9911796707
TMI Blog2022 (12) TMI 952X X X X Extracts X X X X X X X X Extracts X X X X ..... rks undertaken in divisions of Bellary and Gulbarga. Accordingly, the applicant entered into an agreement dated 26.07.2017 and completed the project during 2019. The instant application was filed on 08.11.2022, after completion of the said project in 2019, as the applicant intends to seek clarity as to whether services rendered to KUIDFC are exempted from GST or not. In the instant case the maintainability of the application needs to be examined. It is pertinent to mention here that the word being is the present participle of the verb be and used to form tenses in the progressive (or continuous) aspect. A present participle is a verb form (or verbal) made by adding-ing to the base that often functions as an adjective. Use of present partici ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment, monitoring and evaluation studies as consultants; they are registered under CGST / KGST Act 2017; they have provided service to Karnataka Urban Infrastructure Development Finance Corporation Ltd., (KUIDFC). 3. Applicant also stated that KUIDFC is incorporated under Companies Act, having 75.20% of shareholding by the State Government of Karnataka and 24.80% of shareholding by the Chairman, Bangalore Development Authority, a Government Entity in terms of definition given in Notification No.32/2017-Central Tax (Rate) dated 13.10.2017; KUIDFC is a State Level Nodal Agency for implementation of Government of India schemes like JNNURM, UIDSSMT etc., which has secured the status of State Level Financial Institution (SLFT) from Government of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ces, implementing agencies of the Local Government Bodies and State Line Departments in the efficient monitoring of sub-programmes, is eligible for claiming exemption from GST under the conditions of exemption as per Notification No.12/2017 as pure services, for the period of our services provided to them i.e. July 2017 to June 2019. b) The services provided by STEM (the applicant), our office, as Supervision and Programme Management Consultants for NKUSIP programme of KUIFDC from July 2017 to June 2019 by the virtue of PMC works undertaken by our office (viz: Supervision and monitoring of Water supply to households, underground drainage network, water treatment plants, sewage treatment plants with respect to quality control procedures an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... informed that Government entities providing services pertaining to water supply and sanitation etc., which are basic amenities provided to the ULBs and hence they submitted revised invoices without claiming GST and also filed GST returns with transactions from KUIFDC project shown under exemption. Thus the applicant filed instant application seeking advance ruling as to whether KUIFDC being an intermediary between ULBs and State Government of Karnataka is exempted from GST as per the Notification 12/2017 supra or not. 7. Applicant's Interpretation of Law: The applicant furnished the following interpretation of law with regard to the questions raised. 7.1 KUIFDC is incorporated under Companies Act 1956, having shareholding of 75.20% by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Established by any Government, With 90 percent or more participation by way of equity or control, to carry out a function entrusted by the Central Government, State Government, Union Territory. 7.3 However, they have been informed through their council members that KUIFDC may not be exempted as they are not directly Government Body by itself and constituted under Companies Act 1956 and by virtue it is only an agency formed for financing the implementation works acting as an intermediary or nodal agency on behalf of State Government and ULBs. PERSONAL HEARING PROCEEDINGS HELD ON 10.11.2022 8. Sri Joseph, Senior Manager and Sri. Nagaraju, Accounts Executive & Authorised Representative of the applicant appeared for personal hearing procee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... intends to seek clarity as to whether services rendered to KUIDFC are exempted from GST or not. In the instant case the maintainability of the application needs to be examined. 13. In this regard we observe that Section 95(a) of the CGST Act 2017, while defining the term 'advance ruling', stipulates that an applicant can seek advance ruling on the questions specified under Section 97 (2) of the CGST Act 2017, in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the said applicant. 14. It is pertinent to mention here that the word "being" is the present participle of the verb "be" and used to form tenses in the progressive (or continuous) aspect. A present part ..... X X X X Extracts X X X X X X X X Extracts X X X X
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