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TMI Blog2025 (2) TMI 297X X X X Extracts X X X X X X X X Extracts X X X X ..... rinking tap water to every household in Bengal. The scope of works involves up-gradation and maintenance of integrated water quality management information system, overall coordination, supervision, handholding support, data management, digital scrutinization of pipeline alignment and asset evaluation and data collection from field through WB-JJM mobile application, design of mobile app, web application etc. - considering the scope of works being undertaken by the applicant, it appears prima facie that the supply doesn't involve any transfer of materials in goods. The supply of services as pure services. Whether the applicant provides services to the Central Government, State Government or Union Territory or local authority? - HELD THAT:- As the work orders have been issued from Nadia Division, Burdwan Division and Resource Division of Public Health Engineering Directorate, Government of West Bengal, admittedly the applicant provides the aforesaid services to Government of West Bengal. It is found that the first and second criteria i.e., the supply of services can be regarded as pure services and having been provided to the State Government get satisfied. Whether the said service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons prescribed by the West Bengal Authority for Advance Ruling Regulations, 2018. 1.1 At the outset, we would like to 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 an entity engaged inter-alia in the business as a provider of Designing and development of Web and mobile based applications; Designing and drawing of GIS mapping and analysis; Digital or Analog surveying; Relevant Data management, analysis and documentation and other technical consultancy services relating to water distribution networks for Directorate of Public Health Engineering across West Bengal. 1.3 The applicant has made this applica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... blic Health Engineering Department (PHED) was created as an independent full-fledged Department in 1987. Earlier, Health & Family Welfare Department of the State Government had a Public Health Engineering Wing. As per Rules of Business of the State Government, Public Health Engineering Department controls the Water Supply & Sanitation Budget of the State Government and undertakes programmes of implementation of water supply services mainly through Public Health Engineering Directorate under its administrative control. Therefore, main activities of PHED are now related to Rural Water Supply and Urban Water Supply in few limited areas of the State outside Kolkata Metropolitan Area (KMA), PHED also controls works of Hill Area Development so far as provision for water supply is concerned. 2.3 The main function of PHE Department within the jurisdiction of Rural Local Bodies is Supply of safe drinking water based on Ground Water / Surface Water / Sub-Surface Water / Based on other sources. Apart from rural water supply, PHE Department is also engaged in Urban Water Supply in few Municipalities, Mitigating Water Quality Related Issues, Monitoring & Surveillance of Water Quality (Chemical ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ese reports can be analyzed via a web-based desktop interface, utilizing predetermined user matrices for enhanced clarity and insight. The utilization of advanced GIS tools and analysis through WebGIS plays a pivotal role in the integration of technology for PHED data management. This mapping methodology serves the purpose of identifying the coverage of schemes, pinpointing areas that are yet to be covered, tracking the progress and achievements of various projects, and conducting comprehensive analyses pertaining to project monitoring across multiple dimensions. Sensors have been installed at critical points within the water supply infrastructure, such as Water Treatment Plants, Booster Pumping Stations, and Overhead Reservoirs in some mega piped water supply schemes. These sensors continuously monitor key parameters like water levels, discharge rates, and quality metrics. The data collected is fed into a centralized Management Information System (MIS) and a Command and Control Centre, where it is analyzed for strategic planning and operational improvements. This technological approach not only ensures efficient water distribution but also helps in promptly addressing any issues ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s follows: I. Upkeepment and Management of WB-JJM Applications and Dashboards through suitable Data Integration, Visualization and Customized Data Analysis. II. Restructuring, redesigning of Map Domain, Upload & hosting of high-quality maps in vector & raster format; with provision of user-friendly customized query as well as download option in various formats with respect to Piped Water Supply Schemes. III. Upgradation and Maintenance of Integrated Water Quality Management Information System (IWQ-MIS) for District Specific Dashboard of Nadia in collaboration with Maintaining of a technology-based Management Information System for Water Quality testing of potable water supplied through Functional Household Tap Connections (FHTCs) by means of pre-assigned multifarious sample collection criteria in WebGIS view and upload the water quality test results for flawless functioning of the system. IV. Updation of Scheme Level maps representing different features of Piped Water Supply Schemes and FHTCs in GIS environment and uploading the same in the PHED Web Module. V. Scrutinization, Analysis and Identification of Errors for 'Functional Household Tap Connection' data coll ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y 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. Nil Nil 2.8 It thus appears that for any services to be exempt from GST under sl. no. 3 above, the said services must satisfy the following conditions:- 1. It must be a pure service, 2. It must not be a works contract service or other composite supply of services involving transfer of goods, 3. It must be provided to Central Government, State Government or Union territory or local authority, 4. It must be an 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. Now, given the facts of the instant case, the applicant submits that as per the work orders issued by the PHE Department, the instant supply to the various divisions of the PHE Department are nothing but supply of services or rather composite supply of services. However, as the said composite supply of services involves no supply of goods, therefore the supply ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... description of work as stipulated above. 4.3 The applicant has enclosed one letter received from the office of Executive Engineer, Resource Division, Janasathya Karigari Bhawan (Nijalaya), Department of Public Health Engineering, Government of West Bengal wherein it was intimated that "as per the Govt. Notification No. 56/2017/25 dated 29th June 2017 & Notification No. 12/2017-State Tax rate vide no. 1136-E.T., 28th June, 2017 vide SI. No. 3, the rate of GST for the pure services rendered is NIL. The work entrusted to you comes under the purview of SI. No. (3) of the above mentioned notification and attract Nil, GST. In consonance with the above Notification, the GST claimed through the tax invoice for the services rendered is not admissible. Accordingly, Payment is required to be made excluding the GST component against the preferred claim." 4.4 The applicant contends that the aforesaid supply of services, being in the nature of pure services, gets covered under entry 3 of the Exemption Notification no. 12/2017-Central Tax (Rate) dated 28.06.2017 (as amended) since this supply is undertaken for PHE Department in relation to Article 243G and 243W of the Constitution of India. We ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Division of Public Health Engineering Directorate, Government of West Bengal, admittedly the applicant provides the aforesaid services to Government of West Bengal. We therefore find that the first and second criteria i.e., the supply of services can be regarded as pure services and having been provided to the State Government get satisfied. 4.8 Now the issue left with us is to decide whether the said services are in relation to any functions entrusted to a Panchayat under article 243G or to a municipality under article 243W of the Constitution of India. The functions entrusted to a Panchayat and to a municipality under article 243G and 243W of the Constitution along with eleventh and twelfth schedule are reproduced herein under for ease of reference: 243G: Powers, authority and responsibilities of Panchayats. -Subject to the provisions of this Constitution the Legislature of a State may, by law, endow the Panchayats with such powers and authority and 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 Panchayats, at the appropriate level, subject to such condit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es as maybe entrusted to them including those in relation to the matters listed in the Twelfth Schedule; (b) the Committees with such powers and authority as maybe necessary to enable them to carry out the responsibilities conferred upon them including those in relation to the matters listed in the Twelfth Schedule. Twelfth Schedule [Article 243W of the Constitution (Seventy-Fourth Amendment) Act, 1992]: 1. Urban planning including town planning. 2. Planning of land-use and construction of buildings. 3. Planning for economic and social development. 4. Roads and bridges. 5. Water supply for domestic, industrial and commercial purposes. 6. Public health, sanitation conservancy and solid waste management. 7. Fire services. 8. Urban forestry, protection of the environment and promotion of ecological aspects. 9. Safeguarding the interests of weaker sections of society, including the handicapped and mentally retarded. 10. Slum improvement and upgradation. 11. Urban poverty alleviation. 12. Provision of urban amenities and facilities such as parks, gardens, playgrounds. 13. Promotion of cultural, educational and aesthetic aspects. 14. Burials and burial grou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Nadia Division and Burdwan Division of the PHE Department are not independent entities; they are merely a divisional office of the Directorate of Public Health Engineering (PHED), Government of West Bengal. These divisions function under the State Government to manage public water distribution networks and related infrastructure within their geographical jurisdictions. Supply of services against work order issued by the said divisions would therefore be regarded as supply to the State Government. In view of the above discussions, we rule as under: RULING Q. 1 Whether based on the facts of the work orders entered between the applicant and Directorate of Public Health Engineering, Government of West Bengal, the services of Designing and development of Web and mobile based applications; Designing and drawing of GIS mapping and analysis; Digital or Analog surveying; Relevant Data management, analysis and documentation and other technical consultancy provided in relation to water distribution networks to the "Resources Division" be classifiable under sl. no. 3 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 (as amended)? Ans. Yes, on the basis of available ..... X X X X Extracts X X X X X X X X Extracts X X X X
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