TMI Blog2019 (6) TMI 549X X X X Extracts X X X X X X X X Extracts X X X X ..... nvolved, species or type of fish, area of water or seabed method of fishing, class of boats, the purpose of the activities or a combination of the preceding features. The occupation of fishing and fishermen are included in the ambit. The up-gradation of Jalda Kothi Landing Centre and the related work that has been awarded to the Applicant has a direct nexus with fisheries development, as evident from a reference in the reports mentioned in para 2.4 to the mass petition of the fishermen. It is, therefore activity in relation to the development of fisheries - a function listed under Sl No. 4 of the Eleventh Schedule, and, therefore, entrusted to a panchayat under Article 243G of the Constitution of India. Exemption under Sl No. 3A of the E ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ether an exemption under Sl No. 3A of Notification No 9/2017 - Integrated Tax (Rate) dated 28/06/2017 (hereinafter the Exemption Notification), as amended by Notification No. 2/2018 dated 25/01/2018 Integrated Tax (Rate) dated 25/01/2018, applies to the above supply. 1.2 The question is admissible under section of CGST Act 2017/WBGST Act, 2017 (hereinafter collectively called GST Act 2017) read with clause (xviii) of section 20 of IGST Act, 2017. The concerned officer from the Revenue has not objected to the admission of the application and informs that the issued raised by the Applicant is not pending or decided in any forum. 1.3 The application is, therefore, admitted. 2. Submissions of the Applicant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s a copy of the report by the recipient on Jalda Khoti Landing Center. Based on these two reports, the Applicant argues that the work undertaken is in relation to a function entrusted to a Panchayat under Article 243G of the Constitution of India. 3. Submission of the concerned officer from the Revenue 3.1 The concerned officer from the Revenue has refrained from offering any comment on the merit of the issue. 4. Observations and findings of the Bench 4.1 In its Circular No. 51/25/2018-GST dated 31/07/2018 the Central Government clarifies that the service tax exemption at serial No. 25(a) of Notification No. 25/2012 dated 20/06/2012 (hereinafter the ST Notification) has been substantially, althoug ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is in relation to any such function, the supply to the governments or governmental authorities/entities or local authorities is exempt from paying GST under Sl No. 3 or 3A of the Exemption Notification, provided it is a pure service or a composite supply where supply of goods does not constitute more than 25% of the value. 4.3 The Applicant's eligibility under Sl No. 3A of the Exemption Notification should, therefore, be examined from three aspects: (1) whether the supply being made is a composite supply, where supply of goods constitutes not more than 25% of the value of the composite supply, (2) whether the recipient is government, local authority, governmental authority or a government entity, and (3) whether the supply is i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore deciding the applicability of Sl No. 3A of the Exemption Notification, the functions of a panchayat under the Constitution needs to be discussed. Article 243G of the Constitution discusses the powers, authority and responsibilities of Panchayats. It states, Subject to the provisions of this Constitution the Legislature of a State may, by law, endow the Panchayats with such powers and authority as may be necessary to enable them to function as institutions of self-government.. subject to such conditions as may be specified therein, with respect to, the implementation of schemes for economic development and social justice as may be entrusted to them including those in relation to the matters listed in the Eleventh Schedule, which contai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 16 Non-conventional sources of energy 17 Technical training and vocational education 18 Adult and non-formal education 19 Public distribution system 20 Maintenance of community assets 21 Welfare of the weaker sections of the in particular of the schedule caste and schedule tribes 22 Social welfare, including welfare of the handicapped and mentally retarded 23 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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