9911796707
TMI Blog2023 (8) TMI 1204X X X X Extracts X X X X X X X X Extracts X X X X ..... , in as much as TWAD Board qualifies as a Governmental Authority. - SHRI R. GOPALSAMY, I.R.S., SMT. N.USHA, MEMBER, 1. Any appeal against this Advance Ruling order shall be filed before the Tamil Nadu State Appellate Authority for Advance Rulings, Chennai under Sub-section (1) of Section 100 of Central Goods and Service Tax Act / Tamil Nadu Goods and Service Tax Act 2017 ( the Act in short) within 30 days from the date on which the ruling sought to be appealed against is communicated. 2. In terms of Section 103(1) of the Act, this Advance ruling pronounced by the Authority under Chapter XVII of the Act shall be binding only- (a) on the applicant who had sought it in respect of any matter referred to in sub-section (2) of section 97 for advance ruling; (b) on the concerned officer or the jurisdictional officer in respect of the applicant. 3. In terms of Section 103(2) of the Act, this advance ruling shall be binding unless the law, facts or circumstances supporting the original advance ruling have changed. 4. In terms of Section 104 of the Act, where the Authority finds that advance ruling pronounced by it under sub-section (4) of Section 98 or under sub-section (1) of section 101 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (T2)/CE/CBE/2018 dated 16.08.2018 for providing Combined Water Supply Scheme to Alampalayam Town Panchayat, Padaveedu Town Panchayat including 669 Rural Habitations in Pallipalayam and Tiruchengode Unions in Namakkal District and Sankari Town Panchayat in Salem District with Cauvery river as source - construction followed by Trial Run including paid maintenance of the scheme. The applicant states that M/s Tamilnadu Water Supply Drainage Board is a statutory body corporate constituted under TWAD Board Act, 1970 on 14.04.1971 and that TWAD Board is entrusted with the development of Water Supply and Sewerage Facilities in the State of Tamil Nadu, except Chennai Metropolitan Development Areas. 2.4. The parent Notification No. 11/2017-CT(Rate) dated 28.06.2017 prescribed rate of Tax on construction services at SI.No. 3 of the table therein viz - (ii) composite supply of works contract as defined in clause 119 of section 2 of CGST Act, 2017 at 9% under CGST Act, thereby implying total GST at 18% (CGST - 9% + SGST - 9%) . This was subsequently amended vide Notification No. 20/2017-CT(Rate) dated 22.08.2017, whereby in Serial No.3 of the Table therein, item (iii) was inserted viz - (iii) c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 01.01.2022 by the applicant, since TWAD Board falls under the category of 'Local Authority'. 3.2. The applicant is under the administrative control of Central Tax. The said jurisdictional authority was addressed to report if there are any pending proceedings against the applicant on the issues raised by the applicant in the ARA application and to give comments on the issues raised. The said authority submitted his report vide letter dated 06.01.2023, wherein he had stated that there are no pending proceedings in respect of the applicant on the questions raised in ARA. He also stated that the supply of services by the applicant to M/s Tamilnadu Water Supply Drainage Board will not be covered by Notification No. 15/2021-CT(Rate) dated 18.11.2021 read with Notification No. 22/2021-CT(Rate) dated 31.12.2021 on the basis of the rulings already given in applicant's own case in Order No. 07/AAR/2020 dated 31.01.2020 and therefore, the applicable rate of tax will be 18% (CGST - 9% +SGST - 9%) on the supply of services by the applicant under GST Act, 2017. 3.3. The State tax officer did not furnish any report regarding pending proceedings against the applicant on the issues rais ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (Rate) dated August 22, 2017, wherein Entry 3(iii) was substituted with the following:- (iii) Composite supply of works contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 2017, supplied to the Government, a local authority or a Governmental authority by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of, - (a) a historical monument, archaeological site or remains of national importance, archaeological excavation, or antiquity specified under the Ancient Monuments and Archaeological Sites and Remains Act, 1958 (24 of 1958); (b) canal, dam or other irrigation works; (c) pipeline, conduit or plant for (i) water supply (ii) water treatment, or (iii) sewerage treatment or disposal. Notification No. 11/ 2017 was further amended vide Notification No. 31/2017-Central Tax (Rate) dated October 13, 2017, wherein the words Government, a local authority or Governmental authority were replaced/ substituted by the words Central Government, State Government, Union territory, a Local Authority, a Governmental Authority or a Government Entity . 5.3. The terms 'Government A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... force with effect from the 1st day of January 2022, the lower rate of tax of 12% provided by Entry 3(iii) of Notification No. 11/2017-Central Tax (Rate) dated June 28, 2017, was restricted to works contract supplied to Central Government, State Government, Union territory and a Local authority only. Thus the terms 'Governmental Authority or Government Entity' was omitted. 5.5. It is essential at this juncture to see that whether M/s Tamil Nadu Water Supply and Drainage Board would fall under Governmental Authority or Government Entity or Local Authority. It was the contention of the Applicant that TWAD Board falls under the category of 'Local Authority'. Then it is imperative to see what is a 'Local Authority'. The term local authority as defined in Section 2(69) of the CGST Act, 2017 means- Local authority means - (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 Zilla Parishad, a District Board, and any other authority legally entitled to, or entrusted by the Central Government or any State Government with the control or ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onferred with any power to control or manage municipal or local fund as stipulated in the definition of local authority in S.2(69)(c) of the CGST Act, 2017. 5.7. In view of the above provisions, it is clear that TWAD Board has been constituted only to implement certain functions (not all the functions) of local bodies and it cannot be equated to a local body and hence it can be concluded that TWAD Board is not a Local Authority. 5.8. M/s TWAD Board is a Board, constituted by an Act of Tamil Nadu State Legislature called Tamil Nadu Water Supply and Drainage Board Act, 1970 with 100% contribution by way of Government and controlled by Government by way of appointing Directors of the TWAD Board entrusted with the development of Water Supply and Sewerage facilities in Municipalities and Panchayats in the State of Tamil Nadu, except Chennai Metropolitan Development. Thus M/s Tamil Nadu Water Supply and Drainage Board is a 'Governmental Authority' as defined under 2(zf) of the Notification No. 12/2017-CT(rate) as amended effective from 13.10.2017 and thereby supply is made to the 'Governmental Authority' by the Applicant. 5.9. Accordingly, M/s Tamil Nadu Water Supply and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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