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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 ..... ign and project management services for civil works or infrastructure construction works undertaken by the applicant are services that are appropriately classifiable under Heading 9983 - Other professional, technical and business services of the Scheme of Classification of Services notified as Annexure to Notification No. 11/2017 Central Tax (Rate) dated 28.06.2017 and is liable to GST at the rate of 18% as per entry at SI No. 21 (ii) of Notification No. 11/2017 Central Tax (Rate) dated 28.06.2017. Whether the services rendered by the applicant to Rebuild Kerala, Kerala State Public Works Department and HLL Infratech Services Ltd are eligible for exemption under entry at SI. No. 3 of Notification No. 12/2017 Central Tax (Rate) dated 28-06-2017 as claimed by them? - HELD THAT:- The applicant is rendering services to Rebuild Kerala which is an initiative of the Government of Kerala to build sustainable and resilient roads and allied structures that are scientifically designed for efficiency of transport and accordingly the services rendered to Rebuild Kerala are to the Government of Kerala itself - As stated by the applicant the services rendered by them are in relation to the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act) and the Kerala State Goods and Services Tax Act, 2017 (hereinafter referred to as KSGST Act) are the same except for certain provisions. Accordingly, a reference hereinafter to 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 civi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in connection with Kerala State Construction Corporation. It was clarified in the above advance ruling that project management services, geotechnical investigation works and structural engineering design are eligible for exemption 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made in the application and requested to issue a ruling on the basis of the submissions in the application. 7. Discussion and Finding: 7.1. The issue was examined in detail. The application is admissible under subsection (2) of Section 97 of the 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 serv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ys, roads and streets, including elevated highways used for motor vehicle traffic; bridges and tunnels; ancillary road transport facilities such as rest stops, weigh stations, toll booths; mass transit systems, such as light rail or subway systems; railways 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 rep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as under:- (a) Urban planning including town planning. (b) Regulation of land-use and construction of buildings. (c) Planning for economic and social development. (d) Roads and bridges. (e) Water supply for domestic, industrial and commercial purposes. (f) Public health, sanitation conservancy and solid waste management. (g) Fire services. (h) Urban forestry, protection of the environment and promotion of ecological aspects. (i) Safeguarding 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. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at under Article 243 G of the Constitution or to a Municipality under Article 243 W of the Constitution. 7.8. Based on the discussion above, we conclude that the services supplied by the applicant to Rebuild Kerala and Public Works Department are eligible for exemption as per the entry at SI. No. 3 of Notification No. 12/2017 Central Tax (Rate) dated 28-06-2017 being pure services provided to State Government by way of any activity in relation to any function entrusted to a Panchayat or Municipality under Article 243 G or Article 243 W of the Constitution. 7.9. M/s HLL Infratech Services Ltd 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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