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2021 (8) TMI 187 - AAR - GSTDeduction of tax (GST) at source (TDS) - Government Entity or not - National Institute of Technology, Tiruchirappalli (NITT) - reverse charge mechanism - supply of services - Sl.No. 3, 3A of N/N. 12/2017 - Composite supply of works contract provided to the applicant - Sl.No.3 (vi) of N/N. 11/2017 dated 28.06.2017. HELD THAT:- The applicant, National Institute of Technology, Tiruchirappalli( NITT) was started as a joint co-operative venture of the Government of India & Government of Tamil Nadu in 1964 with a view to catering to the needs of man-power in technology for the country. NITT is covered under the National Institute of Technology Act, 2007. In the course of discharging the functions as per the NIT, 2007, the applicant engages suppliers to provide certain services like pure labour services and supply of composite services. It is apparent from the above that as per Section 9(3), the provisions of the Act is applicable to recipient as if he is the person 'liable for paying the tax in relation to supply of such goods or services or both' and the provisions of 'Advance Ruling' is applicable to an applicant only with regard to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant - advance ruling cannot be sought by a person who is a recipient of the supply of goods or services, when the ruling sought relates to the classification/taxability of such supply received by them. However, the expression, 'unless the context otherwise requires' read with Section 9(3) provides for admission of application from service recipients in cases where the question relates to determination of the liability to pay tax on any goods or services. The applicant institute was originally established in the year 1964 as a society registered with the Registrar of Societies, Tamilnadu under the auspices of the Ministry of Human Resources Development with the Minister of HRD being the Chairman, Board members will be Education Secretary of Ministry of HRD, Principal Advisor, Planning commission, Secretary, Chairman, UGC, Department of Science& Technology. Director General of CSIR will be the educational advisor and financial advisor will be from Ministry of HRD, two representatives from Industry will be nominated by the Central Government. The NIT Act, 2007 enacted wherefrom the applicant becomes an entity set up by an Act of Parliament in as much as the said Act in S.3 (c) defines 'corresponding institute' as that specified in Column 3 of the schedule i.e., National Institute of Technology, Tiruchirapalli, a society registered under the Tamilnadu Societies Registration Act, 1975 and 'Institute' under the Act specified in Column 3 of the Schedule i.e, National Institute of Technology, Tiruchirapalli - the institute initially and also after the enactment of the NIT Act, has been receiving funds from the central Government by way of fund which substantiates the requirement of more than 90% financial participation from the central or state Government. Thus the NITT satisfies the conditions prescribed to be held as 'Government entity' under the CGST Act, 2017. Whether the applicant is liable to deduct Tax, as per section 51 of the CGST Act, 2017? - HELD THAT:- The applicant is liable to deduct tax at source (TDS) under Section 51 of the CGST Act, 2017 read with N/N. 50/2018-C.T dt.13.09.2018. Whether the applicant is liable to discharge tax on reverse charge basis on supply of services as per Section 9 (3) of the CGST Act, 2017? - HELD THAT:- The applicant has not submitted the list of all the service providers along with their constitution as called for during the hearing and thereafter. Thus, the applicant has not furnished the list of providers of security services other than the one mentioned above. Hence in respect of security services being received from a body corporate the applicant is found not to be liable under RCM to pay tax as per the documentary evidences submitted by them. Application not admitted.
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