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TMI Blog2020 (6) TMI 538X X X X Extracts X X X X X X X X Extracts X X X X ..... g with goods; that however in case of man power supply service, supply is only for service and there is no supply of goods along with it in execution of such man power supply service contract; that after introduction of GST, they have provided man power supply service to the following entities as detailed below: Sr.No. Name of party Amount (Rs.) Constitution of party 1. Coast Guard Region (NW) 72,00204/- Central Government 2. Collector of Ahmedabad, Bhavnagar, Godhara and Dwarka 1,03,70,590/- Gujarat State Government 3. Bhavnagar Forest Department 48,689/- Gujarat State Government 4. Jilla Panchayat, Mehsana 1,60,983/- Local Authority 5. Chief Officer of Ahmedabad and Mehsana Municipal Corporation 11,60,992/- Local Authority 6. Industrial Extension Bureau, Gujarat 3,60,248/- Governmental Authority 7. SardarSarovar Nigam limited 65,62,501/- Governmental Authority 8. Gujarat State Nagrikpurvatha limited 1,63,574/- Governmental Authority 9. Chief Engineer, PGVCL 2,64,00,693/- Limited company 2. The applicant has submitted that they are providing man power supply service to Central Government, State Government and various entit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted at the rate as specified in the corresponding entry in column (4) of the said Table, unless specified otherwise, subject to the relevant conditions as specified in the corresponding entry in column (5) of the said Table, namely:- Sl.No. Chapter Description of Service Rate Condition 3. Chapter 99 Pure services (excluding works contract service or other composite supplies involving supply of any goods) provided to the Central Government, State Government or Union territory or local authority or a Governmental authority or a Government entity 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 3. The applicant has submitted that the pre-requisite for claiming exemption under the above entry is that it is necessary to provide pure service by way of any activity in relation to any function entrusted to Panchayat under article 243G of the Constitution or in relation to any function entrusted to a Municipality under Article 243W of the Constitution; that definition of 'Pure service' has not been give ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mentally retarded. 27. Welfare of the weaker sections, and in particular, of the Scheduled Castes and the Scheduled Tribes. 28. Public distribution system. 29. Maintenance of community assets. 6. As per the applicant, 243W of the Constitution of India has entrusted the following functions to the municipalities: 1. Urban planning including town planning. 2. Regulation of land-use and construction of buildings. 3. Planning for economic and social development. 4. Roads and bridges. 5. Water supply for domestic, industrial and commercial purposes. 6. Public health, sanitation conservancy and solid waste management. 7. Fire services. 8. Urban forestry, protection of the environment and promotion of ecological aspects. 9. Safeguarding the interests of weaker sections of society, including the handicapped and mentally retarded. 10. Slum improvement and upgradation. 11. Urban poverty alleviation. 12. Provision of urban amenities and facilities such as parks, gardens, playgrounds. 13. Promotion of cultural, educational and aesthetic aspects. 14. Burials and burial grounds; cremations, cremation grounds; and electric crematoriums. 15. Cattle pounds; preve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7-Central Tax (Rate) dated 28.06.2017. 9. The applicant has submitted that they have provided man power supply service to these entities who are engaged in activities specified in Article 243W or Article 243G of the Constitution of India and has given a summary of the nature of work and activities carried out by various government entities along with relevant entry of Article 243W or 243G for which exemption is sought: Sr.No. Name of party Whether Central Government or State Government or Union territory or Local authority or Governmental authority or Government entity. 1. Coast Guard Region (NW) Central Government 2. Collector of Ahmedabad, Bhavnagar, Godhara and Dwarka Gujarat State Government 3. Bhavnagar Forest Department Gujarat State Government 4. Jilla Panchayat, Mehsana Local Authority 5. Chief Officer of Ahmedabad and Mehsana Municipal Corporation Local Authority 6. Industrial Extension Bureau, Gujarat Governmental Authority 7. Sardar Sarovar Nigam Limited Governmental Authority 8. Gujarat State Nagrik Purvatha Limited Governmental Authority 9. Chief Engineer, PGVCL Governmental Authority The applicant has also stated that in case o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9/- Gujarat State Government 4. Jilla Panchayat, Mehsana 1,60,983/- Local Authority 5. Chief Officer of Ahmedabad and Mehsana Municipal Corporation 11,60,992/- Local Authority 6. Industrial Extension Bureau, Gujarat 3,60,248/- Governmental Authority 7. Sardar Sarovar Nigam limited 65,62,501/- Governmental Authority 8. Gujarat State Nagrikpurvatha limited 1,63,574/- Governmental Authority 9. Chief Engineer, PGVCL 2,64,00,693/- Limited company 10. Mahi Milk Producer Company limited 1,25,554/- Producer Company 11. N.G.Patel Finlease private limited 1,68,710/- Private Limited Company The applicant has also stated that in case of pure services provided to private corporate and organization like M/s. Mahi Milk Producer Company ltd. and M/s. N.G. Patel Finlease Pvt. Ltd., (mentioned at Sr. Nos. 10 & 11 above) they are paying GST on services provided and have also submitted copies of work orders. So, the point to be discussed is with regard to the eligibility of the applicant to claim exemption under Sr.No.3 of Notification No.12/2017-Central Tax(Rate) dated 28.06.2017 and Notification No.12/2017-State Tax(Rate) dated 30.06.2017 and pay NIL rate of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es (excluding works contract service or other composite supplies involving supply of any goods) provided to the Central Government, State Government or Union territory or local authority or a Governmental authority or a Government entity 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 Relevant portion of Notification No.12/2017-State Tax(Rate) dated 30.06.2017 reads as under: No.(GHN-41)GSR-2017/S.11(1)(7)-TH- In exercise of the powers conferred by sub-section (1) of section 11 of the Gujarat Goods and Services Tax Act, 2017 (Guj.25 of 2017), the Government of Gujarat, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby exempts the intra-State supply of services of description as specified in column (3) of the Table below from so much of the state tax leviable thereon under sub-section (1) of section 9 of the said Act, as is in excess of the said tax calculated at the rate as specified in the corresponding entry in column (4) of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the first condition is fulfilled. 13.2 The second condition to be verified is as to whether the entities mentioned at para-11 above are Central Government or State Government or Local authority or Governmental authority or Government entity. In this regard, definitions of the same as per the CGST Act, 2017 are as under: (i) As per Section-2(53) of the CGST, Act, 2017, "Government" means the Central Government. (ii) As per Section-2(53) of the Gujarat GST, Act, 2017, "Government" means the State Government. (iii) "local authority" means-- (a) a "Panchayat" as defined in clause (d) of article 243 of the Constitution; (b) a "Municipality" as defined in clause (e) of article 243P of the Constitution; (c) a Municipal Committee, a Zilla Parishad, a District Board, and any other authority legally entitled to, or entrusted by the Central Government or any State Government with the control or management of a municipal or local fund; (d) a Cantonment Board as defined in section 3 of the Cantonments Act, 2006; (e) a Regional Council or a District Council constituted under the Sixth Schedule to the Constitution; (f) a Development Board constituted under article 371 of the C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a Gujarat State Government 3. Bhavnagar Forest Department Gujarat State Government 4. Jilla Panchayat, Mehsana Local Authority 5. Chief Officer of Ahmedabad and Mehsana Municipal Corporation Local Authority 6. Industrial Extension Bureau, Gujarat Governmental Authority 7. Sardar Sarovar Nigam Limited Governmental Authority 8. Gujarat State Nagrik Purvatha Limited Governmental Authority 9. Chief Engineer, PGVCL Governmental Authority 13.3 The third condition to be verified is whether the services provided to these entities mentioned above are services provided by way of any activity in relation to any function entrusted to a Panchayat under Article 243G of the Constitution of India or in relation to any function entrusted to a Municipality under Article 243W of the Constitution of India. The functions entrusted to the panchayats by Article 243G of the Constitution of India are listed hereunder: 1. Agriculture, including agricultural extension. 2. Land improvement, implementation of land reforms, land consolidation and soil conservation. 3. Minor irrigation, water management and watershed development. 4. Animal husbandry, dairying and pou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ischarge of various functions by various entities, different work orders are issued according to which services are provided by the applicant. Since the applicant, at various stages, enters into different agreements with various authorities for provision of services, it is not practical to examine at this stage, each contract, he has entered into with the recipients of services. Further, during the course of providing services, the applicant would also enter into further agreements with the service recipients. It is not possible to foresee the nature of all these agreements at present. Further, there could also be modifications/ amendments in the existing agreements and the nature of service could be subsequently altered. Therefore, the reply to the query raised by the applicant cannot be answered in plain 'no' or 'yes'. Therefore, we hold that the nature of these agreements and the services provided by the applicant would determine whether the third condition as discussed above has been met or otherwise. We hold that applicant shall be eligible for the exemption under the Notification No.12/2017-State Tax (Rate) dated 28.06.2017 only if the services in question are provided by way ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... menities and facilities such as parks, gardens, playgrounds) and Sr. No. 17 (Public amenities including street lighting, parking lots, bus stops and public conveniences) of Article 243W of the Constitution of India. d. Likewise, Ahmedabad Municipal Corporation vide letter dated 08.10.2016 with reference to Standing Committee Resolution no. 798 dated 29.09.2016 awarded letter of acceptance for manual and mechanised housekeeping work at Kankaria Lake Front and Kids City. We find that the said service is provided by the applicant in relation of discharge of functions covered under Sr. No. 12 (Provision of urban amenities and facilities such as parks, gardens, playgrounds) of Article 243W of the Constitution of India. e. The letter of acceptance no. NPCDn.4/5/AB/TC/Security & Operation of Gate2014/JBC/Distr/1670 dated 29.10.2014 has been awarded to the applicant by Sardar Sarovar Narmada Nigam Limited for providing service for security and operation of gates of on regulating structures of Branch Canal and distributory. We find that the said service is provided by the applicant in relation of discharge of functions covered under Article 243G [Minor irrigation, water management and w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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