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TMI Blog2020 (11) TMI 1029X X X X Extracts X X X X X X X X Extracts X X X X ..... min Ajivika Mission. It is not covered in the definition of local authority. Now. it is to be examined whether M.P. DAY Rajya Gramin Ajivika Mission is covered under governmental authority or government entity. The applicant has been asked to submit the constitution of M.P. DAY Rajya Gramin Ajivika Mission so as to examine whether it is covered under governmental authority or government entity. However, the applicant's could not give requisite information about constitution of M.P. DAY Rajya Gramin Ajivika Mission and how the Exemption is available to the applicant under entry no. 3 to Notification No. 12/2017 CT (Rate) dated 28th June 2017. The Applicant is not eligible to get benefit covered under the entry no 3 of Exemption Notification No. 12/2017 Central Tax (Rate) dated 28th June 2017 for the work order for which ruling has been asked for. - Order No. 17/2020, Case No. 07/2020 - - - Dated:- 4-11-2020 - SHRI MANOJ KUMAR CHOUBEY AND SHRI VIRENDRA KUMAR JAIN, MEMBER Present on behalf of Applicant : Shri Navneet Garg, CA PROCEEDINGS (Under sub-section (4) of Section 98 of Central Goods and Service Tax Act, 2017 and the Madhya Pradesh Goods Service T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ION RAISED BEFORE THE AUTHORITY - The below questions have been formed in relation to the services being provided by applicant to the recipients : 4.1. Whether work order received by the applicant from the Lila Panchayat. Singrauli under Madhya Pradesh Deendayal Antyodaya Yojana. State Rural Livelihood Mission. Panchayat Rural Development Department. Govt. of M.P. for providing Skill. Training to the youth in the district of Singrauli in Tourism and Hospitality, Healthcare, Retail, IT-ITES and Construction sector is covered under Entry No. 3 of Exemption Notification No. 12/2017-Central Tax (Rate). dated 28th June 2017 ? 4.2. Whether the Goods Service Tax is payable on work order received by the applicant from Jila Panchayat, Singrauli under Madhya Pradesh Deendayal Antyodaya Yojana. State Rural Livelihood Mission. Panchayat Rural Development Department. Govt. of M.P. for providing Skill Training to the youth in the district of Singrauli in Tourism and Hospitality. Healthcare, Retail. IT-ITES and Construction sector '? 5. DEPARTMENT VIEW POINT - The Joint Commissioner (Tech), CGST Central Excise, Bhopal vide letter F.No.IV(16)Adv/GST/TECH/BPL/2020tdated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in providing services to Government Departments. Local Authorities. Governmental Authorities and Government Entities by way of providing Skill Training to youth and develops them for Placement. 6.4. Notification No, 12/2017, dated 28th June 2017 contains Entry No. 3, which for the sake of convenience, is reproduced as under:- Sl. No. Chapter, Section, Heading, Group or Service Code (Tariff) Description of Services Rate (Per Cent.) Condition 1 2 3 4 5 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. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - (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. Article 243W in the Constitution of India 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 Twelfth Schedule; (b) the Committees with such powers and authority as may be necessary to enable them to carry out the responsibilities conferred upon them including those in relation to the matters listed in the Tw ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10. Urban forestry, protection of environment and promotion of ecological aspects 11. Construction of roads and bridges 12. Provision of urban amenities and facilities such as parks, gardens and playgrounds 13. Promotion of cultural. educational and aesthetic aspects 14. Burials and burials grounds. cremation and cremation grounds and electric crematoriums 15. Cattle ponds. prevention of cruelty to animals 16. Regulation of slaughter houses and tanneries 17. Public amenities including street lighting, parking spaces, bus stops and public conveniences 18. Vital statistics including registration of births and deaths 6.11. As per the Sanction order, the applicant has to provide services by way of Training-cum-Placement to 1.000 unemployed youth of Singrauli District. 200 Trainees each in the field of Tourism and Hospitality. Healthcare, Retail. IT-ITES and Construction, CEDMAP (the applicant) shall be paid ₹ 15.000/- per trainee for such services. 6.12. Thus, works of pure services undertaken by the applicant is covered in clause 18 (Technical training and vocational education) and clause 27 ( Welfare of the weaker sections, and i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Hospitality. ii. Healthcare iii. Retail. iv. IT-ITES v. Construction c. After training, placement has to be provided to at least 70% of trainees. 6.17.3. Entry No. 18 of Schedule Eleven to the Constitution entrust the function - Technical training and vocational education. to the local authorities. which shall be qualified for exemption from GST as per Entry No. 3 of Notification No. 12/2017 CT (Rate). We need to identify whether the work allotted to applicant falls within the meaning of Technical training and Vocation education . 6.17.4. As the Vocational Education word is not defined under the GST laws hence we need to take the general meaning - As per Wikipedia- Vocational education is education that prepares people to work as a technician or to take up employment in a skilled craft or trade like trades person or artisan. Vocational education is sometimes referred to as career and technical education. As per merriam-webster Training for a specific occupation in agriculture, trade, or industry through a combination of theoretical teaching and practical experience provided by many high schools in their commercial and techni ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a principal supply e. a composite supply comprising two or more supplies, one of which is a principal supply, shall be treated as a supply of such principal supply: 6.17.9. Here, the applicant is making two taxable supplies i.e. Training-Cum-Placement, which are naturally bundled. as per the industry trends both the services are generally provided in conjunction with each other. 6.17.8. Further, the question here is regarding the principal supply, so referring to the terms and conditions of work order, referred in point No. 1.2 above. conditions mainly emphasise on the preparation of training programme, providing training to 1000 trainees and most importantly it mandates the placement of 70% of the trainees, means the training has to be provided to all the 1000 trainees however if 70% of them are placed than also the work shall be deemed to be have been completely executed. 6.17.9. Hence the supply per se is a composite supply and fall within the meaning or Training and Vocational Education- hence it shall qualify for exemption given under Entry No 3 to the Notification No 12/2017-CT (Rate). 7. DISCUSSIONS AND FINDINGS 7.1 We have carefully considered th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under Article 243 W of the Constitution or to a Panchayat under Article 243G of the Constitution. 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 90 per cent or more participation by way or equity or control, to carry out a function entrusted by the Central Government, State Government, Union Territory or a local authority. Local authority' as defined under section 2(69) of the CGST Act means: (a) a Panchayat as defined in clause (d) of Article 243 of the Constitution: (b) a Municipality as defined in clause (e) of Article 243P of the Constitution: (c) a Municipal Committee, a Zilla Parishad, a District Board. and any other authority legally entitled to, or entrusted by the Central Government or any State Government with the control or management of a municipal or local fund: (d) a Cantonment Board as defined in section 3 of the Cantonments Act. 2006; (e) a Regional Council or a District Council constituted under the Sixth Schedule to the Constitution: (f) a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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