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TMI Blog2024 (4) TMI 842X X X X Extracts X X X X X X X X Extracts X X X X ..... d bills on claiming that the service is of pure service and the BBMP is a municipality constituted with Government of Karnataka, in relation to functions covered under 11th & 12th schedule to the constitution of India in terms of Article 243W and 243G of the constitution of India and hence the said services are exempted under entry No. 3 and 3A of the Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017, as amended. 3. In view of the above, the applicant has sought advance ruling in respect of the following questions:- a. Whether the contract (excluding works contract service or other composite supplies involving supply of any goods) we are providing as 'supply of Teachers and Lecturers to BBMP schools and colleges on outsourcing basis' are exempted from both CGST and SGST? b. Can we raise the bills to BBMP without CGST and SGST? c. Shall we claim the payment for our services received from BBMP towards 'supply of Teachers and Lecturers to BBMP schools and colleges on outsourcing basis' as EXEMPTED SUPPLIES in our regular GST filing and 'CRYSTAL INFOSYSTEMS AND SERVICES GSTIN 29ABCPV2897BZB' is not liable to pay CGST and SGST to the Government ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of India and thus the services are exempted under entry number 3 or 3A of the Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017, as amended. 6.2 The applicant furnished the copy of BBMP vide their letter dated 19.12.2023, addressed to them, wherein clarification on applicability of GST on supply of teachers/lecturers to schools/colleges run by BBMP on outsource basis, has been given on the basis of the following grounds:- a) The BBMP is a division in the Bruhat Bengaluru Mahanagara Palike which is Bangalore City Corporation, established under Karnataka Municipal Act 1976 and now working under The Bruhat Bengaluru Mahanagara Palike Act 2020. The constitution of BBMP is a municipality by virtue of Article 243 Q of the Constitution of India and thus to be considered as Municipality as defined under Article 243 P of the Constitution of India and hence it qualify to be a Local Authority as defined under Section 2(69) of the CGST Act 2017. b) The BBMP is engaged in running schools and colleges as one of its functions entrusted to it by Government of Karnataka, for which BBMP receives the services of supply of teachers/lecturers on outsource basis from the applicant, for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vance ruling is sought by the applicant and relevant facts along with the arguments made by the applicant & the submissions made by their learned representative during the time of hearing. 11. The applicant submitted that they are involved in supply of Teachers and Lecturers to BBMP schools and colleges on outsourcing basis; the said service is of nature of pure service as no goods are associated with the supply; the recipient of said service i.e. BBMP, being a Municipality (Municipal Corporation) constituted by Government of Karnataka qualifies to be a local authority; the service is in relation to the functions of the municipality covered under 12th Schedule, Article 243 W of Constitution of India and thus the services are exempted under entry number 3 of the Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017, as amended. 12. In view of the above, the issue before us to examine / decide is whether the exemption under entry number 3 of the Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017, as amended is applicable to the instant case or not. In this regard we invite reference to the entry supra, which is as under: SI. No. Chapter, Section, Heading, Group o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 243 P of the Constitution of India. Thus it qualifies to be a Local Authority as defined under Section 2(69) of the CGST Act 2017. 15. Now we proceed to examine whether the impugned services are provided by way of any activity in relation to any function entrusted to a Municipality under article 243W of the Constitution or not. In this regard we invite reference to the list of functions entrusted to municipality under article 243 W of the constitution, which is as under: 243W : Powers, authority and responsibilities of Municipalities, etc Subject to the provisions of this Constitution, the Legislature of a State may, by law, endow (a) the Municipalities with such powers and authority as may be necessary to enable them to function as institutions of self-government and such law, may contain provisions for the devolution of powers and responsibilities upon Municipalities, subject to such conditions as may be specified therein, with respect to,- (i) the preparation of plans for economic development and social justice; (ii) the performance of functions and the implementation of schemes as may be entrusted to them including those in relation to the matters listed in the Twelf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e ruling and the said section is as under:- 97 (2) The question on which the advance ruling is sought under this Act, shall be in respect of,- (a) classification of any goods or services or both; (b) applicability of a notification issued under the provisions of this Act; (c) determination of time and value of supply of goods or services or both; (d) admissibility of input tax credit of tax paid or deemed to have been paid; (e) determination of the liability to pay tax on any goods or services or both; (f) whether applicant is required to be registered; (g) whether any particular thing done by the applicant with respect to any goods or services or both amounts to or results in a supply of goods or services or both, within the meaning of that term 17. It could be seen from the above that the authority can't give any decision on the issues that are not covered under Section 97(2) of the CGST Act 2017. In the instant case the questions on which advance ruling has been sought for, by the applicant, are not covered under the issues mentioned under Section 97(2) supra. Thus no rulings are given in respect of the remaining questions i.e. questions 2 to 4 as they are n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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