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TMI Blog2022 (5) TMI 403X X X X Extracts X X X X X X X X Extracts X X X X ..... ority as a judicial entity is separate from the State and cannot be regarded as the Central or a State Government and also does not fall in the definition of 'local authority'. Thus, regulatory bodies and other autonomous entities would not be regarded as the government for the purposes of the GST Acts. Holding of equity control of RUDSICO by Jaipur Development Authority and Rajasthan Housing Board cannot be treated as holding of equity control by government. Accordingly, we hold that RUDSICO is not a Governmental Authority. - RAJ/AAAR/03/2021-22 - - - Dated:- 13-12-2021 - SH. SATISH KUMAR AGRAWAL, AND SH. RAVI JAIN, MEMBER Present for the Applicant : Mrs. Ritika Rajvanshi, CA and Authorised Representative. (Proceedings under section 101 of the Central GST Act, 2017 read with section 101 of the Rajasthan GST Act, 2017) At the outset, we would like to make it clear that the provisions of both the Central GST Act, 2017 and the Rajasthan GST Act, 2017 are same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central GST Act, 2017 would also mean a reference to the same provi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uments to provide incentives for NRW reduction. The Applicant has agreed to provide Project Management Consultancy Services to RUDSICO for Rajasthan Secondary Towns Development Sector Project in Joint Venture with Haskoning DHV Consulting Pvt. Ltd. And Haskoning DHV Nederland B.V. The objective of the Contract Management Supervision Consultants (CMSC) i.e. the Applicant is to provide assistance to the Project Implementation Unit (PIU) for day to day contract management and construction supervision of the project towns of the respective package. The Applicant shall be responsible for effectively leading and taking initiative to manage, execute and implement the project by effective contract management and construction supervision. Haskoning DHV is the Lead Member in the Joint Venture and is authorized with the responsibility of all the Financial Administration work of the contract. Thus, the Applicant raise Invoice for its Project Management Consultancy Services to the Lead Member Haskoning DHV, who further raise Invoice for consolidated amount to RUDSICO. The payment when received by the Lead member, is further disbursed to the appellant and other members of the Joint Venture. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 43W of the Constitution. c) The third condition, whether recipient of Service, i.e., RUDSICO qualifies as 'Governmental Authority. In the instant case, as per the master data, the total authorized capital is Rs. 50 crore and the paid up capital is Rs. 48.67 crore. The paid up capital of only Rs. 41 crore is held by the Government of Rajasthan through H, E. Governor of Rajasthan, which is less than 90%, as per the definition given under Notification no. 11/2017-Central Tax (rate) and Notification no. 12/2017- Central Tax (rate) dated 28.06.2017, hence, the recipient of the service is not a Governmental Authority. Therefore, they are not eligible for exemption under Notification no. 12/2017- Central Tax (rate) dated 28.06.2017. 6. Aggrieved by the Ruling, the Appellant has preferred the present appeal before this forum on following ground. 6.1 In RUDSICO, more than 90% shareholding or equity Control is held by the Government of Rajasthan. 6.1.1 The definition of Governmental Authority as per the definitions given under Notification no. 11/2017-Central tax (rate) and Notification no. 12/2017- Central tax (rate) dated 28th June 2017: Governmental Authority me ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Jaipur Development Authority (JDA) Jaipur Development Authority is a body constituted under Jaipur Development Authority Act 1982 (Act. 25) as a statutory vehicle to implement the urban development of Jaipur as envisaged by the Department of Urban Development and Housing, Government of Rajasthan. JDA is charged and empowered to create basic infrastructure to meet the needs of the ever-increasing population and also for the required expansion of the city ensuring sustainable and orderly growth supported with effective monitoring and regulation through innovative and citizen participatory approach. Hence, both the entities are created by an Act of Parliament/ State Legislature by the Government of Rajasthan and qualify to be a Government Authority as per the Definition. 6.2. RUDSICO is entrusted with the developmental projects of the state of Rajasthan 6.2.1 RUDSICO is a Govt. of Rajasthan undertaking, is the State Level Nodal Agency (SLNA) for Govt. of India financed projects like AMRUT, smart city, UIDSSMT, UIG, Eleven City Sewerage and the state Govt. financed projects like ROB-RUB, Seven Cities Sewerage and Affordable Housing. Earlier it was known by the name of R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... November, 2015. In compliance of Cabinet order 160/2014 dated 12th Dec. 2014 Rajasthan Avas Vikas Infrastructure Limited (RAVIL) was merged into RUDSICO vide MCA order dated 29th January, 2016 and accordingly notification no. F. 3(K)/Esta./PD/DLB/14/4169 dated 12th April, 2016 has been issued in this regard. Rajasthan Urban Infrastructure Development Project (RUIDP) was merged into RUDSICO vide Administrative order no. dated 13/04/2016. 3. The official records of the company such as Director's Report, List of Stakeholders published on the Ministry of Corporate Affairs (MCA) Portal mentions it as 'A Government of Rajasthan Undertaking'. The Annual Return Forms (MGT-7) submitted by the Undertaking on the Ministry of Corporate Affairs (MCA) portal also states it as a 'State Government Company' A copy of the same has been attached for your reference in Annexure- 2. 4. RUDSICO is a State Government Company where more than 90 percent of the equity or control to carry out any function is owned by the Government of Rajasthan. It functions directly under the Minister- of UDH LSG, Government of Rajasthan as its Chairman. Appellant further submitted that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n column (4) of the said Table, unless specified otherwise, subject to the relevant conditions as specified in the corresponding entry in column (5) of the said Table, namely: - 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 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. NIL NIL 8.2.1 We observe that the following three conditions are to be fulfilled to be eligible for taking the bene ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Others 1099 10 10990 0.01% TOTAL 48669995 10 486699950 8.2.4 We find that out of total paid up capital of Rs. 48.67 Crore, only Rs. 40.99 Crore holding is with Government of Rajasthan through H.E. governor of Rajasthan, which is less than 90%. The appellant main contention is that the Rajasthan Housing board and Jaipur Development Authority are also Government entities as both have 90% holding of Rajasthan government. In this regard, our opinion is that to satisfy as Government authority more than 90% holding of equity should be with only Government not with any other entity established by the Government. As per section 2 (53) of Central Goods and Service Tax Act, 2017 Government means the Central government. In Rajasthan Goods and Service Tax Act, 2017 Government means the government of Rajasthan. Further, as per clause (23) of section 3 of the General Clauses Act, 1897 the 'Government' includes both the Central Government and any State Government. 8. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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