TMI Blog2018 (12) TMI 894X X X X Extracts X X X X X X X X Extracts X X X X ..... ould in detail give the exact nature of activities being done by them and which would be very crucial in deciding whether the services being provided by the applicant are in the nature of Pure Services or Works Contract Services. The services being provided by the applicant to MCGM are in the nature of Works Contract Services and therefore they would in no way be eligible for exemption under Sr. No. 3 of Notification No. 12/2017-CT (Rate) dated 28.06.2018, in respect of pure services. Ruling:- The applicant shall charge GST on the consultancy services rendered to Municipal Corporation of Grater Mumbai (MCGM) for an upcoming project of establishment & development of textile museum in Mumbai. - GST-ARA-54/2018-19/B-128 - - - Dated:- 12-10-2018 - SHRI B.V. BORHADE, AND SHRI PANKAJ KUMAR, MEMBER PROCEEDINGS (Under section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017) The present application has been filed under section 97 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017 [hereinafter referred to as the CGST Act and Act ] by SIR J.J. COLLEGE OF ARCHITECTU ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment, the textile museum is treated as part of the recreational ground area and ancillary facilities of recreation like exhibition of textile related activities, fabrics machinery, processes, fashion show, souvenir shops, cafeteria, spill out zones, light sound shows, etc. have been allowed to developed in the said area. Statement containing the applicant s interpretation of law and or facts as the case may be, in respect of the aforesaid question(s) a. Applicability of CST on provision of consultancy service to MCGM - As per the provision of GST law, the GST is applicable on supply of goods/ services. The consultancy services provided to MCGM is a supply for consideration. However, there is exemption provided via notification no. 12/2017- Central tax (rate) dated 28th June, 2017 in respect of services provided to central government, state government or union authority or local authority or a government authority. The relevant entry is reproduced as below - Pure Service (excluding works contract service or other composite supplies involving supply of any goods) provided to central government, state government or union authority or local authority or a government auth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt authority by way of any activity in relation to any function entrusted to a Panchayat under article 243G of the Constitution or in relation to any function entrusted to a Municipality under article 243W of the Constitution. Agreement made between J.J. College of Architecture Consultancy cell and Municipal Corporation of Greater Mumbai (MCGM) is under Article 63/ 63 Works Contract, so GST is applicable. Other information is enclosed herewith. (Annexure, Form no. ST-2) Copy of Article 63/63 Works contract agreement 04. HEARING The case was taken up for Preliminary hearing on dt. 08.08.2018 when Sh. Kushal Mehta, C.A. along with Sh. Sumesh Porwal, C.A. appeared and made written submissions and stated that they were not carrying authorization today and would be submitting the same at the earliest . Sh. Sanjay Sawant, Executive Engineer, BMC was also present. Jurisdictional Officer, Sh. Shrikant Biwalkar, State Tax Officer (C-602), Nodal division - 1, Mumbai appeared and stated that they would be making submissions in due course. The application was admitted and called for final hearing on 05.09.2018, Sh. Kushal Mehta, C.A. along with Sh. Sumesh Porwal, C.A. an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... supplies involving supply of any goods) provided to the Central Government, State Government or Union Territory or local authority or a Governmental authority by way of any activity in relation to any function entrusted to a Panchayat under Article 243G of the Constitution or in relation to any function entrusted to a Municipality under Article 243W of the Constitution NIL NIL In continuation to the above, we also find that the applicant in their ARA have stated that Establishment and Development of a museum and recreation ground is not considered as a function entrusted to a Municipality under Article 243 of the Constitution. Since Establishment and Development of a museum and recreation ground is not a function listed in in the 12th Schedule to be read with Article 243 of the Constitution, the applicant has stated that in their view JJ is required to charge GST on consultancy services rendered to MCGM for the above project work, under GST laws. Thus in view of the above facts we are required to ascertain if the applicant s services are eligible for exemption as per the Serial No 3 of the Notification referred above. For this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... grounds and electric crematoriums. 15. Cattie pounds; prevention ofcruelty to animals. 16. Vital statistics including registration of births and deaths. 17. Public amenities including street lighting, parking lots, bus stops and public conveniences. 18. Regulation of slaughter houses and tanneries. Thus in view of the above referred legal provisions that would require examination in respect of eligibility of the applicant in respect of exemption as referred in Notification No. 12/ 2017-CT(Rate) dated 28.06.2018, we first of all examine the exact nature of services being provided by the applicant to MCGM. We find that the applicant in their submissions have details of the activities to be undertaken by them as under:- Currently, JJ has entered into an agreement with Municipal Corporation of Greater Mumbai (MCGM) for an upcoming project of establishment development of textile Museum in Mumbai where JJ has to provide comprehensive Architecture service and project management service that includes architecture service and MEP design, reviewing tender document for inviting contractors, site supervision and certifying bills of contractors paid by MC ..... X X X X Extracts X X X X X X X X Extracts X X X X
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