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2021 (9) TMI 1066 - AAR - GSTGovernment entity or not - Maharashtra Jeevan Pradhikaran (MJP) - Scope of service under the agreement between MDE and MJP - work intended to be carried out by MDE qualifies for exemption as per notification 12/2017-central Tax (Rate) dated 28.06.2017 or not - requirement on the part of MDE to obtain registration under GST law - HELD THAT:- Maharashtra Jeevan Pradhikaran (MJP) clearly cannot be considered as a Central Government, State Government or Union territory or local authority - Maharashtra Water Supply and Sewerage Board (MWSSB) was established as per MWSSB Act 1976 for Rapid development and proper regularization of water supply and sewerage services in the State of Maharashtra, by the Government of Maharashtra. MWSSB was subsequently named as Maharashtra Jeevan Pradhikaran in 1997 - the Maharashtra Jeevan Pradhikaran is also seen to be under the control of the Government of Maharashtra. MJP is constituted and established by the State Government of Maharashtra with 100% participation by way of Equity or Control to carry out the function entrusted to it by the State Government viz. rapid development and proper regularization of water supply and sewerage services in the State of Maharashtra and therefore MJP is clearly covered under the definition of ‘Government Entity’ as can be seen from the definition of a `Government Entity’ - the applicant is supplying pure services to a Government Entity and therefore as per the provisions of Notification No. 12/2017, the said services supplied by the applicant are exempted from GST. If it is concluded from the above that the supplies made or proposed to be made by MDE to MJP qualifies for exemption then the consequent question is whether MDE requires to obtain registration under GST law? - HELD THAT:- The applicant would be liable to obtain GST registration only if it supplies taxable good or services or both, in view of Section 22(1) and in view of Section 23 (1) (a), no registration is required to be obtained by the applicant when it exclusively supplies goods or services or both that are not liable to tax or wholly exempt from tax under the CGST Act, 2017 or under the IGST Act, 2017. It is not mandated to take GST registration based on the contract with MJP, since the services rendered are Exempt service. However, there is nothing forthcoming in the application made by the applicant that they are only rendering services to MJP, under the impugned contract, which has been held to be exempt under the provisions of Notification 12/2017 mentioned above and not supplying any other taxable goods or services or both - However, other than the exempt services supplied under the impugned contract with MJP, if the applicant is engaged in supply of any taxable supply of goods or services or both, then the provisions of Section 22 of the CGST Act would come into play and it would be liable to obtain registration on attaining/crossing the threshold limit mentioned under Section 22 of the CGST Act, 2017.
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