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TMI Blog2022 (2) TMI 240X X X X Extracts X X X X X X X X Extracts X X X X ..... Applicant to Municipal Corporation of Greater Mumbai ('MCGM'). At the outset, we would like to make it clear that the provisions of both the CGST Act and the MGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to any dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the MGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, the expression 'GST Act' would mean CGST Act and MGST Act. 2. FACTS AND CONTENTION - AS PER THE APPLICANT FACTS: 2.1 Sir JJ College of Architecture Consultancy Cell, the 'Applicant', was formed as per the guidelines of the Council of Architecture, a statutory body under the Act of Parliament and University of Mumbai. The Government of Maharashtra has permitted the applicant to render comprehensive architectural services. 2.2 The Applicant provides services to Government bodies, State corporations and Public Sector Undertakings (PSUs) in relation to comprehensive architecture including architectural design, structural design, MEP design, HVAC design, preparation of drawings, etc. 2.3 The Applicant has e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and Services Tax Act, 2017, supply includes all forms of supply of services made or agreed to be made for a consideration in the course or furtherance of business. In the instant case, Applicant is providing comprehensive architectural services involving all the services as enlisted and summarized in Para 4 of Annexure 1, which are in the course and furtherance of business of the Applicant. Therefore, the aforesaid services qualify as supply within the purview of GST. The supply under consideration is exempt under the provisions of GST law 2.8 As per Sr. No. 3 of Notification no. 12/2017 - Central Tax (Rate) ('exemption notification') dated 28th June 2017 (as amended from time to time) 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.....' 2.9 The impugned supply of the applicant is s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Municipal Corporation Act, 1888. 2.15 Given the above, it is evident that the Applicant is fulfilling all three conditions for the services being provided to fall within the ambit of the exemption notification as under: a. The supply by the applicant i.e. provision of comprehensive architectural services is in the nature of pure services b. The activity by MCGM for which pure services is rendered i.e. Repairs /restoration, reconstruction for development of recreation ground cum textile museum falls within the purview of the functions entrusted to municipality under article 243W of the Constitution of India c. Service recipient i.e. MCGM is a local authority 2.16 Hence, the supply under consideration is covered within the ambit of exemption notification and consequently is exempted from the levy of GST. APPLICANT SUBMISSION DATED 14.07.2021:- Clarification with regards to the submission made by State Tax officer, (MUM- VAT- C 602), Nodal Division-1, Mumbai (Mail dated 06-07-2021) - 2.17 With respect to the submissions made by the Learned State tax Officer, applicant's submissions are as under: 2 17.1 The Learned State Tax Officer has agreed that applicant is satisfyi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l design, structural design, MEP design, HVAC services design, preparation of drawings etc for repairs/restoration, reconstruction for development of textile museum cum recreation ground is within the purview of the functions entrusted to the Municipality as per Article 243W. 2.17.6 Without prejudice to the above, it is iterated that in accordance with the general rules of interpretation and the principle of natural justice, any exemption notification should be construed liberally with the intent to benefit the applicant. Hence applicant requests that applicant may be allowed exemption from GST in respect of the impugned supply. 03. CONTENTION - AS PER THE CONCERNED OFFICER: OFFICER SUBMISSION DATED 21.06.2021:- 3.1 As per the entry no. 3 of Notification No 12/2017 - C.T. (Rate) dated 28.06.2017 as amended by Notification No. 02/2018 dated 25.01.2018, stipulates conditions to be satisfied for claiming exemption. 3.2 The Nature of Supply should be in the form of "pure services". The Applicant is providing comprehensive architectural services as per the Agreement with MCGM, which is supply of pure services not involving supply of any goods, any composite supply involving supply o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8th June 2017, as amended from time to time, in as much as the applicant is supplying pure services to MCGM, a local authority by way of an activity in relation to any function entrusted to a Municipality under article 243W of the Constitution. 5.4.1 The relevant Sr. No. 3 of Notification No. 12/2017 - Central Tax (Rate) dated 28th June 2017 as amended by Notification No. 16/2021 - Central Tax (Rate) New Delhi, 18th November, 2021, with effect from 01.01.2022, is reproduced as under:- SI.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 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. Nil Nil 5.4.2 For any supply to be covered under Sr. No. 3 of the above said amended Notification, the supply should be in respect o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lfth Schedule. (b) The Committees with such powers and authority as may be necessary to enable them to carry out the responsibility conferred upon them including those in relation to the matters listed in the Twelfth Schedule." 5.5.5 Twelfth Schedule of the Indian Constitution provides for the following functions as under: 1. Regulation of land use and construction of land buildings. 2. Urban planning including the town planning. 3. Planning for economic and social development 4. Urban poverty alleviation 5. Water supply for domestic, industrial and commercial purposes 6. Fire services 7. Public health sanitation, conservancy and solid waste management 8. Slum improvement and up-gradation 9. Safeguarding the interests of the weaker sections of society, including the physically handicapped and mentally unsound 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 cr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted to the municipality by the State Government. Thus, we find that, the impugned activities are entrusted to the MCGM by the State Government and therefore the same are covered under clause (a) (ii) of Article 243W of the Constitution. 5.5.10 Further, we also reproduce Section 63A of the MCGM Act as under:- 63A. Where any duty has been imposed on, or any function has been assigned to the Corporation under this Act or any other law for the time being in force, or the Corporation has been entrusted with the implementation of a scheme, the Corporation may- (a) either discharge such duties or perform such functions or implement such scheme by itself; or (b) subject to such directions as may be issued and the terms and conditions as may be determined by the State Government, cause them to be discharged, performed or implemented by any agency : Provided that the Corporation may also specify terms and conditions, not inconsistent with the terms and conditions determined by the State Government, for such agency arrangements. 5.5.11 Section 63A states that Where any duty has been imposed on, or any function has been assigned to the Corporation under this Act or any other law for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 243W of the Constitution" is also satisfied in the subject case. 5.5.14 Therefore we hold that, the applicant is entitled for exemption under Sr. No. 3 of Notification No. 12/2017 - CTR dated 28.06.2017 as amended. 06. In view of the extensive deliberations as held hereinabove, we pass an order as follows: ORDER (Under Section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017) For reasons as discussed in the body of the order, the questions are answered thus - Question : - Applicability of GST exemption on Comprehensive architectural services that includes architectural design, structural design , MEP design , HVAC services design, preparation of drawings etc for repairs/ restoration, reconstruction for development of recreation ground cum textile museum at United India Mills 2 & 3 at Kala chowky provided by the Applicant to Municipal Corporation of Greater Mumbai ('MCGM'). Answer:- GST exemption vide Sr. No. 3 of Notification No. 12/2017 - Central Tax (Rate) dated 28th June 2017, is applicable on Comprehensive architectural services that includes architectural design, structural design, MEP design , HVAC servic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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