TMI Blog2020 (7) TMI 474X X X X Extracts X X X X X X X X Extracts X X X X ..... nder article 243W and to Panchayats under article 243G of the Constitution, and, therefore, it is exempt from tax being covered in Sr. No. 3 of Notification No. 12 of 2017-Central Tax (Rate), dated 28-6-2017 (as amended from time to time) issued under Central Goods and Services Tax Act, 2017 (CGST/Act), and corresponding notifications issued under Madhya Pradesh Goods and Services Tax Act, 2017. Whether Services provided by the applicant to other government department are covered under the entry no 8 of Exemption Notification No. 12/2017 Central Tax (Rate) dated 28th June 2017? - HELD THAT:- Entry No. 8 prescribe for Services provided by the Central Government, State Government, Union territory or local authority to another Central Government, State Government, Union territory or local authority - this entry grants exemption to services provided by Central Government, State Government, Union territory or local authority only. Hence to qualify for the exemption granted under Entry No 8 service provider must be government or local authority. The Word government has been defined under the GST laws and the definition government covers Central Government and State Governments only ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3.3 Atal Bihari Vajpayee Institute of Good Governance Policy Analysis is part of Department of Public Service Management Department, Government of Madhya Pradesh. 3.4 The Institute s Governing Council is the apex body and is presided over by the Chief Minister of Madhya Pradesh. The Governing Body of the Institute comprises senior cabinet ministers from different departments of Government of MP, Chief Secretary and other Principle Secretaries. The Director General is the administrative and operational head. He is appointed by the Government of MP. 3.5 The Institute is registered u/s 12AA of the Income Tax Act 1961 since 01/04/2013, that exempts the Institute from income tax levies. 3.6 The AIGGPA is to act as a knowledge resource hub for promotion of good governance with the aim to; i) facilitate a multi-disciplinary network of governance, ii) to recognize and promote research, good practices, and overall improvement in practices of governance globally, with focus on Madhya Pradesh with the help of professionals, organizations/associations in the relevant areas. 3.7 To achieve these, the AIGGPA shall have the following objectives: - (a) In the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4.2 Whether Services provided by the applicant to other government department are covered under the entry no 8 of Exemption Notification No. 12/2017 Central Tax (Rate) dated 28th June 2017? 5. CONCERNED OFFICER S VIEW POINT: The Joint Commissioner, CGST Central Excise, Bhopal vide letter No. F.No.IV(16)06/Advance Ruling/Tech/BPL/2020 dated 05.03.2020 forwarded FAQ dated 24.08.2017 issued by the CBIC, New Delhi; wherein the department clarify applicability of GST in case of one Government/Local Authority provided services to other Government/local Authority in response to views called by the Authority of advance ruling on the application submitted by the Applicant. 6. RECORD OF PERSONAL HEARING: Shri Navneet Garg, CA Shri Girish Trivedi, Chief Manager Finance appeared on behalf of the applicants for personal hearing on 05.02.2020 and they reiterated the submissions already made in the application and Annexure with the application and also submitted the written submission specifically mentioning the eligibility for exemption anted under entry No 3 of Notification no 12/2017 CT (R) dated 28 th June 2017. They also sought to submit copies of certain documents an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vernmental authority or a Government Entity. d. 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. 7.4.2 The Contracts are awarded to the applicant by various government departments, local authority or Government Entities and Governmental Agencies for impact evaluation, research works and study for various government departments on the matter of good governance and policy analysis is a Pure Service Contract . 7.4.3 Further the services provided by the applicant to other government departments, local authority or Government Entities and Governmental Agencies are not covered in exclusion clause pertaining to works contract service or composite supplies involving supply of any goods . 7.4.4 the applicant has submitted the list of total 63 projects being executed along with the name of the government department, local authority or Government Entities and Governmental Agencies for whom such project is being under taken. It is evident from the above said list that the applicant is providing services to governme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it is pertinent to go through the items covered under both the schedules. Hence the Schedule Eleven Schedule Twelve are reproduced as follows:- ELEVENTH SCHEDULE (Article 243G) 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 poultry. 5. Fisheries. 6. Social forestry and farm forestry. 7. Minor forest produce. 8. Small scale industries, including food processing industries. 9. Khadi, village and cottage industries. 10. Rural housing. 11. Drinking water. 12. Fuel and fodder. 13. Roads, culverts, bridges, ferries, waterways and other means of communication. 14. Rural electrification, including distribution of electricity. 15. Non-conventional energy sources. 16. Poverty alleviation programme. 17. Education, including primary and secondary schools. 18. Technical training and vocational education. 19. Adult and non-formal education. 20. Libraries. 21. Cultural activities. 22. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 243W and to Panchayats under article 243G of the Constitution, and, therefore, it is exempt from tax being covered in Sr. No. 3 of Notification No. 12 of 2017-Central Tax (Rate), dated 28-6-2017 (as amended from time to time) issued under Central Goods and Services Tax Act, 2017 (CGST/Act), and corresponding notifications issued under Madhya Pradesh Goods and Services Tax Act, 2017 (MPGST Act). Now let us examine the second question:- 7.5 Whether Services provided by the applicant to other government department are covered under the entry no 8 of Exemption Notification No. 12/2017 Central Tax (Rate) dated 28th June 2017? Sl. No. Chapter, Section, Heading, Group or Service Code (Tariff) Description of Services Rate (per cent.) Condition (1) (2) (3) (4) (5) 8 Chapter 99 Services provided by the Central Government, State Government, Union territory or local authority to another Central Government, State Governmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the definition of Government or Local Authority hence Services provided by the applicant to other government department are not covered under the entry no 8 of Exemption Notification No. 12/2017 Central Tax (Rate) dated 28th June 2017. 7.6 We also find it necessary to mention here that the classification decided by this Ruling shall be effective prospectively and this ruling shall not entail any right of the Applicant to claim refund of any tax which they may have paid prior to this Ruling. 8. RULING (Under section 98 of Central Goods and Services Tax Act, 2017 and the Madhya Pradesh Goods and Services Tax Act, 2017) 8.1 In respect of Question 1 and additional submission made during the hearing regarding the eligibility for exemption granted under entry No 3 of Notification no 12/2017 CT (R) dated 28th June 2017, we hold that the amount recovered by the applicant from other government departments for doing research work and study, which help them make policies or understand its impact, shall be exempt subject to satisfaction of conditions laid down under Entry No. 3 of Notification No 12/2017 CTR dated 28th June 2017. Meaning there by it has to be seen for ..... X X X X Extracts X X X X X X X X Extracts X X X X
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