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2021 (10) TMI 51 - AAAR - GSTExemption for legal services - Nirma University - Governmental Authority or not - exemption under Sr.No. 45 of the Notification No. 12/2017- Central Tax(Rate) dated 28th June, 2017 or under Sr.No.4 of Notification No. 12/2017- Central Tax (Rate) - requirement to be registered as a Deductor under GST as per the provision of Section 24 of the CGST Act or not - HELD THAT:- The condition mentioned in item (ii) of clause (zf) of para 2 of the Notification No. 12/2017-Central Tax (Rate) are applicable to both the items (i) and (ii) of the said clause - the condition that an authority / board / other body, to be qualified as ‘Governmental Authority’ should have been set up or established ‘with 90 per cent, or more participation by way of equity or control, to carry out any function entrusted to a municipality under article 243W of the Constitution or to a Panchayat under article 243G of the Constitution’, is applicable to both the items (i) and (ii) of definition of “Governmental Authority” at clause (zf) of para 2 of Notification No. 12/2017-Central Tax. The appellant has been set up under the Nirma University Act, i.e. an Act of the Gujarat Legislature, therefore it falls under item (i) of the definition of “Governmental Authority”. However, the appellant has not claimed to be satisfying the condition of 90 per cent or more participation by way of equity or control. The Nirma University Act contains provisions relating to ‘Funds of University’ in section 24 and provisions relating to composition of Board of Governors in section 10, which also do not indicate that the appellant is satisfying the condition 90 per cent or more participation by way of equity or control - thus, the appellant Nirma University cannot be termed as “Governmental Authority” within the definition of the said expression under clause (zf) of para 2 of Notification No. 12/2017-Central Tax. Nirma University is not eligible for claiming benefit of Sr. No. 45 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017, as amended and Notification No. 12/2017-State Tax (Rate) dated 30.06.2017, as amended - Services provided by Nirma University are not exempted under Sr. No. 4 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017, as amended and Notification No. 12/2017-State Tax (Rate) dated 30.06.2017, as amended.
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