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TMI Blog2021 (11) TMI 391X X X X Extracts X X X X X X X X Extracts X X X X ..... bject to the condition that the Boards and/or Corporations to which the applicant is providing the above said services qualify to be a 'Governmental Authority' or 'Government Entity' in terms of the definitions at (zf) and (zfa) respectively of the Notification No.12/2017-Central Tax (Rate) dated 28.06.2017, as amended. The applicant is providing services by way of producing documentary videos, picture of testimony to various State Government Departments, Local Authorities, Boards and Corporations. But these services are not provided 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. Hence provision of such services is liable to tax at 18%. - KAR ADRG 58/2021 - - - Dated:- 29-10-2021 - DR. M.P. RAVI PRASAD AND SRI. T. KIRAN REDDY, MEMBER Represented by : Sri B. Srinivas Chartered Accountants ORDER UNDER SECTION 98(4) OF THE CGST ACT, 2017 UNDER SECTION 98(4) OF THE KGST ACT, 2017 Sri T. Basavaraj, Proprietor of M/s. Star Creative, # 202, 2nd Floor, 6 th Main, 7th Cross, KGE Layout, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me, Agricultural Technology Management Agency (ATMA) Scheme, Watershed Development Program (NWDPRA), Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) and other Central and State Government Schemes. 6. Applicant's Interpretation of Law: 6.1 The applicant states that as per entry No.3 of Notification No.12/2017 CGST Tax (Rate) dated 28.06.2017. 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 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 243 W of the Constitution. The services rendered to the Government, Panchayat and Municipality is fully exempt from tax . 6.2 The applicant states that documentaries are made on various schemes that are introduced by Central Government and / or State Government for the benefit of general public and in order to reach the public at large. These documentaries are made for documenting the beneficiaries and to bring awarene ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to any function entrusted to a Municipality under article 243W of the Constitution. 10.2 From the above said entry of the notification it is observed that, in order to claim exemption on supply of service of producing documentary videos, two conditions should be satisfied: 1. Pure Services (excluding works contract service or other composite supplies involving any goods) provided to the Central Government, State Government or Union territory or local authority or a Governmental authority or a Government entity 2. 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. Now we examine whether the applicant satisfies the above two conditions to claim exemption under the said notification. 10.3 The applicant has stated that they are providing services to various State/Central Government Departments, Local Authorities and various Boards and corporations. The applicant has not specified to which Boards and corporations they are providing the service of producing documentary videos. Since the applicant is provid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... activities. 22. Markets and fairs. 23. Health and sanitation, including hospitals, primary health centres and dispensaries. 24. Family welfare. 25. Women and child development. 26. Social welfare, including welfare of the handicapped and mentally retarded. 27. Welfare of the weaker sections, and in particular, of the Scheduled Castes and the Scheduled Tribes. 28. Public distribution system. 29. Maintenance of community assets. 10.5 243W. Powers, authority and responsibilities of Municipalities, etc Subject to the provisions of this Constitution, the Legislature of a State may, by law, endow (a) the Municipalities with such powers and authority as 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 Municipalities, subject to such conditions as may be specified therein, with respect to (i) the preparation of plans for economic development and social justice; (ii) the performance of functions and the implementation of schemes as may be entrusted to them including those in relation to the matters listed in the T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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