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TMI Blog2021 (1) TMI 1196X X X X Extracts X X X X X X X X Extracts X X X X ..... s Act' since 20th November' 1990. As per the Memorandum of Association of State Urban Development Agency , its main objective shall be for betterment of urban population through comprehensive approach - SUDA is neither covered in the definition of Central Govt. nor State Govt. Moreover, SUDA is also not covered in Local Authority as the definition of local authority is very specific and means only those bodies which are mentioned as local authorities in clause (69) of section 2 of the CGST Act, 2017. The applicant has not submitted any relevant document to establish the coverage of services provided by them in particular functions entrusted to a municipality under the twelfth Schedule to Article 243W of the Constitution. The nature of services mentioned in the Work Order dated 16.01.2019 (attached by the applicant in the application of advance ruling on sample basis) i.e. preparation of DPR and Project Management Consultancy are not covered in the functions entrusted to a municipality under Article 243W of the Constitution. - UP ADRG 72/2021 - - - Dated:- 21-1-2021 - SHRI ABHISHEK CHAUHAN AND SHRI DINESH KUMAR VERMA, MEMBER Represented by : Shri Narendra K ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Gomtinagar Extension, Sahid Path, Near Dial 100, Lucknow and M/s Jayesh A Dalal, address Jalaram Shakti beside Dhavalgiri Apartments, Near Lourdes Convent School, Athwalines, Surat - 395007, Gujarat. The agreement is for- (1) Preparation of Detailed Project Report (DPR) for Ghaziabad NNULB (District - Ghaziabad) in Meerut Cluster No. 14 and providing Project Management Consultancy (PMC) for Project under Beneficiary Led Construction in 18 Clusters vide work order no. 1190/01/29/HFA/2018-19 dated 16/01/2019. The Client accepted the proposal submitted by M/s Jayesh A Dalal for DPR and PMC services for Beneficiary Led Construction (BLC) component of Pradhan Mantri Awas Yojana - Urban (PMAY-U). 6) GST exemption under Notification No. 12/2017-Central Tax (Rate) dated 28th June, 2017 Notification No. 2/2018-Central Tax (Rate) dated 25th January,2017 are as under:- Notification No. 12/2017 Central Tax (Rate) dated 28th June,2017: Table SI.No. Chapter, Section, Heading, Group or Service Code (Tariff) Description of Services Rate (per cent) Condition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... exempt in case of DPR and PMCs. They also submitted copy of Order No. 22 dated 25.01.2019, in the case of M/s. Rudhrabhishek Enterprises Ltd, Noida, Uttar Pradesh wherein full exemption was granted by the Authority for Advance Ruling Uttar Pradesh. 8) The application for advance ruling was forwarded to the Jurisdictional GST Officer (Assistant Commissioner, CGST CEX, Division-Firozabad) to offer his comments/views/verification report on the matter. The Assistant Commissioner, Central GST Central Excise, Division-Firozabad vide his letter C.No. V(30)11/Tech/Misc/FZD/2019/1289 dated 03.12.2020 has informed that as per provisions laid in Notification No. 12/2017 dated 28.06.2017, 02/2018 dated 25.01.2018 and order No. 22 dated 25.01.2019 of the Authority for Advance Ruling Uttar Pradesh, the activity of DPRS and PNICS services appears to be exempted. The Assistant Commissioner, Central GST Central Excise, Division-Firozabad has simply forwarded his views without discussing the facts leading to the said conclusion. 9) The applicant was granted a personal hearing in the matter. In compliance, Shri Narendra Kumar, Chartered Accountant Authorized representative, appeared on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t and corresponding Notification No.- KA.N.I.-2-843/X1- 9 (47) / 17-UP. Act-1 -2017 - Order - (10) 2017 Lucknow, dated June 30, 2017 issued by the State Government, Uttar Pradesh. 14) We find that Sl. No. 3 of the Notification No. 12/2017-CT (Rate) dated 28.06.2017 exempts 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. Similarly Sl no. 3A of the Notification No. 12/2017-CT (Rate) dated 28.06.2017 {inserted by notification no. 02/2018 CT (Rate) dated 25.01.2018} exempts Composite supply of goods and services in which the value of supply of goods constitutes not more than 25 per cent. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onstitution, shall be in a State the Governor, and in an Union Territory the Central Government. As per Article 154 of the Constitution, the executive power of the State shall be vested in the Governor and shall be exercised by him either directly or indirectly through officers subordinate to him in accordance with the Constitution. Further, as per article 166 of the Constitution, all executive actions of the Government of State shall be expressed to be taken in the name of Governor. Therefore, State Government means the Governor or the officers subordinate to him who exercise the executive powers of the State vested in the Governor and in the name of the Governor. Governmental Authority Governmental Authority means 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 90per cent. or more participation by way of equity or control, to carry out any function entrusted to a Municipality under Article 243 W of the Constitution or to a Panchayat under Article 243 G of the Constitution. Government Entity Government Entity means an authority or a board or any other body inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Parliament or a State Legislature; or (ii) established by any Government, with 90 per cent. or more participation by way of equity or control, to carry out any function entrusted to a Municipality under Article 243 W of the Constitution or to a Panchayat under Article 243 G of the Constitution; or (iii) established by any Government, with 90 per 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. The information available on the website of SUDA has also no mention of the same. So it is clear that the SUDA is not covered in the definition of Central Govt., State Govt., Local Authority, Governmental Authority and Govt. Entity as such the exemption contained in Sl.No. 3 3A of the Notification No. 12/2017-Central Tax (Rate) are not available to services provided to SUDA. 18) Further, as the name suggests, the SUDA i.e. State Urban Development Agency is engaged in Urban development as such the services provided to SUDA would not qualify as an activity in relation to function entrusted to Panchayat under article 243G of the Constitution as the Pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the DPR. The DPR should be complete in all respect with all report drawings, statements and documents necessary for obtaining the grant from the Government of India. B. Scope of Work under Project Management Consultancy (PMC):- PMC will coordinate, execute and monitor the activities leading to the construction of approved DUs (Dwelling units) by Govt. of India. All the activities till the completion of DUs will be taken care of by PMC PMC shall also administer the works by the beneficiaries and ensure that the agreement between the ULBs and beneficiaries whether related to quality or quantities of work are executed in accordance with its provisions. PMC shall attach Beneficiaries to the project in PMAY-MIS and also upload Annexure 7A 7C. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the application of advance ruling on sample basis) i.e. preparation of DPR and Project Management Consultancy are not covered in the functions entrusted to a municipality under Article 243W of the Constitution in our view. In view of the above, both the members unanimously rule as under; RULING Question 1. Whether the Project Development Service (i.e. Detailed Project Report Service) and Project Management Consultancy services ('PMCS') provided by the applicant to recipient under the Contract for SUDA; and the Project Management Consultancy services ('PMC') under the Contract for PMAY would qualify as an activity in relation to function entrusted to Panchayat or Municipality under Article 243G or Article 243W respectively, of the Constitution of India? Answer 1 No Question 2. If answer to question i is in affirmative, would such services provided by the applicant qualify as Pure services (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, as amended (S. No. 3A) by Notification No. 2/2018- Central Ta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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