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2020 (3) TMI 444 - AAR - GSTPure services or not - supply and distribution of electricity - work of distribution of electricity and electrification work in rural area also - exempt services or not - Government Entity or not - Applicability of provision of S. No. 3 of the table of Notification no. 12/2017, Central Tax (Rate), Dated - 28/06/2017 - HELD THAT:- Exemption from GST is granted under Serial No 3 to the Pure services (excluding works contract service or other composite supplies involving supply of any goods) provided to the Central Government, State Government or Union territory or local authority or a Governmental authority or a Government Entity by way of any activity in relation to an function entrusted to a Panchayat under article 243G of the Constitution or in relation to an function entrusted to a Municipality under article 243W of the Constitution - Pure service is not defined in the GST Act. However, it appears from the context that services involving no supply of goods are considered as pure service. The Applicant claims that the service received from M/s. Primeone work force private limited does not involve supply of any goods while provisioning the services. Thus services are therefore, classifiable as pure service. The Government of Madhya Pradesh is having full control over the applicant M/S M.P. Paschim Kshetra Vidyut Vitran Co. Ltd. and the applicant is covered under the definition of Government Entity. The work entrusted to the applicant as mentioned above is covered under the article 243G of the constitution as the function entrusted to the Panchayat i.e., Rural Electrification including distribution of Electricity. However, the applicant work is not covered under Article 243W of the constitution as the function entrusted to the municipality. It is concluded that the services received by the applicant from M/s. Primeone work force Pvt. Limited fulfills the requisite criteria mentioned in S. No. 3 of the notification no. 12/2017 - Central Tax (Rate), Dated - 28/06/2017 as amended from time to time and eligible for claiming benefit available under the said provision. But the benefit can be availed only in case of where services mentioned in S. No. 3 is received in area covered under Panchayat limits as the entrusted work is covered under article 243G of the constitution and not under article 243W of the constitution.
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