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TMI Blog2023 (3) TMI 1251X X X X Extracts X X X X X X X X Extracts X X X X ..... rence to corresponding provisions in IGST Act, 2017/HGST Act, 2017 as well. Sections 97(2) of the CGST Act, 2017 prescribes that Advance Ruling may be sought inter alia on the question of (b) Applicability of a notification issue under the provisions of this Act. (e) Determination of the liability to pay tax on any goods or services or both, (g) Whether any particular thing done by the applicant with respect to any goods and/or services or both amounts to or results in a supply of goods and/or services or both, within the meaning of that term. Proviso with reference to the Section 98(2) of CGST Act, 2017 states that where the questions raised in the application is already pending or decided in any proceedings in the case of the applicant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of consumption of water is informed to the consumers on prescribed rate. The invoice cum Receipt is issued to the customers at the time of payment alongwith GST." As per our understanding the said water supply activities is covered under GST code no. 996921. Accordingly we are collecting the GST and depositing it in the govt, treasury alongwith other due GST taxes after adjusting the input tax credit. Some residents are protesting that the Goods and Services Tax, 2017 is not applicable on the distribution of water supply as stated above and they had complained on the issue of charging GST on water supply bills at various fora. Queries on which Advance Ruling has been sought by the applicant:- 1. Whether the activities as mentioned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... area electricity supply, water supply & sewerage disposal and management are looked after/managed by the applicant company. He has also apprised that there are 2-3 resident welfare societies in the Amarvati Enclave complex. Now, the main issue is whether the activity of the supply of water to the residents of this society is a taxable event or not under the GST Act, 2017? In this regard, it is observed by the authority that as per the notification no. 12/2017 dated 28.06.2017, Pure Services (excluding works contract services) or other composite supplies involving supply of other goods provided to the local authority by way of any activity in relation to any function entrusted to municipality under article 243 W of the constitution of Indi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s; 2(31) ''consideration" in relation to the supply of goods or services or both includes,- (a) any payment made or to be made, whether in money or otherwise, in respect of, in response to, or for the inducement of, the supply of goods or services or both, whether by the recipient or by any other person but shall not include any subsidy given by the Central Government or a State Government; (b) the monetary value of any act or forbearance, in respect of, in response to, or for the inducement of, the supply of goods or services or both, whether by the recipient or by any other person but shall not include any subsidy given by the Central Government or a State Government: Provided that a deposit given in respect of the supply ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ged as public authorities, as may be notified by the Government on the recommendations of the Council, shall be treated neither as a supply of goods nor a supply of services. Section 9 Levy and collection.- (1) Subject to the provisions of sub-section (2), there shall be levied a tax called the central goods and services tax on all intra-State supplies of goods or services or both, except on the supply of alcoholic liquor for human consumption, on the value determined under section 15 and at such rates, not exceeding twenty per cent., as may be notified by the Government on the recommendations of the Council and collected in such manner as may be prescribed and shall be paid by the taxable person." In common parlance, a water distributio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty under Article 243W of the Constitution. From this, it can be construed that for any supply to be covered under the Pure Services that there should be no supply of goods, the recipient should be Central government/State government/Union territory/ Local Authority and services should be 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. Exclusion in this entry is already mentioned. Conclusion:- From the above discussions and legal provisions applicable in the case it can be said that the activity undertaken by the applicant cannot be considered as Pure Services which has been ..... X X X X Extracts X X X X X X X X Extracts X X X X
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