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TMI Blog2020 (3) TMI 444X X X X Extracts X X X X X X X X Extracts X X X X ..... er referred to as the Applicant) is engaged in supply and distribution of electricity. The Applicant is having a GST registration with GSTIN 23AADCM7397N1ZU. 2. The provisions of the CGST Act and MPGST Act are identical, except for certain provisions. Therefore, unless a specific mention of the dissimilar provision is made, a reference to the CGST Act would also mean a reference to the same provision under the MPGST Act. Further, henceforth, for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST or MP GST Act would be mentioned as being under the GST Act. 3. BRIEF FACTS OF THE CASE- 3.1 M/s. Madhya Pradesh Paschim Kshetra Vidyut Vitran Company Limited (herein after referred to as the applicant) i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ower management Co. ltd. Is wholly owned by the Government of Madhya Pradesh. 6.3 Thus, the Government of Madhya Pradesh is having full control over MPPKVVCL and covers under Government Entity. 6.4 Further, the Government of Madhya Pradesh has entrusted the Company to carry out function of supply and distribution of Electricity in the area of Indore and Ujjain Commissionerate vide order no. 5555/RS/4/13/2001, Bhopal, Dated - 01/07/2002. 6.5 The Government of India, vide notification no. 12/2017 - Central Tax (Rate), Dated - 28th June 2017 notify the exempted services. Under this notification at S.no. 3 Pure Services (excluding works contract service or other composite supplies involving supply of any goods) provided to the Central Govern ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 17 - Central Tax (Rate), Dated - 13/10/2017, the definition of Government entity was inserted, which is reproduced as under - "Government Entity" means an authority or a board or any other body including a society, trust. corporation, i) set up by an Act of Parliament or State Legislature; or ii) established by any Government, with 90 per cent. or more participation by way of equity or control, to carry out a function entrusted by the Central Government, State Government, Union Territory or a local authority. 6.8 Further, Vide notification no. 02/2018 - Central Tax (Rate), Dated - 25/01/2018, makes following amendment in the Notification no. 12/2017 - Central Tax (Rate), dated -28/06/2017 - (a) Against serial number 3, in the ent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or a Governmental authority or a Government Entity by way of any activity in relation to an function entrusted to a Panchayat under article 243G of the Constitution or in relation to an function entrusted to a Municipality under article 243W of the Constitution. 7.2 Pure service is not defined in the GST Act. However, it appears from the context that services involving no supply of goods are considered as pure service. The Applicant claims that the service received from M/s. Primeone work force private limited does not involve supply of any goods while provisioning the services. Thus services are therefore, classifiable as pure service. 7.3 Also, we must look in the contention that the Applicant being recipient of service is a government ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ltd. and the applicant is covered under the definition of Government Entity. 7.7 Before deciding the applicability of Sl No. 3 of the Exemption Notification, the functions of a Panchayat or a Municipality under the Constitution needs to be discussed. Article 243G of the Constitution discusses the Powers, authority and responsibilities of Panchayats, stating that "Subject to the provisions of this Constitution the Legislature of a State may, by law, endow the Panchayats with such powers and authority and 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... ....(b) the implementation of schemes for economic development and social jus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ammes 7.8 Now it is important to discuss the nature of work entrusted to the applicant. The applicant is entrusted for distribution of electricity in the commissionaires region of Indore and Ujjain. The applicant also carried out electrification work to develop distribution network for supply of electricity in the above region. 7.9 The work entrusted to the applicant as mentioned above is covered under the article 243G of the constitution as the function entrusted to the Panchayat i.e., Rural Electrification including distribution of Electricity. However, the applicant work is not covered under Article 243W of the constitution as the function entrusted to the municipality. 7.10 In view of above, it is concluded that the services receive ..... X X X X Extracts X X X X X X X X Extracts X X X X
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