TMI Blog2022 (2) TMI 842X X X X Extracts X X X X X X X X Extracts X X X X ..... rd that MPMKVVCL is set up by an Act of Parliament or State Legislature. As such, we hold that MPMKVVCL is not a Govt. entity - although there is no such mention on the website of MPPKVVCL it is all likelihood that the same is also presently not an establishment with 90 per cent or more participation by way of equity or control, to carry out a function entrusted by the State Government like MPMKVVCL. There is also nothing on record that MPPKVVCL is set up by an Act of Parliament or State Legislature. Further, the Chief Financial Officer, MPPKVVCL, Indore in his GST Circular-11 issued under F.No. MD/WZ/02/Tax/259/9425 dated 10.05.2018 has only given the definition of 'Government Entity' and declared the Company as Government Entity without giving any criterion of the applicability of the said definition on the Company. As such, we hold that MPPKVVCL also is not a Govt. entity. Although it is accepted that rural electrification including distribution of electricity is covered in function entrusted to a Panchayat but we are of the view that the invoices issued to the Executive Engineer, MPPKVVCL or GM, MPMKVVCL by the applicant with description of supply of manpower (Rural ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nstitution? And, whether this services i.e. taking reimbursement of expenses for deployed Manpower is NIL rated supply in GST? 3. The applicant have submitted statement of facts in Form GST ARA-01 as under- (i) the applicant is a Central Public Sector Enterprise under Ministry of Information Broadcasting and was established on 24th March, 1995 under the Companies Act, 2013 with 100% equity share capital held by Govt. of India. (ii) the applicant was awarded contract from Madhya Pradesh Paschim Keshetra Vidyut Vitaran Company Limited (Govt. Entity) for providing skilled, semi-skilled and Unskilled manpower for miscellaneous work under the three circles, AGAR, JHABUA SHIVPURI. (iii) the applicant are deploying manpower to the government entity as under- SI.No. Name of party Division Constitution of party 1 Madhya Pradesh Paschim Keshetra Vidyut Vitaran Company Limited-O M Circle-Agar Agar and Susner Rural Electrification or Distribution of Electricity 2 Madhya ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r jurisdiction of SE O M/City Circle Jhabua 3 MPMKVV Co. Ltd, Bhopal 8062 31.03.2021 Work Order for outsourcing of manpower required for misc work in O M Circle Shivpuri 4.2 The applicant had enclosed following Invoices alongwith the application of advance ruling- SN Tax Invoice issued by applicant to Invoice No. Date Particulars 1 Ex. En.. MPPKVV Co Ltd, Agar BE/MP/20/21-22 19.06.2021 Cost of Skilled, Semi-skilled. unskilled employees (Urban) and BECIL Commission 2 Ex. En., MPPKVV Co Ltd, Susner BE/MP/17/21-22 19.06.2021 Cost of Skilled, Semi-skilled, unskilled employees (Rural) and BECIL Commission 3 Ex. En., MPPKVV Co Ltd, Susner BE/MP/18/21-22 19.06.2021 Cost of Skilled, Semi-skille ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i.e. the total bill amount inclusive of amounts paid under any head name and further Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 is in relation to the construction services only and is not applicable to the present case. The Assistant Commissioner, CGST Division-II, Noida vide his C.No. V(30)TECH./D-II/Misc Correspondence/205/2020 dated 09.12.2021 has submitted that no proceedings are pending or decided on the question raised by the applicant. 7. The applicant was granted a personal hearing on 06.12.2021 which was attended by Shri Mukesh Gupta, Chartered Accountant and Shri Mayank Gupta, Account Executive during which they reiterated the submissions made in the application of advance ruling and submitted copy of letter C.No. 361/9700/Bills/2340 dated 11.11.2021 of Senior Accounts Officer, MPPLVVCL, Ujjain and GST Circular-11 dated 10.05.2018 issued by the Chief Financial Officer, MPPKVVCL, Indore wherein it is mentioned that- (i) services which are received within the area of gram panchayat are exempt from GST. (ii) in view of definition of Government entity, the company is Govt. entity. DISCUSSION AND FINDING 8. At the outset, we would like ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n charges taxes. Further, in the tax invoice raised by the applicant, there is mention of cost of employees and the commission and there is no mention of EPF/ESIC/WC contribution on the invoice. 13.1 Now, we first proceed to examine applicability or otherwise the benefit of exemption contained in sl. No. 3 of the Notification No. 12/2017-CT (Rate) dated 28.06.2017 as amended by notification No. 2/2018-Central tax (Rate) dated 25.01.2018 to the applicant. The same is reproduced below- Sl.No. Chapter, Section, Heading, Group or Service Code (Tariff) Description of Services Rate (per cent.) Conditions 1 2 3 4 5 3 Chapter 99 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 or a Governmental Authority or a Government Entity by way of any activity in relation to any function entru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2002SGC015119. The Government of Madhya Pradesh vide its order no. 2671/12/13 dated 29th March 2012 had transferred all the shares of the Company to M P. Power Management Company Limited and subsequently, our Company is now a subsidiary of M P. Power Management Company Limited, Jabalpur. 13.6 We find that the website of MPMKVVCL has clear mention that Govt. of MP vide its order dated 29.03.2012 had transferred all the shares of the company to MP Power Management Company Limited and subsequently their company is now a subsidiary of MP Power Management Company Limited. As such, it is abundantly clear that MPMKVVCL is presently not an establishment with 90 per cent or more participation by way of equity or control, to carry out a function entrusted by the State Government. There is also nothing on record that MPMKVVCL is set up by an Act of Parliament or State Legislature. As such, we hold that MPMKVVCL is not a Govt. entity. 13.7 We are of the view that although there is no such mention on the website of MPPKVVCL it is all likelihood that the same is also presently not an establishment with 90 per cent or more participation by way of equity or control, to carry out a functi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Non-conventional energy sources; Poverty alleviation programme; Education, including primary and secondary schools; Technical training and vocational education; Adult and non formal education; Libraries; Cultural activities; Markets and fairs; Health and sanitation, including hospitals, primary health centers and dispensaries; Family welfare; Women and child development; Social welfare, including welfare of the handicapped and mentally retarded; Welfare of the weaker sections, and in particular, of the Scheduled Castes and the Scheduled Tribes; Public distribution system; Maintenance of community assets. 13.9 Although we accept that rural electrification including distribution of electricity is covered in function entrusted to a Panchayat but we are of the view that the invoices issued to the Executive Engineer, MPPKVVCL or GM, MPMKVVCL by the applicant with description of supply of manpower (Rural) is not a sufficient document to conclude that the manpower will be actually used for distribution of electricity in rural area as a sub-station supplying electricity covers large area which include rural as well as urban area. 13.10 As such, we are of the view that the applicant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 15 of the CGST Act: 1.5. Value of taxable supply (1) The value of a supply of goods or services or both shall be the transaction value, which is the price actually paid or payable for the said supply of goods or services or both where the supplier and the recipient of the supply are not related and the price is the sole consideration for the supply. (2) The value of supply shall include- (a) any taxes, duties, cesses, fees and charges levied under any law for the time being in force other than this Act, the State Goods and Services Tax Act, the Union Territory Goods and Services Tax Act and the Goods and Services Tax (Compensation to States) Act, if charged separately by the supplier; (b) any amount that the supplier is liable to pay in relation to such supply but which has been incurred by the recipient of the supply and not included in the price actually paid or payable for the goods or services or both; (c) incidental expenses, including commission and packing, charged by the supplier to the recipient of a supply and any amount charged for anything done by the supplier in respect of the supply of goods or services or both at the time of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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