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TMI Blog2022 (10) TMI 860X X X X Extracts X X X X X X X X Extracts X X X X ..... the provisions of the CGST Act, Rules and the notifications issued there under shall include a reference to the corresponding provisions of the KSGST Act, Rules and the notifications issued there under, 3. The applicant requested an advance ruling on the following: 3.1. Supply of geotechnical investigation and preparation of foundation recommendation (soil report preparation) for civil works or infrastructure construction works comes under which scope of service that is whether; (a) pure service or (b) work contract services. 3.2. Supply of preparation of detailed project report (DPR) related to civil works/infrastructure construction works which scope of service that is whether; (a) pure service or (b) work contract services. 3.3. Supply of architectural and engineering design for civil works/infrastructure works comes under which scope of service that is, whether; (a) pure service or (b) work contract services. 3.4. Project management services for civil works or infrastructure construction works come under which scope of service that is, whether; (a) pure service or (b) work contract services. 4. Contentions of the Applicant: 4.1. The applicant submits ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on under serial number 3 of notification number 12/2017. 4.4. As per Section 2 (119) of the GST Act 2017 works contract involves only those contracts wherein transfer of immovable property is involved. Its outcome involves sales of goods and sales of services. In the above activities geotechnical investigation, preparation of detailed project report (DPR), architectural and engineering design and project management services the outcome is only recommendation and model such as geological findings, safe bearing capacity, recommendation for suitable foundation, construction methodologies engineering design etc. It involves only sale of service and does not involve any kind of immovable property in the execution of contract. Hence above activities does not comes under works contract but they are pure services and eligible for exemption of GST with condition laid by Central Government. 5. Remarks of the Jurisdictional Officer: 5.1. The application was forwarded to the jurisdictional officer as specified under subsection (1) of section 98 of the CGST Act, 2017. The jurisdictional officer submitted that the supplies mentioned in questions 1 to 4 are supply of services in which transfer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CGST Act. The questions raised are whether the activity of geotechnical investigation and preparation of foundation recommendation (soil report preparation), preparation of detailed project report (DPR), architectural and engineering design and project management services for or in connection with civil works or infrastructure construction works come under the scope of service; i.e; pure services or works contract services. 7.2. As per the Scheme of Classification of Services notified as Annexure to Notification No. 11/2017 CT (Rate) dated 28.06.2017 the Heading 9983 pertains to other professional, technical and business services. Group 99832 pertains to Architectural services and Group 99833 pertains to Engineering services. As per the Explanatory Notes to the Classification of Services, the Service Code 998322 under Group 99832 pertains to architectural services for residential building projects which include architectural services for single-family residential projects and multi-family residential projects and the Service Code 998323 pertains to architectural services for non-residential projects which include architectural services for office building projects, retail and rest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s and related structures; railway bridges and tunnels; marine and inland ports; harbours, locks, canals, and dams primarily used for transportation purposes; airports, runways, hangars; other aviation facilities; space transportation projects; oil and gas transportation projects; other transportation projects n.e.c. The Service Code 998339 under the Group 99833 pertains to Project management services for construction projects which include services of assuming overall responsibility for the successful completion of a construction project on behalf of a client, including organizing, financing and the design, requesting tenders, and performing management and control functions; project management services provided by engineers or architects. 7.3. From the submission made by the applicant, it is revealed that the services rendered by the applicant are geotechnical investigation and preparation of foundation recommendation (soil report preparation), architectural and engineering design, preparation of detailed project report (DPR), project management services for civil works or infrastructure construction works. The supply made by the applicant does not involve any supply of goods and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ding the interests of weaker sections of society, including the handicapped and mentally retarded. (j) Slum improvement and upgradation. (k) Urban poverty alleviation. (I) Provision of urban amenities and facilities such as parks, gardens, playgrounds. (m) Promotion of cultural, educational and aesthetic aspects. (n) Burials and burial grounds; cremations, cremation grounds; and electric crematoriums. (o) Cattle pounds; prevention of cruelty to animals. (p) Vital statistics including registration of births and deaths. (q) Public amenities including street lighting, parking lots, bus stops and public conveniences. (r) Regulation of slaughter houses and tanneries. 7.6. The functions entrusted to a Panchayat under the Eleventh Schedule to Article 243G of the Constitution are as under: - (i) Agriculture, including agricultural extension. (ii) Land improvement, implementation of land reforms, land consolidation and soil conservation. (iii) Minor irrigation, water management and watershed development. (iv) Animal husbandry, dairying and poultry. (v) Fisheries. (vi) Social forestry and farm forestry. (vii) Minor forest produce. (viii) Small scale industr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... td is a Public Sector Undertaking under the administrative control of the Ministry of Health and Family Welfare, Government of India and as such, they are neither Central Government nor a State Government. Hence the services supplied by the applicant to M/s HLL Infratech Services Ltd are not eligible for exemption under entry at SI. No. 3 of Notification No.12/2017 Central Tax (Rate) dated 28-06-2017 as exemption under the entry is available only for the specified services provided to the Central Government or State Government or Union territory or local authority. 7.10. Accordingly, the services rendered by the applicant in respect of the projects in question Nos. 3.1 to 3.4 above to Rebuild Kerala and Public Works Department are covered under the exemption under SI No. 3 of the Notification No.12/2017 Central Tax (Rate) dated 28-06-2017 and the services rendered by the applicant to M/S HLL Infratech Services Ltd are not covered under the said exemption. Given the observations stated above, the following rulings are issued: RULING 1. Supply of geotechnical investigation and preparation of foundation recommendation (soil report preparation) for civil works or infrastructure con ..... X X X X Extracts X X X X X X X X Extracts X X X X
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