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TMI Blog2021 (8) TMI 187X X X X Extracts X X X X X X X X Extracts X X X X ..... ation to supply of such goods or services or both' and the provisions of 'Advance Ruling' is applicable to an applicant only with regard to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant - 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 Section 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. The applicant institute was originally established in the year 1964 as a society registered with the Registrar of Societies, Tamilnadu under the auspices of the Ministry of Human Resources Development with the Minister of HRD being the Chairman, Board members will be Education Secretary of Ministry of HRD, Principal Advisor, Planning commission, Secretary, Chairman, UGC, Department of Science Technology. Director General of CSIR will be the educational advisor and financial ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d 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 Goods and Service Tax Act. M/s. National Institute of Technology, Tiruchirappalli-620015 (hereinafter called the Applicant/ NITT) are registered under GST with GSTIN.33AAACZ8255D1ZD. The applicant has sought Advance Ruling on the following questions: 1. Whether National Institute of Technology, Tiruchirappalli (NITT) is a Government Entity under GST Law. 2. If the answer to question is in the affirmative, whether a. The applicant is liable to deduct tax at source (TDS) under Section 51 of the CGST Act, 2017. b. Whether the applicant is required to discharge Liability on reverse charge basis on supply of services as per Section 9 (3) and 9 (4) of the CGST Act, 2017. 3. Whether the entry provided under A. Sl.No. 3, 3A of Notification 12/2017 is applicable to them. B. Composite supply of works contract provided to the applicant is covered by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or more persons to review the work and progress of any institute and to hold inquiries into the affairs thereof and to report thereon in such manner as the Visitor may direct. (3) Upon receipt of any such report, the Visitor may take such action and issue such directions as he considers necessary un respect of any of the matters dealt with in the report and the Institute shall be bound to comply with such directions within reasonable time. Further clause 11 of the Act mandates that the chairperson of the Board of Governors is to be nominated by the Visitor. 20. For the purpose of enabling the Institutes to discharge their functions efficiently under this Act, the Central Government may, after due appropriation made by Parliament by law in this behalf, pay to every Institute such sums of money in such manner as it may think fit. 21 (1). Every Institute shall maintain a Fund to which shall be credited- (a) all moneys provided by the Central Government; (b) all fees and other charges received by the Institute; (2) All moneys credited to the fund of every Institute shall be deposited in such banks or invested in such manner as the Institute may, with the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng for the admission of application was held on 06.08.2020. The authorized representative, Shri. V. Ramkumar appeared for the hearing and they applicant was asked to furnish the following; 1) NIT Act with relevance to NITT 2) Details of Board of Governors with equity on control and finance 3) Write up on the goods/services envisaged for which applicability under section 9 (3)/9(4) and applicability of s.no.3/3A. 4) Write up on the pure labour service and composite services likely to be undertaken for which the clarification has been sought. It was also decided that on receipt of above another hearing may be extended. 3.2 In furtherance to the above hearing, the applicant vide their letter dated 13.09.2020 submitted the following: Copy of National Institute of Technology act of 2017. The applicant has stated the following: i. In respect of works contract for National Institute of Technology, the tenders for construction are issued by CPWD and the amount payable for the construction is issued by CPWD and the amount payable for the construction will be paid by us to CPWD. The contractor who executes the work will claim GST on the taxable va ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4. In respect of legal fees paid to advocates we are liable to pay GST under reverse charge mechanism via S. NO. 2 of Notification No. 13/2017. This is covered U/s. (3) 5. In respect of online education journals and periodicals provided to educational institution by the person located in non-taxable we are exempted from payment of IGST for this imports in terms of SL. No. 10 of the Notification No; 09/2017IT(R) dated 28/06/2017. Hence we are liable to pay IGST on online non education journals and periodicals imported under reverse charge mechanism. This is covered under Notification 10/2017. 6 Section 9(4) is not applicable to them 3.5 The Registry vide their letter dated 10.12.2020 issued a notice to the applicant seeking a detailed write up on scope of work, terms and conditions of work and payment, sample contracts /invoices. Further in respect of ruling sought under Section 9(3) of CGST Act 2017 the applicant was asked to furnish the details of security agencies/ service providers with their constit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... No; 13/2017 for the supplies specified in the notification. The supplies to Governmental Authority or Entity in relation to any function entrusted to Panchayat under Article 243G or in relation to any function entrusted to a Municipality under article 243W of the Constitution is to be decided by the Advance Ruling Authority. National Institute of Technology, Tiruchirappalli (NITT) is an educational institution providing education in branches of engineering, technology, management, education, sciences and arts and for the advancement of learning and dissemination of knowledge in such branches and for certain other matters connected with such institutions. For the query on applicability of Sl.No 3(Vi) of notification 11/2017 , the AAR may decide on the applicability of the above notification. 5. The Centre Jurisdictional officer informed that there are no proceedings pending against the applicant on the issue raised by the Advance Ruling Authority. 6. We have carefully examined the written submission arguments made by the applicant at the time of hearing, further submission and submission made by the respective jurisdictional authority. The applicant, National Ins ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... goods or services or both and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both. Section 95. Definitions of Advance Ruling.- In this Chapter, unless the context otherwise requires, (a) advance ruling means a decision provided by the Authority or the Appellate Authority to an applicant on matters or on questions specified in sub-section (2) of section 97 or sub-section (1) of section 100, in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant; Section 103: Applicability of advance ruling. (1) The advance ruling pronounced by the Authority or the Appellate Authority under this Chapter shall be binding only (a) on the applicant who had sought it in respect of any matter referred to in sub-section (2) of section 97 for advance ruling; (b) on the concerned officer or the jurisdictional officer in respect of the applicant. (2) The advance ruling referred to in sub-section (1) shall be binding unless the law, facts or circumstances supporting the original advanc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Question 2.2 is not taken up for consideration. 7.4 With regard to the admissibility of Q.2.3 above, Applicant has questioned as follows:- Whether the entry provided under SI.No.3/3A of the Notification no. 12/2017-Central Tax (Rate) dt. 28.06.2017 is available to them. Entry S1 No.3/3A is reproduced for reference: 3 - Chapter 99 - 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. 3A - Chapter 99 - 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 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the central Government; that their accounts be audited by the Comptroller Auditor General of India.; applicant has submitted copy of gazette no.34 dt.06.06.2007 publishing the National Institute of Technology Act,2007 . The term Government entity has been defined in Notification no.32/2017 - Central Tax (Rate) dt 13.10.2017 as follows: [(zfa) Government Entity 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 90per cent. 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. From the submissions of the applicant, it is noted that the applicant institute was originally established in the year 1964 as a society registered with the Registrar of Societies, Tamilnadu under the auspices of the Ministry of Human Resources Development with the Minister of HRD being the Chairman, Board members will be Education Secretary of Ministry of HRD, Principal Advisor, Planning commission, Secretary, Chairman, UGC, Department of Science ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation No. 50/2018 dated 13.09.2018. 8.3 Now we take up the question whether the applicant is liable to discharge tax on reverse charge basis on supply of services as per Section9 (3) of the CGST Act, 2017. Legal provisions of Section9(3) is as under:- 9(3) 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 recipient of such goods or services or both and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both. From the above provisions, it is found that the services/goods, as a class will be notified to be charged under RCM under Section 9 (3). In this regard, Notification no.13/2017 dt. 28.06.2017 is examined in respect of services received by the applicant namely, security and Legal services. The said notification provides as follows in respect of security services:- Sl.No. Category of Supply of Services Supplier of service Recipient ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... directly or indirectly. Explanation - Legal Service means any service provided in relation to advice, consultancy or assistance in any branch of law, in any manner and includes representational services before any court, tribunal or authority. An individual advocate including a senior advocate or firm of advocates Any business entity located in the taxable territory. As per the above provisions, any business entity is liable to pay tax under RCM on the legal fees paid to any individual advocate or a firm of advocates. Applicant has submitted copies of bills bearing nos.136 dt. 19.11.2020 and 570 dt.13.03.2020 for amounts of ₹ 39,766/- and ₹ 1,50,000/- respectively for the services received from Shri.K. Srinivas Murthy, Advocate and Shri. G. Rajagopalan, Additional Solicitor General-India. As per the above provisions, the applicant is found to be liable to pay tax under RCM on the legal fees paid by them. 8.5 In respect of online educational journals and periodicals provided to the applicant by the person located in non-taxable area, they had claimed that they were exempted from payment of IGST and that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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