TMI Blog2018 (9) TMI 1037X X X X Extracts X X X X X X X X Extracts X X X X ..... the Governments and Local Authorities and does not cover any activity where in transfer of property in goods is involved either in the form of a works contract or a composite supply. The activity done by the applicant is of the nature of “maintenance of parks” and hence the activities can be divided into two different types: (a) maintenance of parks not involving the transfer of property in goods And (b) maintenance of parks involving the transfer of property in goods. The first activity is of the nature of pure services and is squarely covered under the entry no. 3 of the Notification No. 12/ 2017 Central Tax (Rate) dated 28th June 2017, if it is provided to a Government or Local Authority and Governmental authority - The second act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... agh, Bengaluru 560 004, having GSTIN number 29AABAT4416F1ZK, has filed an application for Advance Ruling under Section 97 of CGST Act,2017, KGST Act, 2017 IGST Act, 2017 read with Rule 104 of CGST Rules 2017 KGST Rules 2017, in form GST ARA-01. At the time of filing of application, they had not discharged the fee and subsequently on 14.12.2017, they have discharged the fee of ₹ 2,500-00 each under the CGST Act and the KGST Act. Later on 22.01.2018, they have made the payment of a fee of ₹ 2,500-00 each under the CGST Act and the KGST Act. They also enclosed copy of challans. 2. The Applicant is a society, which is a wing of Horticulture Department of Government of Karnataka and is registered under the Co-operative Socie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ting unwanted weeds and plants, digging the soil, and levelling of ground and plating small shrubs, flowering plants and grass, etc. ii. Digging cleaning and levelling of the land is purely a earthwork and it is not exigible to sales tax. Similarly the sale of plants is also exempted from tax and hence the work of landscaping does not involved any taxable transactions. iii. In view of the above, the authority rules that the work of landscaping undertaken by the society was not liable to tax under the provisions of the Karnataka Sales Tax Act and if there was any other transfer of property, the same would attract tax appropriately. c. The applicant has also stated that Services by a governmental authority by way of any acti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd consolidation and soil conservation are all covered under entry no. 2 and Maintenance of community assets is covered under entry no. 29. Park being a community asset is covered under article 243G. He also produced a copy of the Twelfth Schedule and stated that Provision of urban amenities and facilities such as parks, gardens, playgrounds are covered under entry no. 12. He stated that the development and maintenance of parks are assigned to Urban Local bodies and hence pure services provided to a local authority (i.e. Bruhat Bengaluru Mahanagara Palike) is covered under entry no. 12/2017 Central Tax (Rate) dated 28.06.2017 and hence is exempt. He also stated that the same services are not exempt if they are effected on behalf of KSRT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ply Section 2(30) of CGST Act defines composite supply to mean 'a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply'. Section 2(90) defines principal supply as -principal supply means the supply of goods or services which constitutes the predominant element of a composite supply and to which any other supply forming part of that composite supply is ancillary'. 6.5 Concept of works contract Works contract has been defined under Section 2 (119) of CGST Act as follows: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... covered under the entry no. 3 of the Notification No. 12/ 2017 Central Tax (Rate) dated 28th June 2017, if it is provided to a Government or Local Authority and Governmental authority. The second activity falls in the ambit of works contract and hence is not covered under the entry no. 3 of the Notification No. 12/ 2017 Central Tax (Rate) dated 28th June 2017 even if it is provided to a Government or Local Authority and Governmental authority. 10. Further, in the question raised, whether the KSRTC and other entities fall under the Government departments, the learned representative, at the time of personal hearing has accepted that they are not covered under the entry no. 3 of the Notification No. 12/ 2017 Central Tax (Rate) dated 28th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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