09.12.2020, submitted as below:- 1) Enclosing herewith the Indian Institute of Management Act of 2017. 2) Works Contract service. a. The tender for construction of buildings are issued by CPWD on behalf of Indian Institute of Management, Trichy and the amount payable for the construction will be paid by them to CPWD 3) S.No.3 and 3A of Notification No. 12/2017 is applicable to them as said below: SI.No. Description Remarks 1. They are availing services in nature of Pure services such as labour contract for maintenance of building and plant and machinery. They also pay for services in nature of man power supply and security services. Sl. No. 3 of the Exemption Notification No: 12/2017 is applicable to the supply. Currently they are paying GST on the above services. 2. The co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the documents submitted, Applicant was again addressed vide letter dt.25.02.2021 by the Registry asking for details of service providers both registered and unregistered along with GSTIN Number for registered providers and they were informed that the question no.3 on eligibility of Sl.No.3/3A of Notification no. 12/2017-C.T (Rate) dt. 28.06.2017 was not admissible as they are the service recipient and advance ruling cannot be sought in their capacity as service recipients. They were offered an opportunity to file their remarks on the admissibility of the said question with the list of service providers within 7 days. In reply to the said letter, applicant has submitted that they, as service receivers are liable to pay tax on Reverse charge Mechanism and hence they should be treated as suppliers of goods undertaken or proposed to be undertaken for the purpose of ruling under Section95A and their application for ruling on Sl.No.3/3A of the said notification should be admitted. 4.1. The state jurisdictional authority, who has the administrative jurisdiction over the applicant, has forwarded his comments on the questions that the applicant is: (i) Set up by an Act o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plicant is covered by Serial No.3 (vi) of Notification 11/2017 dated 28th June 2017. 7.1 Prima facie, the admissibility of the application before this authority, under Section 95/97(2) of the GST Act is taken up. Applicant in their application has stated that they are recipient of service. Further, they have stated that the liability to pay tax is fastened on them under 'Reverse Charge' vide notification issued under Section 9(3) of the GST Act vide their letter dated 25.03.2021 and Section 9(4) is not applicable to them vide their letter dt.09.12.2020. They have submitted that they are receiving services such as security and Legal services on which tax becomes payable on reverse charge. Hence in cases the liability to pay the tax to the exchequer is fastened on them, they become the tax payer and claimed that the questions raised are admissible for extending the ruling sought for. 7.2 The relevant legal provisions are discussed as under:- Section9(3) of the GST Act: The Government may, on the recommendations of the Council, by notification, specify categories of supply of goods or services or both, the tax on which shall be paid on reverse charge basis by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with regard to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant. Thus, advance ruling cannot be sought by a person who is a recipient of the supply of goods or services, when the ruling sought relates to the classification/taxability of such supply received by them. However, the expression, 'unless the context otherwise requires' read with S. 9 (3) provides for admission of application from service recipients in cases where the question relates to determination of the liability to pay tax on any goods or services. 7.3 In this case, the ruling is sought on the issues relating to Whether they are 'Government entity' and therefore liable to deduct tax on the supplies received by them as notified, vide Notification No.50/2018 dt. 13.09.2018 as a TDS authority (Q.1 2.1); Whether they are required to pay tax under 'Reverse Charge Mechanism' as notified under the provisions of Section 9(3) of the Act (2.2). and hence the application is admissible with respect to these two questions. The applicant vide their letter dated 09.12.2020 has stated that Section 9(4) of the Act is not applicable t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to determination of their liability to pay or not and such recipients cannot seek ruling on the applicability of an exemption notification/preferential rates on such supplies received by them. Therefore, the Question 2.3 is not admissible and not admitted. 8.1 Applicant has sought ruling whether IIMT is a Government entity under the GST law. They have submitted that they are a Government entity in as much the Indian Institute of Management is an educational institution originally registered as a society with the Registrar of Societies in the year 2011. The Indian Institute of Management Act,2017 was passed with an objective to declare certain institutes of management to be institutions of national importance and now IIMT is a body corporate as per Section 4 of the said Act.; that IIMT is under the direct supervision and control of the Ministry of Human Resources Development of India; that the corpus fund of the institute(Akin to share capital in case of the body corporate) was initially provided by the Government of India by way of Grants and it is stipulated in the Act that every institute shall maintain a fund to which shall be credited all moneys provided by the central Gover ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Section 51: the Government may mandate (a) a department or establishment of the Central Government or State Government; or (b) local authority; or (c) Governmental agencies; or (d) such persons or category of persons as may be notified by the Government on the recommendations of the Council, to deduct tax at the rate of one per cent on account of CGST and one percent on account of SGST from the payment made or credited to the supplier where the total value of the supply under a contract exceeds two lakh and fifty thousand rupees (excluding tax payable under the GST Acts). Notification no.50/2018 dt. 13.09.2018 was issued to include (a) 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 fifty-one per cent or more participation by way of equity or control, to carry out any function. From these provisions, it is observed that the applicant being a body set up by an Act of Parliament with more than 51% participation by way of funding, is liable to deduct TDS from their suppliers under Section5l of the said Act read with Notification No. 50/2018 dat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... NTR10000426/20 DT.05.10.2020 raised by M/s. Security Intelligence Services India Ltd bearing GSTIN No.33AAECS3538A1ZU. From the invoices submitted by them, it is seen that the service provider is a registered Private Limited company and so the tax liability will vest on the service provider only in such cases. Further, the applicant has not submitted the list of all the service providers along with their constitution as called for during the hearing and thereafter. Thus, the applicant has not furnished any other documentary evidence to the effect that security services are provided to them by any other person other than a body corporate. Hence in respect of security services being received from a body corporate the applicant is found not to be liable under RCM to pay tax as per the documentary evidences submitted by them. 8.4 In respect of legal services received by them, the provisions of Notification no.13/2017 cited supra are as follows:- Sl.No. Category of Supply of Services Supplier of service Recipient of Service 2 Services provided by an individual a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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