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TMI Blog2025 (2) TMI 298X X X X Extracts X X X X X X X X Extracts X X X X ..... make it clear that the provisions of the Central Goods and Services Tax Act, 2017 (the CGST Act, for short) and the West Bengal Goods and Services Tax Act, 2017 (the WBGST Act, for short) have the same provisions in like matter except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the WBGST Act. Further to the earlier, henceforth for the purposes of these proceedings, the expression 'GST Act' would mean the CGST Act and the WBGST Act both. 1.2 The applicant submits that it is a Public Sector Undertaking Company of Government of West Bengal. It basically works as Nodal Agency of Government of West Bengal regarding Development of Information Technology Infrastructure, E-governance and maintenance thereof for various Departments of Government of West Bengal and PSUs. The Company collects orders from various Government organizations and appoint third party vendors, back-to-back contract basis and it basically earned a margin for maintaining its Administration and Supervision charges. 1.3 The applicant has made this application under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ior engineer (System Administrator, Software Support Personnel). 2.2 The applicant submits that as per entry no 3 of the Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017, as amended, 'Pure Services (excluding works contract service or other composite supplies involving supply of any goods) provided to the Central Government, State Government or Union Territory or local 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 Municipality under article 243W of the Constitution' is exempted from payment of tax, However, the nature of service provided by him do not have any direct nexus 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. Hence provision of such manpower services is liable to tax at 18 per cent (9 per cent CGST and 9 per cent WBGST). 2.3 The applicant has drawn attention to a memo issued by the Directorate of Public Health Engineering wherein the aforesaid supply of services has been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... luding food processing industries. 9. Khadi, village and cottage industries. 10. Rural housing. 11. Drinking 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. 2.6 As provided 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 Municipali ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Constitution. Hence provision of such manpower services is liable to tax at 18% (9% CGST and 9% WBGST). 2.8 The applicant submits that by virtue of amendment in Notification No. 16/2021-Central Tax (Rate) dated 18th November, 2021 and corresponding WBGST Notification No. 38-F.T. dated 10th January, 2021 the words 'or a Government Authority or a Government Entity' came to be omitted from Sr. 3 & 4 from the Notification No. 12/2017-State Tax rate vide No. 1136-F.T. 28th June, 2017. Accordingly, it is stated that since the Public Health Engineering (PHE) is a Government Authority, the benefit of exemption under Notification 12/2017-Central Tax (Rate) dated 28.06.2017, as amended, is not applicable in his case. 2.9 The applicant submits that the personnel deployed was carried out only for support or ancillary activities which were necessary to implement the primary activities. This makes it abundantly clear that the data entry operators and Junior System Engineers are completely outside the purview of 243G and 243W of the Constitution of India. In that regard, the applicant relied upon the judgement as pronounced by the Hon'ble Authority for Advance Rulings Karnataka in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ords 'or a Government Authority or a Government Entity', are omitted from the aforesaid Entry at Sl. No.3'. 3. Submission of the Revenue 3.1 The concerned officer from the revenue has not expressed any view on the issue raised by the applicant. 4. Observations & Findings of the Authority 4.1 We have gone through the records of the issue as well as submissions made by the authorized representatives of the applicant during the course of personal hearing. 4.2 We find from the documents produced before us that the applicant is engaged in the project of Water Supply Scheme for the benefit of the general public by Public Health Engineering Department (PHE) to supply contractual junior engineers to execute 'JAL JEEVAN MISSION' project in the state of west Bengal. 4.3 We find that the applicant has raised three questions in the application made in FORM GST ARA-01. However, all the three questions, being repetitive in nature, may be summarized into a single issue which is to determine the taxability of supply of man power services to PHE Department in terms of Serial No 3 of Notification no. 12/2017-State Tax (Rate) vide 1136 F.T. dated 28.06.2017. 4.4 The applicant contends that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e said services are in relation to any function entrusted to a Panchayat under article 243G or to a municipality under article 243W of the Constitution of India. 4.7 The term 'pure services' has not been defined under the GST Act. However, a bare reading of the description of services as specified in entry serial number 3 of the Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017, as amended, denotes supply of services which does not involve any supply of goods can be regarded as pure services. The applicant has submitted that as per the work order issued to him by PHE, he provides manpower services of 583 Junior Engineers for executing 'JAL JEEVAN MISSION' Project. It prima facie appears that the aforesaid supply doesn't involve any transfer of materials in goods. We therefore hold that the supply of services as provided by the applicant is pure services. 4.8 Now we proceed to examine the second condition i.e., whether the applicant provides services to the Central Government, State Government or Union Territory or local authority. Both the work order and the letter bearing memo no 1919/RS dated 15.07.2024 [supra] submitted by the applicant issued by Directorate of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant for supply of data entry operator & junior engineer (System Administrator, Software Support Personnel) throughout the West Bengal in connection with JJM is found to be covered by the subject matter as listed in the Eleventh and/or Twelfth Schedule thereby can be regarded as a supply in relation to functions entrusted to a Panchayat under article 243G and/or to a municipality under article 243W of the Constitution of India. 4.12 The applicant contends that supply of data entry operator & junior engineer (System Administrator, Software Support Personnel) to the Public Health Engineering Department (PHE), Government of West Bengal is completely outside the purview of 243G and 243W of the Constitution of India and therefore such supply cannot be claimed as an exempt supply. The applicant, in support of his contention, has placed reliance on a number of advance rulings. We have duly considered all the advance rulings as relied up on by the applicant. 4.13 In Madivalappa Karveerappa Belwadi, [2021] 131 taxmann.com 269 (AAR - KARNATAKA)/[2021], the advance ruling authority has observed that the applicant is providing Manpower Services like Drivers and cleaners for solid waste manage ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hority for Advance Ruling has held that such supply is exempted from payment of tax vide Entry at Sr. No. 3 of the Notification No. 12/2017-Central tax (Rate)-dated 28th June, 2017. 4.16 We thus find that in all the rulings as referred to by the applicant, the decisive factor was whether the activity is 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. In cases where the direct and proximate relationship was established in this regard, the authority has held that such supply qualifies for exemption under entry No. 3 of the Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017. In view of the above discussions, we rule as under: RULING Supplies of data entry operator & junior engineer (System Administrator, Software Support Personnel) made by the applicant to the Public Health Engineering Department (PHE), Government of West Bengal for executing Jal Jeevan Mission is exempted from payment of tax vide serial number 3 of the Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 [corresponding State Notification No. 1136 F.T. dat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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