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TMI Blog2021 (12) TMI 215X X X X Extracts X X X X X X X X Extracts X X X X ..... ction entrusted to a Municipality under article 243W of the Constitution are exempt from tax - SUDA has been established as a state level nodal agency, under the department for Urban Employment and Poverty Alleviation by Uttar Pradesh Government. The Consultancy services rendered by the Applicant under the contract with SUDA, and for PMAY are in relation to functions entrusted to Municipalities / Panchayats under Article 243W / 243G of the Constitution of India. Pure services or not - 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 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). - UP ADRG 81/2021 - - - Dated:- 30-6-2021 - SHRI ABHISHEK CHAUHAN AND SHRI VIVEK ARYA, MEMBER Represented by: Shri Dharmendra Kumar (CA Authorized ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Beneficiary Led Construction in Lucknow cluster under Pradhan Mantri Awas Yojana (Urban). 6) The applicant in their application of advance ruling has further submitted as under:- (i) State Urban Development Agency (SUDA) was formed and registered under Societies Registration Act, since 20-11-1990. (ii) SUDA was established by U.P. Government with hundred per cent participation by way of equity or control, to carry out any function entrusted to a municipality under article 243W of the Constitution. (iii) Functions entrusted to Panchayats as laid down under section 243G of the Constitution of India are mentioned as follows: Subject to the provisions of this Constitution, the Legislature of a State may, by law, endow the Panchayats 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 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f activity (Pradhan Mantri Awas Yozna) in relation to function entrusted to a Panchayat under article 243G of the Constitution or relation to function entrusted to a Municipality under article 243W of the Constitution. (viii) Applicant is providing aforesaid services by way of an agreement for additional work of preparation of Detailed Project Report (DPR) and providing Project Management Consultancy (PMC) services for Projects under Beneficiary Led Construction in Lucknow Cluster under Pradhan Mantri Awas Yozna (Urban). (ix) Applicant is of the opinion that its services provided to SUDA by way of an agreement for additional work of preparation-of Detailed Project Report (DPR) and providing Project Management Consultancy (PMC) services for Projects under Beneficiary Led Construction in Lucknow Cluster under Pradhan Mantri Awas Yozna (Urban) falls under serial no.3 of Table of notification no.12/2017-Central Tax (Rate), dated 28-06-2017and GST rate on such services is Nil. (x) In the light of aforesaid facts, services of applicant in question should be exempt from GST under serial no. 3 of notification no.12/ 2017-Central Tax (Rate), dated 28-06-2017. (xi) Hon bl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t, 2017 (CGST) and corresponding Notification No. KA.NI.-2-843/XI-9 (47)/17-UP.Act-1-2017-Order-(10)-2017 Lucknow, dated 30 June, 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 services and thus, be eligible for exemption from levy of CGST and UPGST, respectively? 12) We observe that as per Sl. No. 3 of Notification No. 12/2017-CT (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 243W of the Constitution are exempt from tax. 13) We observe that SUDA has been established as a state level nodal agency, under the department for Urban Employment and Poverty Alleviation by Uttar Pradesh Government. As per the Memorandum of Associa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ), 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. As per the details available on website SUDA is the state level nodal agency for PMAY(U) in the state of Uttar Pradesh. 17) Now coming to the functions entrusted to Panchayats/Municipalities, the matters listed in the 11th and 12th schedule to the constitution (details 243G and 243W, respectively), 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 etc. Further as per the preface to the PMAY, Housing for All (Urban) Scheme Guidelines:- The Mission seeks to address the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ries and ensure that the agreement between the ULBs and Beneficiaries whether related to quality or quantities of works are executed in accordance with its provisions. ■ PMC shall attach Beneficiaries to the project in PMAYMIS and also upload Annexure 7C/7D/7E. ■ PMC shall execute all MIS related work of PMAY (U). ■ PMC will supervise the construction work to ensure adherence to the drawings, prescribed high standards of quality and timely completion of the project and verify and certify the progress of the work. ■ Preparation of Physical and Financial progress and shall submit to respective ULBs and DUDA ■ Preparation of individual files consist of application, copy of Aadhar card, bank details, land documents, consent letters etc, stage wise photographs for every beneficiaries. ■ PMC will assist Beneficiaries at various stages such as Plinth Level, Lintel Level, roof level and final finishing works and assist to get timely installments. ■ PMC will make sure that the project / DUs construction must complete as per the agreement made with the beneficiaries for the successful and timely implementation of th ..... 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