Home Case Index All Cases GST GST + AAR GST - 2019 (10) TMI AAR This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (10) TMI 949 - AAR - GSTApplicability of GST - man power services provided to Karnataka Rural Road Development Agency - pure services or not - entry no. 3 of Notification No. 12/2017 - Central Tax (Rate) dated 28.06.2017 - Government or local authority or a Governmental Authority - whether the KRRDA is a Governmental Authority and whether the contract given by KRRDA to the applicant is in relation to the function entrusted to a Panchayat under article ‘243G of the Constitution or in relation to the function entrusted to a Municipality under article 243W of the constitution? HELD THAT:- The KRRDA is a Governmental Authority as it is involved in the creation of rural infrastructures like Roads in the villages which is a function entrusted to a Panchayat under Article 243W of the Constitution and is established by the Government - The words “in relation to” is defined in the Oxford Dictionary as to mean “in the context of’ or “in connection with”. When two activities are directly linked to each other, then they are said to be in connection with or in the context of. The activity of providing manpower like Data Entry Operators, Field Engineers, Diploma Field Engineers, Senior Software Professionals, Software Engineers for IT Cell, Graduate Assistant, Office Assistant, Peon and Watchman are to manage the back end work and managing the offices of the KRRDA and hence are not involved directly in the activity of maintaining or construction of roads. This activity is not directly connected to the work entrusted to a Panchayat under Article 243G of the Constitution, is only for a support service which is not project specific and hence cannot be considered to be “by way of an activity in relation to a function entrusted”. The contract of the applicant with KRRDA cannot be covered under the entry no. 3 of the Notification No. 12/2017 - Central Tax (Rate) dated 28.06.2017.
|