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TMI Blog2021 (8) TMI 145X X X X Extracts X X X X X X X X Extracts X X X X ..... n goods (whether as goods or in some other form) - the supply of services as pure services subject to the condition that the supply doesn t involve any supply of goods. The supply of services as undertaken by the applicant cannot be considered as any treatment or process on goods belonging to another registered person so as to qualify as job work as defined under clause (68) of section 2 of the Act ibid. Whether the said services are in relation to any functions entrusted to a Panchayat under article 243G or to a municipality under article 243W of the Constitution of India? - HELD THAT:- The functions entrusted to a Panchayat or to a municipality as listed in the Eleventh and/or Twelfth Schedule includes the functions like drinking water or water supply for domestic, industrial and commercial purposes - the services as provided by the applicant for operation of water pump and safeguarding pumping machinery at various Pump Houses in different districts for supply of drinking water is found to be a matter as listed in the Eleventh and/or Twelfth Schedule in relation to functions entrusted to a Panchayat under article 243G and/or to a municipality under article 243W of the C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s contain Drinking Water and Water supply for domestic, industrial and commercial purposes . 1.4 According to the applicant, the services provided by him is a pure service which does not involve any supply of goods. Further, such services is provided to local authority by way of any activity in relation to any function entrusted to a Panchayat under Article 243G of the Constitution of India or in relation to any function entrusted to a Municipality under Article 243W of Constitution of India and therefore the services is exempt from taxation vide entry serial number 3 of the Notification No. 1136 F.T. dated 28.06.2017, [corresponding central Notification No. 12/2017 - Central Tax (Rate) dated 28.06.2017], as amended from time to time. 1.5 Based on the aforesaid nature of supply, the applicant has sought advance ruling on issue as to whether the services provided by him is exempt from GST or not. In other words, whether the aforesaid supply of services shall get covered under entry serial number 3 of the Notification No. 1136 F.T. dated 28.06.2017. 1.6 The aforesaid question on which the advance ruling is sought for is found to be covered under clause (b) of sub-section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ices (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 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 4.2 So, to decide whether the services provided by the applicant are eligible for exemption under the aforesaid entry serial number or not, we need to ascertain following factors: (i) whether the instant supply of services can be treated as pure services; (ii) whether the applicant provides services to the Central Government, State Government or Union Territory or local authority or a Governmental authority; and (iii) whether the said services are in relation to any function entrusted to a Panchayat under article 243G or to a municipality under article 243W of the Constitution of India. 4.3 The term pure services has not been defined under the Act. However, a bare reading of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 243W of the Constitution of India. The functions entrusted to a Panchayat and to a municipality under article 243G and 243W of the Constitution along with eleventh and twelfth schedule are reproduced herein under: : 243G: Powers, authority and responsibilities of Panchayats.- Subject to the provisions of this Constitution the Legislature of a State may, by law, endow the Panchayats with such powers and authority and may be necessary to enable them to function as institutions of self government and such law may contain provisions for the devolution of powers and responsibilities upon Panchayats, at the appropriate level, subject to such conditions as may be specified therein, with respect to (a) the preparation of plans for economic development and social justice; (b) the implementation of schemes for economic development and social justice as may be entrusted to them including those in relation to the matters listed in the Eleventh Schedule Eleventh Schedule [Article 243G of the Constitution (Seventy-Third Amendment) Act, 1992]: 1. Agriculture, including agricultural extension. 2. Land improvement, implementation of land reforms, l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion (Seventy-Fourth Amendment) Act, 1992]: 1. Urban planning including town planning. 2. Planning of land-use and construction of buildings. 3. Planning for economic and social development. 4. Roads and bridges. 5. Water supply for domestic, industrial and commercial purposes. 6. Public health, sanitation conservancy and solid waste management. 7. Fire services. 8. Urban forestry, protection of the environment and promotion of ecological aspects. 9. Safeguarding the interests of weaker sections of society, including the handicapped and mentally retarded. 10. Slum improvement and upgradation. 11. Urban poverty alleviation. 12. Provision of urban amenities and facilities such as parks, gardens, playgrounds. 13. Promotion of cultural, educational and aesthetic aspects. 14. Burials and burial grounds; cremations, cremation grounds and electric crematoriums. 15. Cattie pounds; prevention of cruelty to animals. 16. Vital statistics including registration of births and deaths. 17. Public amenities including street lighting, parking lots, bus stops and public conveniences. 18. Regulat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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