TMI Blog2021 (6) TMI 385X X X X Extracts X X X X X X X X Extracts X X X X ..... ed that it was established by the Government - the applicant cannot be covered under the definition of Government Entity and hence the entry no. 9C of Notification No. 12/2017- Central Tax (Rate) dated 28.06.2017 as amended by Notification No.32/2017 - Central Tax (Rate) dated 13.10.2017 is not applicable to the applicant. The supply of service by a Government controlled Association to State Government, Local Authority or any person specified by State Government, Local Authority against consideration received from State Government, Local Authority, in the form of grants is not liable to GST only if the Government controlled Association is covered under the definition of Government Entity and if not, then the same is liable to tax. - KAR ADRG 28/2021 - - - Dated:- 7-6-2021 - DR. RAVI PRASAD M.P. AND SRI. MASHHOOD UR REHMAN FAROOQUI, MEMBER Represented by : Sri Lokesh Babu, Chartered Accountant and Duly Authorised Representative ORDER UNDER SECTION 98(4) OF THE CGST ACT, 2017 UNDER SECTION 98(4) OF THE KGST ACT, 2017 1. M/s Bellary Nirmithi Kendra, Door No. 1, RYMEC Campus, Hospet Road, Ballari,-583 101, (called as the applicant hereinafter), having GSTIN ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... endra are as under,- a. To strive for the advancement in scientific technology in the areas of low cost housing / dwelling and human settlement by legitimate and lawful means by establishing centre at district level and to serve all the taluks of the district. b. Kendra will take the responsibilities of co-ordination and supervising of various works accepted by sub-kendras and act as a technical guidance bureau. c. Nirmiti Kendra acts as a facilitator to bring low cost technology from various sources and transfers to the stakeholders in the society. d. To initiate Research and Development and cost-effective technologies and propagate through District and Taluk level Nirmana Kendras. e. To organise training programmes on subjects, viz. (1) Low cost housing technologies (2) housing (3) management of housing projects to general public and people in private sector working for society to spread the message of low cost technologies. f. To act as a habitat centre to conduct training on capacity building of low cost technologies. g. To promote IEC activities across the district. h. To collect and disseminate knowledge and other information necessary f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Materials and Technologies developed by various R D Institutions across the country. 5.2 The Government of Karnataka took a leading initiative in order to promote, monitor, oversee and guide the Nirmiti Kendra activities in the State and established an apex centre called Karnataka Rajya Nirmana Kendra (KARNIK) . It was registered on 11.06.1991 under Societies Act, KSR Act of 1960. In this regard, G.O. has been issued vide No. HUD 63 KHB 1991 Bangalore dated 1st January, 1993. 5.3 The objectives of the Karnataka Rajya Nirmana Kendra (KARNIK) are as under:- (a) To monitor, oversee, supervise, and guide the Building Centres (Nirmiti Kendras) (b) To promote cost-effective, environment friendly, alternate building materials and technologies through the network of Nirmiti Kendras in the field of training. (c) Co-ordination, monitor and regulating the activities of the Nirmiti Kendras set up in the districts and associated / affiliated agencies. (d) Providing guidance to Government on emerging housing concepts and policy options from time to time. (e) Developing replicable housing infrastructure models. (f) Enabling community to have access to cost-eff ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Panchayat, with patronage shown by various departments and agencies of State Government. Bellary Nirmiti Kendra is registered under the Karnataka Societies Registration Act, 1960 (Karnataka Act, 17 of 1860). 5.8 As per the Memorandum of Association of Bellary Nirmiti Kendra, para 9 states that the Deputy Commissioner of Bellary will be the Chairman of the Nirmiti Kendra to exercise the Rights and Powers as provided by the Rules and Regulation of the Society. The Bellary Nirmiti Kendra is controlled by the Chairman and Executive Chairman, being the Deputy Commissioner of Bellary and Chief Executive Officer, Zilla Panchayat respectively. The projects executed by the Bellary Nirmiti Kendra is monitored by the Chairman and Executive Chairman. Further, the payments for the supplies made to the Bellary Nirmiti Kendra by the vendors / suppliers is/ are controlled by both Deputy Commissioner of Bellary and Chief Executive Officer, Zilla Panchayat respectively. Hence, the applicant states that Bellary Nirmiti Kendra is controlled by the Government of Karnataka. 5.9. The applicant states that Bellary Nirmiti Kendra receives grants from various public service departments of Government o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rated the facts narrated in their application. 8. DISCUSSION AND FINDINGS 8.1 We have considered the submissions made by the Applicant in their application for advance ruling as well as the submissions made by Sri. Lokesh Babu, Chartered Accountant and duly authorised representative of the applicant during the personal hearing. We have also considered the issues involved, on which advance ruling is sought by the applicant, and relevant facts. 8.2 At the outset, we would like to state that the provisions of both the CGST Act and the KGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the KGST Act. 8.3 The applicant sought advance ruling in respect of the following question with regard to the classification of their service.- Whether supply of service by a Government controlled Association to State Government, Local Authority or any person specified by State Government, Local Authority against consideration received from State Government, Local Authority, in the form of grants is liable to GST? 9. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o carry out a function entrusted by the Central Government, State Government, Union territory or a local authority. 11.2 The above definition clearly states that the following conditions needs to be satisfied by the applicant to be covered under the definition of government entity :- (a) It must be a body set up by an Act of Parliament or State Legislature or it must be established by any Government. (b) The body should have been set up or established, as the case may be, to carry out a function entrusted by the Government or local authority (c) The body should have more than 90% participation of the Government or local authority by way of equity or control. 11.3 It is clear from the submissions made that the applicant is a society registered under the Societies Registration Act, 1860 and hence is a society. 11.4 The applicant has not established whether the applicant society has been set up by an Act of State Legislature or established by the Government. He has only stated that the Nirmiti Kendra is promoted, monitored, overseen and guided by Karnataka Rajya Nirmana Kendra (KARNIK) which itself was registered on 11.06.1991 under the Societies Act and the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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