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2021 (8) TMI 785 - AAR - GSTLocal Authority or not - levy of GST - procurement of security services received from any person other than body corporate under reverse charge mechanism - advertisement services or the service recipient of AJL is required pay GST under reverse charge mechanism - Deductor of tax or not - Local Authority or government entity/governmental authority? - applicability of sl. no. 3 of N/N. 12/2017 – Central Tax (Rate), sl. no. 3 of N/N.09/2017 – IGST (Rate) and N/N. 13/2017-Central tax (Rate) dated 28-06-2017. HELD THAT:- The funds of AJL has not been notified as local/ municipal funds by any Legislative Act passed by Gujarat legislature or by Gujarat Treasury Rules. Further, we do not find AMC to be the Central Government/ The State Government. We bear in mind that AJL has separate legal existence and is a legal person incorporated with Registrar of Companies with PAN no.AAGCA6478F. AJL is a Private limited Company and when Funds of any nature- be it local funds/ municipal funds or otherwise are granted to AJL, those funds in the hands of AJL become grants/ Revenue for AJL and unless the State Government notifies those grants or revenues now in the hands of AJL as a local/municipal fund, the grants/revenue of AJL does not merit to be termed local/municipal funds any longer - the AJL has neither been set up by an Act State Legislature nor been established by the State Government of Gujarat. Government is defined at section 2(53), CGST Act as Central Government and at Section 2(53) GGST as Government of Gujarat - there are no merit to consider AJL a Government authority/ Government entity. The applicant placed reliance on cases pertaining to different persons which have different constitution and establishment and are different from it in legality and as a person. Further as per law as stipulated in Section 103, CGST Act, Advance Rulings pronounced shall be binding only on the applicant who had sought it in respect of any matter referred to in Section 97(2) CGST Act for Advance Ruling and the concerned officer or the jurisdictional officer in respect of the applicant. The applicant without establishing that its revenues are notified as local/municipal funds by the competent authority cannot make a case by misplaced reliances on other Advance Rulings as per said section 97(2) CGST Act. Ahmedabad Janmarg ltd. is not a Local Authority - Ahmedabad Janmarg ltd is liable to pay GST on security services under RCM, as per relevant Notification - Ahmedabad Janmarg ltd is liable to pay GST on advertisement services supplied by it - Ahmedabad Janmarg ltd is not required to be registered as a Deductor under GST - Ahmedabad Janmarg ltd is not a Government Entity/ Governmental Authority.
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