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2022 (2) TMI 1155 - AAR - GSTExemption from GST - Pure Services, supplied by M/s GITEC-IGIP, GmbH, Cologne, Germany, having an office at Chennai, by way of rendering Consulting Services for Programme Management and Accompanying Measures for implementation of Integrated Strom Water Drain for M1 & M2 Components of Kovalam Basin in the extended area of Greater Chennai Corporation, supplied to the Superintending Engineer, Strom Water Drain Department, Greater Chennai Corporation, Chennai - applicability of S.No.3 of the Notification No.12/2017-Central Tax (Rate) dated 28.06.2017 - HELD THAT:- The applicant under the contract is tasked with providing various activities of technical expertise, financial planning, training, supervision, etc, which are supply of various services for effective implementation of the project and as seen from the submissions, the activity does not involve 'Supply of any Goods'. Also, it is seen that the project undertaken is in relation to improving the 'Storm Water Drain' along the Kovalam basin, as a part of 'Urban Infrastructure Development' of the Greater Chennai and the services are provided to the Greater Chennai Corporation represented by its Storm Water Division. Whether the entry at Sl.No. 3 of Notification No. 12/2017-C.T.(Rate) dated 28.06.2017 in respect of CGST and Sl.No. 3 of Notification No.II(2)/CTR/532(d-15)/2017 dated 29.06.2017 in respect of SGST is applicable? - HELD THAT:- 'Pure Service' is not defined under GST and the same can be constituted in general term as any supply made without involvement of supply of goods along with supply of services. The detailed scope of consultancy services have been provided in the Terms of Reference, page 138 to 189 of consulting services contract agreement dated 03.12.2020 submitted by the applicants - the consultant have to prepare operation and maintenance manual, carry out citizen awareness campaigns, collaborate public and private storm water stakeholders and also involve civil society in the maintenance of assets created out of the project investments. In both cases, pure services are involved in the form of knowledge enhancement and efficiency enhancement and there is no procurement of goods in the Consultancy Services. The consultants are not required to do any construction services. It is therefore ascertained that the services provided by the applicants to the GCC as per the Contract are only 'Pure Services' - the GCC being a Municipal Corporation, constituted by the State, is a “Local authority” by the definition of 'local authority' at S.2(69) of the GST Act and the services rendered by the applicants are the services rendered to a local authority. Whether the services are provided in relation to activities entrusted to a Municipality under Article 243 W of the Constitution? - HELD THAT:- From the `Overall Programme Concept' found in the contract, the project is undertaken as a part of the Programme “Sustainable Urban Infrastructure Development” in India; and this commitment, to be implemented with the support of a Programme Management Consultant (PMC) shall be used to finance stormwater management measures for Kovalam Basin and Accompanying Measures(AM) to support the sustainability of the Programme. Thus, it is established that the project is undertaken to improve the 'urban Infrastructure of the Chennai City'. 'Urban Planning' is one of the activities stipulated under the 'Twelfth Schedule' of the Constitution. Therefore, the activities of the applicant are 'in relation to' the activity of 'Urban Planning', an activity under Article 243W of the Constitution. The applicants are providing “Pure Services”, by way of rendering Consulting Services. for Programme Management and Accompanying Measures for implementation of Integrated Strom Water Drain for M1 & M2 Components of Kovalarn Basin in the extended area of Greater Chennai Corporation and the same is supplied to GCC, who is a “Local Authority”, represented by the Superintending Engineer, Strom Water Drain Department, Greater Chennai Corporation, Chennai. Also, the services are in relation to Entry No.1 of the List as per the Twelfth Schedule under Article 243W of the Constitution of India i.e., Urban Planning including Town Planning - the applicant is eligible for the exemption claimed for such pure services.
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