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2019 (10) TMI 1389 - AAR - GSTServices by way of Independent Consultancy Services provided or to be provided by the Applicant to Public Works Department, Gurgaon as per Request for Proposal (REP) (submitted with this Authority) for design, Engineering, Finance, Construction, Operation and Maintenance of Gurgaon- Faridabad and Ballabhgarh-Sohna Roads on BOT basis - Pure Services or not - Public Works Department (PWD), Haryana - Government Entity or not - Whether the pure services received by the PWD fall under Serial No. 3 of Notification No. 12/2017 Central Tax (rate) dated 28.06.2017? - whether, the Applicant is within its rights under the CGST and HGST Acts for charging GST to the Service Recipient on the service value for the services provided as per RFP or not? HELD THAT:- Although “Pure services” have not been defined under the Goods and Services Tax Act, 2017, but it is meant to mean supply of services without involving any supply of goods. Entry No. 3 of Notification 12/2017- Central Tax (rate) dated 28.06.2017 lends weight to this definition, whereby the works contract services and composite supplies involving supply of any goods are excluded from pure services - The engineering consultancy services which involve preparation of detailed project report, city development plans, designs and drawings and supervision thereof, for projects in different parts of the country for construction of Roads and Bridges, Solid Waste Management, Water Supply and Sanitation, Urban Development, Buildings and Environment offered by the applicant does not involve any supply of goods and such it is a “pure service”. “Government Entity”, as per Section 2(zfa) of the Notification No. 12/2017- Central Tax (Rate) dated 28.06.2017, means an authority or a board or any other body including a society, trust, corporation, (i) set up by an Act of Parliament or State Legislature; or (ii) established by any Government, with 90%. or more participation by way of equity or control, to carry out a function entrusted by the Central Government, State Government, Union Territory or a Local Authority.” - The Public Works Department, Haryana is a Department of the State Government, established by the State Government, with the state having full control over its functioning and is carrying out functions entrusted by the State Government. Thus, the Public Works Department, Haryana is a Government Entity as per the definition of Government Entity as contained under Section 2(zfa) of the Notification No. 12/2017 Central Tax (Rate), dated 28.06.2017. Both the Municipalities and Panchayats have their territorial jurisdiction. They do not exercise extra-territorial jurisdiction - The engineering services offered/ provided by the applicant to the PWD, a department of the State Government, are with respect to Gurgaon-Faridabad and Ballabhgarh- Sohna roads, which are beyond the territorial limits of a Panchayat or Municipality, as has been admitted by the applicant in its written submission. As such the services of the applicant are not in relation to functions entrusted to the Panchayats or the Municipalities under the XI or the XII Schedule of the Constitution of India, as the case may be.
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