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TMI Blog2022 (3) TMI 1479X X X X Extracts X X X X X X X X Extracts X X X X ..... ion on the payments made with regard to above services. 2. Facts at the case:- 2.1 M/s. Aarav Consultancy Services Pvt. Ltd., having registered office at SR. MG. 490, MPHB COLONY, DD NAGAR, DANGNIYA, SECTOR 1, RAIPUR, Raipur, Chhattisgarh, 492001 and having GST No. 22AANCA6885D1ZK: have been working for preparation of Detailed Project Report of water supply schemes of Gram Panchayats in different District of Chhattisgarh State under Jal Jeevan Mission through PHE Department, Chhattisgarh. 2.2 The applicant has informed that they are engaged by Public Health Engineering Department (PHED), Chhattisgarh for preparation of detailed project report for various Gram Panchayats in the state of Chhattisgarh under Jal Jeevan Mission. The scope of service being as under - (i) Carrying out topographical survey Total station survey and review of the data available for survey work and planning of the schemes for water supply schemes under and as per the guidelines of Jal Jeevan Mission and CG PHE (ii) Preparation of detailed designs of all the components of the Retrofitting/SVS and preparation of cost estimates based on CG PHE USOR-2020. Calculation of annual maintenance cost and other st ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce the above-mentioned services come under GST exemption, 2% TDS on GST shall not be applicable, whereas their client (PHED) wants to deduct 2% TDS on GST and accordingly they seek clarification/ruling in the matter. 4. Personal Hearing:- Keeping with the established principles of natural justice, personal hearing in the matter was extended to the applicant in person, as requested by them and accordingly, Shri Loknath Sahu, Director of the Applicant appeared before us for hearing on 13.01.2022 and reiterated their contention. He also furnished a written submission dated 13.01.2022 along with sample copies of work order which has been taken on record. 5. The legal position, analysis and discussion: - At the very outset, we would like to make it clear that the provisions for implementing the CGST Act and the Chhattisgarh GST Act, 2017 [hereinafter referred to as "the CGST Act and the CGGST Act") are similar and thus, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the CGGST Act, 2017. Now we sequentially proceed to discuss the issues involved in the ruling so sought by the ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... necessary in the public interest so to do, on the recommendations of the Council, hereby exempts the intro-State supply of services of description as specified in column (3) of the Table below from so much of the central tax leviable thereon under sub-section (1) of section 9 of the said Act, as is in excess of the said tax calculated at the rate as specified in the corresponding entry in 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:- TABLE Sl.No. Chapter, Section, Heading. Group or Service Code (Tariff) Description of Services Rate (per cent.) Condition (1) (2) (3) (4) (5) 1. ........ 2. ........ 3. Chapter 99 Pure services (excluding works contract services 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or exemption from levy of CGST and CGGST, respectively. 12. To have a better appreciation of the issues involved, definitions of the above terms as provided under the CGST Act, 2017 are reproduced herein below: (i) As per Section-2(53) of the CGST. Act, 2017, "Government" means the Central Government. (ii) As per Section-2(53) of the CGGST, Act, 2017, "Government" means the State Government. (iii) "local authority" means- (a) a "Panchayat" as defined in clause (d) of article 243 of the Constitution: (b) a "Municipality" as defined in clause (e) of article 243P of the Constitution: (c) a Municipal Committee, a Zila Parished, a District Board, and any other authority legally entitled to, or entrusted by the Central Government or any State Government with the control or management of a municipal or local fund; (d) a Cantonment Board as defined in section 3 of the Cantonments Act, 2006; (e) a Regional Council or a District Council constituted under the Sixth Schedule to the Constitution; (f) a Development Board constituted under article 371 of the Constitution; or (g) a Regional Council constituted under article 371A of the Constitution; (iv) As per clause(zf) of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing water. 12. Fuel and fodder. 13. Roads, culverts, bridges, ferries, waterways and other means of communication. 14. Rural electrification, including distribution of electricity. 15. Non-conventional energy sources. 16. Poverty alleviation programme. 17. Education, including primary and secondary schools. 18. Technical training and vocational education. 19. Adult and non-formal education. 20. Libraries. 21. Cultural activities. 22. Markets and Fairs. 23. Health and sanitation, including hospitals, primary health centres and dispensaries. 24. Family welfare. 25. Women and child development. 26. Social welfare, including welfare of the handicapped and mentally retarded. 27. Welfare of the weaker sections, and in particular, of the Scheduled Castes and the Scheduled Tribes. 28. Public distribution system. 29. Maintenance of community assets. 12.2 The functions entrusted to the municipalities under 243W of the Constitution of India are reproduced hereunder: 1. Urban planning including town planning. 2. Regulation of land-use and construction of buildings. 3. Planning for economic and social development. 4. Roads and bridges. 5. Water sup ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 13. On the basis of the work order furnished by the applicant, it is evident that the service of preparation of detailed project report for various Gram Panchayats in the State of Chhattisgarh under Jal Jeevan Mission have been entrusted upon the applicant through the Public Health Engineering Deportment, Chhattisgarh. The scope of work under work order No. 3130, dated 18,08.2021, issued by Office of The Executive Engineer & Member Secretary, District Water and Sanitation Mission, Mahasamund, Chhattisgarh is for DPR (Detailed Project Report) for preparation of Single Village/ Retrofitting Schemes against E01 No. 01/2021-22 for Survey work of 62 Nos Single Village Schemes of Mahasamund District under Jal Jeevan Mission. Thus from the above analysis, with regard to the first question raised by the applicant, it is dear from the documents furnished before us by the applicant that the provision of services of survey and preparation of Detailed Project Report for water supply systems for Panchayats/ Municipalities by the applicant through Public Health Engineering Department, Chhattisgarh, qualifies as being "Pure Services" as per the definition and the services rendered thereby bei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of section 39, in such manner as may be prescribed. (6) If any deductor fails to pay to the Government the amount deducted as tax under sub-section (1), he shall pay interest in accordance with the provisions of sub-section (1) of section 50, in addition to the amount of tax deducted. (7) The determination of the amount in default under this section shall be made in the manner specified in section 73 or section 74. (8) The refund to the deductor or the deductee arising on account of excess or erroneous deduction shall be dealt with in accordance with the provisions of section 54: Provided that no refund to the deductor shall be granted, if the amount deducted has been credited to the electronic cash ledger of the deductee. 14.1 Thus from the above it becomes abundantly clear that TDS under GST under CGST Act, 2017 is applicable only on "taxable goods or services" and not on "all Taxable supplies". "Taxable supply" stands defined under Section 2 (108) of CGST Act, 2017 to mean a supply of goods or services or both which is leviable to tax under this Act, whereas TDS ibid stipulates about "taxable goods and services" and not on "taxable supply". It would not be out of place ..... X X X X Extracts X X X X X X X X Extracts X X X X
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