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TMI Blog2022 (7) TMI 499X X X X Extracts X X X X X X X X Extracts X X X X ..... Scope of the supply as mentioned by the applicant includes supply of both goods and services. Thus the transaction covers the procurement of goods as well in addition to the services, disqualifying the present supply to be covered under the concept of 'pure services'. Hence the exemption clause under entry SI.No.3- (Chapter 99) of table mentioned in Notification No.12/2017- Central Tax (Rate) dated 28.06.2017 is not applicable for the instant case. In view of the above, the rest of the issues like APCPDCL being a 'Local Authority' or the supply being one of the functions entrusted to panchayat under Article 243G of the Constitution, find no relevance to take up for further discussion. - AAR No.05/AP/GST/2022 - - - Dated:- 21-3-2022 - SRI. D. RAMESH, AND SRI. RV PRADHARNESH BHANU, MEMBER Represented by : CA Vijay Bhaskar Ammu ORDER (Under sub-section (4) of Section 98 of Central Goods and Services Tax Act, 2017 and sub-section (4) of Section 98 of Andhra Pradesh Goods and Services Tax Act, 2017) 1. At the outset we would like to make it clear that the provisions of CGST Act, 2017 and SGST Act, 2017 are in pari materia and have the same prov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or exemption from Central Goods and Service Tax and SI.No.3 (Chapter 99) of table mentioned in G.O.Ms.No.588 - (Andhra Pradesh) State Tax (Rate) Dated 12/12/2017 and accordingly eligible for exemption from Andhra Pradesh Goods and Service Tax. On Verification of basic information of the applicant, it is observed that the applicant is under State jurisdiction, i.e. Assistant Commissioner (ST) Steel Plant Circle, Visakhapatnam Division. Accordingly, the application has been forwarded to the jurisdictional officer and a copy marked to the Central Tax authorities to offer their remarks as per Sec. 98 (1) of CGST /APGST Act 2017. In response, remarks are received from the State jurisdictional officer concerned on the issue, stating that no issues are pending with the subject matter of the Advance Ruling sought by the applicant. 5. Scope of the contract in detail: 5.1 The applicant has agreed to provide supply of manpower for preparation and serving of spot electricity bills services to APCPDCL in consumer Premises of LT cat-I, cat-II cat IV (D E) (Excluding High value Agricultural Services) with GPRS enabled spot billing machines with/ without IR/ IRDA port readings in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... per schedule. 9. Bill preparation and issue shall take place the same day of every month for a given consumer as per calendar schedule. 10. The spot billing agency shall have to record the movements of their meter readers in the movement register kept in section offices/sub-Divisions so that, the daily progress of completion of reading can be monitored by the Deputy Executive Engineer/ Operation/Asst Executive Engineer/ Operation to discharge their legitimate duty of timely completion of the billing as per the schedule. The meter reader of the spot billing agency in the evening shall give manual exceptional report for the following cases. Struck up Burnt Progressive reading with DC No meter with supply (MNE) No seals (TC seal, meter cover seal) Meter glass broken Reading not furnished Door lock Defective IRDA meter Any other observation, which cause loss of revenue to APCPDCL like malpractices (Purpose of supply misused), theft of Energy etc. 11. The spot billing agency, on day basis, shall have to go to the premises where AAO/ERO specifies for uploads for billing data and download the data from the nea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eters without proper reason no remuneration shall be paid. 15. Penalty may be imposed if the billing is not completed in time schedule without proper reasons/without permission from concerned officers. 16. Where the IRDA port is not scanned and transferred to Ae login, manual billing for such services shall not be entertained and no remuneration shall be 17. Readings should be taken through IR/IRDA port only for the services to which IR/IRDA port were installed. No remuneration will be allowed for the services for which billing not done through IRDA ports, 18. In case any new services released in the premises of UDC/Bill stopped services against which arrears outstanding, a list of such services is to be communicated to Asst Executive Engineer/ Operation and Dy. Executive Engineer /operation concerned. 19. The bill preparation shall take place on the same day of every month. Remuneration shall not be paid if there is delay or more than 2 days in issuing the bills. Condemnation of delay is at the sole discretion of management. 20. The APCPDCL officers are authorized to random check the bill issued to the consumer under correct status with the actual rea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssness or negligence on the part of himself or his employees or his authorized agents. The agency should completely indemnify the APCPDCL for any accident or damage as per the clause or P.S. of APDS. 5.5 The applicant has raised monthly invoices regularly and has charge 18% GST in the invoices raised and has deposited this GST amount from time to time to the government as the Contract Agreement for consultancy services has provision for the amount of GST over billed amount to be paid by the APCPDCL. 5.6 The applicant further states that its client, APCPDCL is of the view that the supply of manpower for preparation and serving of spot electricity bills services provided to the extent of such services provided in rural areas to them are exempt from CGST and Andhra Pradesh GST as per of Notification No.12/2017 Central Tax (Rate) dt: 28.06.2017 and G.O.Ms.No.588 (Andhra Pradesh) State Tax (Rate) dt:12.12.2017 respectively. 5.7 Given the above background, the present application is being preferred before the Hon'ble Authority of Advance Ruling to determine whether the supply of manpower for preparation and serving of spot electricity bills services provided to the extent o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... SI.No. Chapter, Section, Heading, Group or service code (Tariff) Description of Services Rate (Percent) 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 Government 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 From the above mentioned notification, it can be stated that the services are exempted from the CGST and SGST Tax if the following conditions are satisfied cumulatively: They are rending pure services; To the Central Government, S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... renovation, alteration or commissioning of any immovable property wherein transfer of property in goods (Whether as goods or in some other form) is involved in the execution of such contract; In the Contract between the applicant and APCPDCL, there is no component of transfer of property in goods as evident from the contract agreement and is purely a service contract. As per the scope of work mentioned above in point no.7 of the applicant is mainly engaged in providing supply of manpower for preparation and serving of spot Electricity Bills to the APCPDCL through its staff and employees. The scope of supply of manpower for preparation and serving of spot electricity bills services under the terms of contract comprises of the spot billing agency shall bill the services as per schedule transformer wise and complete the work well within the schedule dates. 6.3 APCPDCL qualifies to be a Central Government, State Government, Governmental Authority or local authority: APCPDCL is a company under the Energy Department of the Government of Andhra Pradesh. The Andhra Pradesh Central Power Distribution is headed by the Energy Department of the Government of Andhra Pradesh by w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of the State of Andhra Pradesh and qualifies to be a 'Local authority'. 6.4 Services are in relation to any function entrusted to a panchayat under Article 243G of the Constitution Article 243G of the Constitution has been briefed for reference: 243G.Powers, authority and responsibility of Panchayats subject to the provision of this Constitution the Legislature of a State may by law, endow the panchayats with such powers and authority and may be necessary to enable then 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 economic development and social justice as may be entrusted to them including those in relation to the matters listed in the eleventh schedule . The Eleventh Schedule (Article 243G) of the Constitution list out the matters for economic development and social justice. The relevant extract of the schedule has been stated hereund ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax (rate) dated. 28.06.20.2017. 7. Virtual Hearing: The proceedings of Hearing were conducted through video conference on 21.10.2021, for which the authorized representative, CA Vijay Bhaskar Ammu attended and reiterated the submissions already made. 8. Discussion and Findings: We have examined the issues raised in the application in light of the facts submitted by the applicant. The taxability, classification of the services, applicable rate of tax, and eligibility of exemption etc., for the Services supplied or to be supplied, as governed under the provisions of respective GST Acts are examined. As seen from the documents on record, we observe that the applicant is engaged in supply of Manpower for preparation and serving of spot Electricity bills services to APCPDCL. Now we examine Whether the services of the applicant are 'Pure Service' Whether APCPDCL is a 'Local Authority' Whether the supply is in relation to functions entrusted to panchayat under Article 243G of the Constitution. to seek exemption under (Chapter 99) entry 3 of the notification no 12/2017-Central Tax (Rate) dt:28.06.2017. 8.1 Whether the servic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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