TMI Blog2019 (10) TMI 944X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Government of Karnataka and is entrusted the work of creating assets in the State of Karnataka and hence is not a Governmental Authority as per the definition of the term - also the acivity is an activity related to the solid waste management which is a function entrusted to a Municipality under Article 243W of the Constitution - All the three conditions of notification satisfied - the services provided by the applicant to KRIDL are covered under the entry no.3 of Notification No. 12/2017- Central Tax (Rate) dated 28.06.2017 w.e.f. 25.01.2018. It can be seen from the nature of activity of the applicant that there is no involvement of goods and only services are provided. Further the supply is not a composite supply of goods and services . Hence the activity of the applicant is not covered under entry 3A of the Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 as amended by Notification No. 2/2018 - Central Tax (Rate) dated 25.01.2018. - KAR ADRG 101/2019, - - - Dated:- 27-9-2019 - SRI. HARISH DHARNIA, AND DR. RAVI PRASAD M.P. MEMBER Represented by: Sri Shankar. P GSTP, ORDER UNDER SECTION 98(4) OF THE CENTRAL GOODS SERVICES TAX ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shifting of refuse-derived fuel from Karnataka Compost Development Corporation waste processing plant to Bellahalli landfill site in Yelahanka. 3.3 Subsequently the BBMP has appointed Karnataka Rural Infrastructure Development Limited (KRIDL) for shifting the waste from KCDC plant to Yelahanka site. In the instant case, Karnataka Rural Infrastructure Development Limited (KRIDL) subcontracted the same work to applicant to shift the waste from KCDC plant to Yelahanka site. 3.4. The applicant has used Hitachi, ten wheeler tippers on hire basis to collect the waste from KCDC plant by using tarpaulin to cover the waste and unload the waste at a landfill site in Yelahanka and also do the leveling of the waste at the landfill site after unloading the waste. The effective control of the vehicle vested with the applicant and payment for the above service is received on the basis of number of loads transported from KCDC plant to Yelahanka landfill site at the end of the day. 3.5. The contention of the applicant is that this is service provided to KRIDL as government authority in relation to the activity specified in article 243W of the Indian Constitution as pure ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sought by the applicant, and relevant facts. 10.2 The applicant has placed four questions before this advance ruling authority. All the questions relate to the rate of tax applicable on the transaction and the relevant entry under which the exemption, if available, can be allowed. Hence all questions are merged into one and answered. 10.3 It is seen from the contracts between the BBMP and KRIDL which is named as Providing of Hydraulic Excavator for lowering and levelling at Bellahalli Landfill site for the inert shifted from KCDC near Yelahanka Bangalore and provision of Hydraulic Excavator and ten wheeler tippers to transport RDF inerts , the contract is for shifting the inert from the KCDC plant to the Yelahanka land filling site, compacting and filling it using machineries. The same is covered under different work orders. 10.4 The entire work involves only labour and services and does not involve any goods. It is a composite supply under the meaning of composite supply as defined in section 2(30) of the CGST Act involving only services. It is not a works contract as there is no supply of goods but only a supply of services, even if it is considered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... use (16) of section 2 of the Integrated Goods and Services Tax Act, 201 7 (13 of 2017) The Explanation to clause (16) of section 2 of the Integrated Goods and Services Tax Act, 2017 defines Governmental Authority as under: a Governmental Authority means an authority or a board or any other body, - (i) set up by an Act of Parliament or a State Legislature; or (ii) established by any Government, with ninety percent or more participation by way of equity or control, to carry out any function entrusted to a Panchayat under article 243G or to municipality under article 243 W of the Constitution. M/s KRIDL is established as a Company by the Government of Karnataka and is entrusted the work of creating assets in the State of Karnataka and hence is not a Governmental Authority as per the definition of the term. Further the issue whether KRIDL is a Government entity or not is examined. The term Government Entity is defined in clause (zfa) of paragraph 2 of Notification No. 12/2017 - Central Tax (Rate) as amended by Notification No.32/2017- Central Tax (Rate) dated 13.10.2017 as under: (zfa) Government ..... X X X X Extracts X X X X X X X X Extracts X X X X
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