TMI Blog2021 (6) TMI 520X X X X Extracts X X X X X X X X Extracts X X X X ..... doned as a technical lapse and regularized? - Scope of Advance Ruling application - HELD THAT:- Section 97 (2) of the CGST Act / Tamil Nadu GST Act (TNGST) gives the scope of Advance Ruling Authority, i.e., the question on which the Advance Ruling can be sought - The Act limits the Advance Ruling Authority to decide the issues earmarked for it under Section 97(2) and no other issue can be decided by the Advance Ruling Authority. The question at SI.No.4 seeks regularization of the payment made by them considering the same as a technical lapse, which is not in the purview of this authority as per Section 97 (2) - this question is outside the scope of Advance Ruling application. The applicant being a Municipality as defined in clause (e) of article 243 P of the Constitution, is a Local Authority under the GST Act. Therefore, if the services listed here are found to be that in relation to the entries of Eleventh [Twelfth Schedule of the Constitution, and the said activities are undertaken by the applicant, a Local authority, when engaged as a Public Authority , then the said activities are to be treated neither as supply of goods nor supply of services effective from 26.07.2018. A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... applicant, as per Notification No. 14/2017 C.T.(Rate) dated 28.06.2017, is neither a supply of goods nor supply of service and not taxable to GST. Fees for bays in bus-stand - HELD THAT:- It is stated that the applicant collects the fees from the bus owners/ Govt. transport department for allowing parking of bus on per day basis and they claim the same is in relation to the public amenity listed at (q) of Twelfth Schedule of the Constitution. Entry (q) states Public amenities including street lighting, parking lots, bus stops and public conveniences - applicant undertakes the activity as a public authority and therefore, the said activity when provided by the applicant, is neither a supply of goods nor supply of service as per Notification No. 14/2017-C.T.(Rate) dated 28.06.2017 as amended effective from 26.07.2018. Bus-stand, others - HELD THAT:- This aspect is not required to be considered. Locker rent - HELD THAT:- It is stated that the lockers are extended for rent for the public. The consideration is collected per bag/ suitcase/ bundle with material. The applicant has claimed that the activity is in relation to the function stated at (l) of the Twelfth Schedule ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pulated in the entry (q), as it is not in the genre of the inclusive-activities specified in the said entry. Therefore, providing rooms for temporary stay in the Bus-stand is not an activity in relation to the function at (q) of the Twelfth Schedule and hence, Notification No. 14/2017-C.T.(Rate) dated 28.06.2017 as amended is not applicable to this activity - In the case at hand the service is extended by the applicant and the consideration is mentioned as ₹ 40/- per day per single bed and ₹ 60/- per double bed/per day, which is well within the value of supply mentioned to be exempted under this entry. Accordingly, the services of renting room for temporary Stay are exempted under SI.No. 14 of the Notification No. 12/2017-C.T. (Rate) dated 28.06.2017 as amended. Fees on Pay use Toilets - HELD THAT:- The applicant undertakes the above activity as a public authority and therefore, the said activity when provided by the applicant, is neither a supply of goods nor supply of service as per Notification No. 14/2017-C.T.(Rate) dated 28.06.2017 as amended effective from 26.07.2018. For entry of vehicle in the market - HELD THAT:- Providing for Markets includes provi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or not as per entry SI no 8 of the table to Notfn. No 12/2017 dated28-06-2017. Renting of immovable property service rendered by local authority to Nationalised Banks - HELD THAT:- Nationalised Banks are exempted or not as per St no 8 of the table to Notfn. No 12/2017 dated 28-06-2017. - TN/14/ARA/2021 - - - Dated:- 28-4-2021 - SHRI B. SENTHILVELAVAN, I.R.S., AND SHRI KURINJI SELVAAN V.S., M.SC., (AGRI.), M.B.A., MEMBER Note: Any appeal against the Advance Ruling order shall be filed before the Tamil Nadu State Appellate Authority for Advance Ruling, Chennai under Sub-section (1) of Section 100 of CGST ACT/TNGST Act 2017 within 30 days from the date on which the ruling sought to be appealed against is communicated. At the outset, we would like to make it clear that the provisions of both the Central Goods and Service Tax Act and the Tamil Nadu Goods and Service Tax Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Service Tax Act would also mean a reference to the same provisions under the Tamil Nadu Goods and Service Tax Act. ----------------- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (others) A) charges for of TV advt. in bus-stand (B) locker rent provided in bus- stand (C) flower shop in bus stand in open space D) cycle stand, scooter, auto, four wheeler stand in bus stand and other places (E) collection of room rent for temporary stay Some times in some Three years lease A. Exempted vide SI No 7 of Notfn. No 12/2017 (or) payment of tax under reverse charge under sl no 5 of Notfn. No 13/ 2017-Central Tax (Rate) dated the 28th June, 2017 B. Notfn No 14/2017 dt 28-06-2017 or no 4 of 12/2017 dt 28-06-2017. C. Notfn/-14/2017 dt 28-06-2017(or) sl no 4 of 12/2017 dt 28-06-2017(or) Sl no 24 of the table to Notification No. 11/2017-C.T. (Rate), dated 28-6-2017 D. Notfn 14/2017 dt 28-06-2017(or) sl no 4 of 12/2017 dt 28-06-2017 E. Notfn 14/2017 dt 28-06-2017(or) sl.no. 04 of 12/2017 dt 28-06-2017 or Sl no 14 of 12/2017 dated 28-06-2017 6. Slaughter house fees Some times in some months Three years lease Notfn No 14/2017 dt 28-06-2017 or sl no 56 of Notfn. N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 15 Renting of immovable property Direct by the municipality on lease contract Nonpayment of tax under reverse charge under SI No 5A of Notfn No 13/2017 dated 28-06-2017 but paid under direct charge and whether it can be condoned and regularised for the period from 25-01-2018 in case of services to GSTN holders 16 Renting of immovable property Direct by the municipality on lease contract to another Central / State Government. Sl no 8 of the table to Notfn, No. 12/2017 dated 28-06-2017 The Questions for which the ruling is sought are: Q.1. Advance ruling is required in respect of SI No 1 to 6, 8, 9 13 whether the services rendered by them directly are covered under Twelfth Schedule to Article 243W of the Constitution and / or exempted under the Notfn. No mentioned against each SI No. Q.2. In respect of services rendered by them from SI No 1 to 13 through tender contractors, whether they are covered under Twelfth Schedule to Article 243W of the Constitution and/or exempted vide the Notfn. no. mentione ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ughter house fees, Bunk stalls, Rent - traveler s bungalows rest house (municipal lodge), Fees on pay use toilets, Avenue receipts, Right to fishing in Pond, Running a fish market, fee for entry vehicle in the market, annual track rent -Cable operator laying fee(optical fiber laying fee). 2.2 They have stated that, they undertake a. Direct collection till it is entrusted to the lease contractor in respect of Fees from Park; Bus-stand -others- Cycle stand, scooter, auto and four-wheeler stand in bus stand Bus-stand -others -collection of room rent for temporary stay Slaughter house fees Rent -traveler s bungalows rest house -municipal lodge and in such cases: service provider is the applicant. Service is o allowing public, who are service recipients entry to Park; use the vehicle stand in Bus Stand; temporary stay in the rooms in Bus Stand o allowing use of the slaughter house facility by the Public, who are service recipients o allowing public who are service recipients to use single [double bed room on daily basis in Municipal lodge. consideration is the fee charged by the applicant for entry/ use of the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and; temporary stay in the room in the bus stand; Travelers bungalow rest house right to the space for selling of flowers in the bus stand/bunk stall for the purpose of shop right to enjoyments of fruits of the trees in high ways of particular area as per the prescribed conditions of tender right to take fish in a particular pond as per the prescribed conditions of tender right to sell fish in a particular shop in a specified area as per the prescribed conditions of tender Consideration is the amount determined and confirmed in the tender process (One of the main conditions is the amount realized from the public should be as per the amount prescribed by the Municipal Corporation) 2.4 They have stated to collect Charges towards (1) cutting, repairing rectification of roads and (2) payment of annual rent for the optical cable laid alongside roads based on Contract in which the applicant is the service provider, the operator of phone/ mobile services is the service recipient. The claim is as to whether the whole service can be treated as renting of immovable property service as composite supply and reverse charge be applied since the service reci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that: As per Notification No. 14/2017-CentraI Tax (Rate) New Delhi, the 28th June, 2017 Services by way of any activity in relation to a function entrusted to a Panchayat under article 243G of the Constitution or to a Municipality under article 243W of the Constitution is not a service. Hence it is not chargeable to tax. Even if an argument is placed that it is a service, it is exempted as per Sl No 4 of Notfn No 12/2017 dated 29-06-2017 as amended which states that Services by governmental authority by way of any activity in relation to any function entrusted to a municipality under article 243 W of the Constitution is NIL. The applicant has stated the relevant head under which the activities are covered as per the entries in the Twelfth Schedule to Article 243 W of the Constitution along with activity specific exemptions, as under: Fees from Parks- - Maintenance of park is covered under (l) of Twelfth Schedule to Article 243W of the Constitution which reads as follows : (l) Provision of urban amenities and facilities such as parks, gardens, playgrounds. Market fee-daily Market fee-weekly - Market fee is covered under (c), (i) an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icle 243 W of the Constitution which reads as follows: (I) Provision of urban amenities and facilities such as parks, gardens, playgrounds. (q) Public amenities including street lighting, parking lots, bus stops and public conveniences It is also exempted as per entry SI No 14 of the Notfn No. 12/2017 also since the amount collected by the municipality is less than ₹ 1,000/-and hence exempted. Fees on Pay use toilets - is covered under (q) of Twelfth Schedule to Article 243 W of the Constitution which reads as follows: q) Public amenities including street lighting, parking lots, bus stops and public conveniences For entry of vehicle in the market is covered under (q) of Twelfth Schedule to Article 243W of the Constitution which reads as follows: q) Public amenities including street lighting, parking lots, bus stops and public conveniences 3.4 On the activities when tendered to successful bidder and undertaken by the successful bidder, the applicant has stated that Even if an argument placed that service has been rendered by the municipal corporation to contractors, it is submitted that it is not a taxable service due ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7-C.T.(Rate) dated 28.06.2017; As per Sl.No. 24 of Notfn. No.11/2017-C.T.(Rate) dated 28.06.2017, it is a support service and hence fully exempted. Bunk Stall - It could not be termed as immovable property. As per entry Sl.No. 7 of Notfn. No. 12/2017-C.T. (Rate) dated 28.06.2017, the services provided by the applicant to the business entity whose aggregate turnover is less than exemption limits in the preceeding financial year the GST chargeable is NIL subject to the conditions specified therein. Avenue Receipts: enjoyments of fruits of the trees in highways of particular area-As per Sl.No. 54 of Notification No. 12/2017-C.T.(Rate) and as per the clarification -CBIC Press Release No. 162/2018 dated 28.05.2018, renting or leasing of land by farmers for agriculture, forestry, fishing or animal husbandry on batai or otherwise is exempt from GST; As per SI.No. 24 of Notification No. 11/2017-C.T.(Rate), it is a support service and hence it is fully exempted. Right to fishing in Pond- As per the functions entrusted to a Panchayat under the Eleventh Schedule to Article 243 G of the Constitution, Entry (v) states Fisheries . As per SI.No. 5 to Notification No. 12/2017-C.T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... society and transport corporation TNSTC are covered under the definition Of Government Entity only and they are not pure State Govt . Nationalised Banks are not pure central Govt. and so the services rendered to them are not exempted but chargeable to tax. 4.1 Due to prevailing pandemic, the applicant was addressed through their email seeking their willingness to participate in the hearing in the digital mode. The applicant consented and the authorized representatives appeared for virtual Hearing on 20.08.2020. They furnished a written submission which was taken on record. The authorized representative reiterated the submissions made along with the application and that mailed on 20.08.2020. It was intimated that of the question 1 to 5 on which the ruling is sought, Q. No. 4 is not admissible as the same is not in the purview of this authority. The applicant acceded to this. For a Query as to the practice followed in the erstwhile Ser-vice Tax Regime, the representative said that there were proceedings which have been since settled under SVLDRS. The applicant was asked to furnish a Write-up on issue of taxability on the activities under Service Tax Regime and also was asked to f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oilets (q) of 243 W 10 Avenue receipts (i) of 243G 11 Right to fishing in bond (v) of 243 G 12 Running a fish market (v) of 243 G (xxii) of 243 G 13 For entry vehicle in the market (l) of 943 W and (xxii) of 243 G 14 annual track rent -Cable operator laying fee (optical fibre laying fee) NA 15 Renting of immovable property NA 16 Renting of immovable property NA The applicant has stated that they are a local authority in which they are engaged as public authority and rendered the above services as listed in the above table Sl.No. 1 to 13 except 5A, by way of any activity in relation to a function entrusted to a Panchayat under Article 243 G of the Constitution or to a Municipality under Article 243 W of the Constitution and hence exempted as per Notification No. 14/2017-C.T.( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the contractor in the name of Municipality for parking in cycle, two-wheeler in bus-stand Sample token issued by the contractor in the name of Municipality for Pay use toilet in the bus-stand Copy of contract for cable operator laying fee Rental receipts issued to General Manager, PNB Integrated Child Welfare Dev. Office Senior Post Master, Erode Divisional Manager, State Express Transport Corp, Erode Spl. Officer, TNSTC, TNSTC staff co-op Society Ltd, Erode Erode District Consumer Co-op, Erode Special Officer, Chindhamani Super market, Erode 4.4 On perusal of the details furnished, it was seen that the following were not furnished and the applicant were asked to furnish the same vide e-mail dated 04.12.2020: sample contracts in respect of activity under SI.No.3,6,7,8,10,11,12 13 where ruling is sought in Q.No.2 Rent agreements in respect of Q.No. 5 In respect of Q.No.3, the details of Account head under which the income for the activity raised in the said question is accounted along with trail of accounts maintained The applicant was also asked whether they wished to be hea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te) is applicable to the same Bus stand others- a.TV Advt., (c) Flower Shop, (e) Collection of room rent for temporary stay are commercial in nature. Hence, tax has to be paid on these items; (b) Regarding Locker Rent it is not covered under the functions entrusted to a Municipality under the Twelfth Schedule to Article 243 W of the Constitution, the same is Taxable; (d) cycle stand, scooter, auto, four wheeler stand are provided under Section 270 B of TNDMA Slaughter house fees -exempted Bunk Stalls -These are given on lease/contract. Commercial in nature and hence taxable Rent - Traveller s bungalows Rest House -The above activities are not covered under the functions entrusted to a Municipality under the Twelfth Schedule to Article 243 W of the Constitution, the same is taxable. Not covered under the said Notification and hence taxable Fees on pay Use Toilets - exempted under Sl.No. 76 of Notfn. No. 12/2017 dated 28.06.2017. These are provided under Section 145 of TNDMA 1920 Avenue Receipts - Commercial in nature, hence taxable. They are not support services relating to agriculture for qualification under SI.No. 24 of Notfn. No. 11/2017 -C.T.(R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8.06.2017 as amended apart from their eligibility to exemption vide various entries of the exemption Notification. They have sought ruling on the following questions: Q.1. Advance ruling is required in respect of SI No 1 to 6, 8,9 13 whether the services rendered by them directly are covered under Twelfth Schedule to Article 243W of the Constitution and / or exempted under the Notfn. No mentioned against each SI No. Q.2. In respect of services rendered by them from Sl No 1 to 13 through tender contractors whether they are covered under Twelfth Schedule to Article 243W of the Constitution and/or exempted vide the Notfn. no. mentioned against each Sl No. Q.3. In respect of Sl.No. 14 they are collecting charges for laying of cables alongside roads and collecting road cutting charges as well as annual rent. They require advance ruling whether composite supply can be applied for classifying the said service as renting of immovable property service and reverse charge can be applied for collecting GST as per entry SI No 5A of the table to Notfn No 13/2017 (CE rate) dated 29-06-2017 as amended from the telephone operators who are GSTIN holders Q.4. In respect of Sl No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vance Ruling Authority. The question at SI.No.4 seeks regularization of the payment made by them considering the same as a technical lapse, which is not in the purview of this authority as per Section 97 (2) above. This position was explained during the personal hearing and was stated that this question NO. 4 is not admissible for consideration. The other questions being admissible, are taken up for consideration. 7.1 The applicant in Q.No. 1, has sought ruling as to whether in respect of activities at Sl.No. 1 to 6, 8,9 13, the services rendered by them directly are covered under Twelfth schedule of Article 243 W of the Constitution and/or exempted under the Notfn. No. mentioned therein as under: Sl.No. Description of the service Entry of Twelfth Schedule under which the service is covered whether the services mentioned in Column B are exempted vide Notfn No or Sl No entry of the table to Notfn as noted against each Sl No in Column E. 1 Fee from parks (1) of 243W Notfn. No. 14/2017 dt 28-06-2017 (or) sl no 4 of 12/2017 d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Fees on pay use toilets (q) of 243 W Notfn No 14/2017 dt 28-06-2017 (or) sl no 76 of Notfn. No 12/2017 dt 28-06-2017. 13 For entry vehicle in the market (l) of 943 W and (xxii) of 243 G Notfn No 14/2017 dt 28-06-2017 (or) sl no 4 of Notfn. No 12/2017 dt 28-06-2017. 7.2 From the table above, it is seen that the applicant claims that the activities are those in relation to that listed at (i), (l), (q), (r) of the Twelfth Schedule of the Constitution under Article 243 W/(i) and (xxii) of the Eleventh Schedule of the Constitution under Article 243 G. The said entries of the Eleventh and the Twelfth Schedule of the Constitution are as under: Twelfth Schedule: (i) Safeguarding the interests of weaker sections of society, including the handicapped and mentally retarded. - (I) Provision of urban amenities and facilities such as parks, gardens, playgrounds. (q) Public amenities including street lighting, parking lots, bus stops and public conveniences. (r) Regulation of slaughter houses and tanneries Eleventh Schedule: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d at Sl. No. 1 to 6, 8, 9 13 are found to be that in relation to the entries of Eleventh [Twelfth Schedule of the Constitution, and the said activities are undertaken by the applicant, a Local authority, when engaged as a Public Authority , then the said activities are to be treated neither as supply of goods nor supply of services effective from 26.07.2018. 7.4 Alternatively, the applicant has claimed that the services are covered under the exemption at Sl.No. 4 of Notification No. 12/2017-C.T.(Rate) dated 28.06.2017 as amended. The entry Sl.No. 4 is as below: 4 99 Services by local authority or governmental authority by way of any activity in relation to any function entrusted to a municipality under article 243 W of the Constitution Nil NII As can be seen, the entry is not applicable in respect of Local Authority effective from 26.07.2018 and stands covered under Notification No. 14/2017-C.T.(Rate) dated 28.06.2017. Further, Governmental Authority as defined under 2(z0 of the Notification No. 12/2017-C.T.(Rate) dated 28.06.2017 effective from 13.10.2017 is as fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed that the applicant collects entrance fee from the farmers/ Merchants on daily basis for allowing them entry into the market. From the submissions, it is seen that the considerations are for the infrastructure of the shop (thatched shop/ thatched shed/ RC shop/ AC Sheet shed) in the market, open space allotted and the entities (vegetable bundle/ fish basket/ hen/ handcart/ coconut/ leaves bundle/ tomato basket) brought to the market. Providing Markets Fairs is a function listed at (xxii) of Eleventh Schedule under Article 243 G and the applicant being a local authority is to provide such Markets for the convenience of the Public. The considerations collected based on the infrastructure extended to the farmers/ merchants and the entities brought for sale are to convenient the public, wherein the applicant acts as a Public authority , in relation to the function Markets Fairs listed in the Eleventh Schedule. The said activity when provided by the applicant, as per Notification No. 14/2017 C.T.(Rate) dated 28.06.2017, is neither a supply of goods nor supply of service and not taxable to GST. 4. Fees for bays in bus-stand: It is stated that the applicant collects the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g lots which is an activity specified in the said entry. The applicant undertakes the above activity as a public authority and therefore, the said activity when provided by the applicant, is neither a supply of goods nor supply of service as per Notification No. 14/2017C.T.(Rate) dated 28.06.2017 as amended effective from 26.07.2018. E. Collection of Room Rent for temporary stay: The applicant has stated that the activity is allowing public to use single bed room / double bed room on daily basis in the bus-stand. They have claimed that the activity is a function listed at (q) of the Twelfth Schedule of the constitution. As, it can be seen, the said entry provides Public amenities including street lighting, parking lots, bus stops and public conveniences. Renting room for temporary stay on daily rent basis is not an activity in relation to the activities stipulated at entry(q), as it is not in the genre of the inclusive-activities specified in the said entry. But is an activity of commercial Nature. Therefore, providing rooms for temporary stay in the Bus-stand is not an activity in relation to the function at (q) of the Twelfth Schedule and hence, Notification No. 14/201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... relation to the activities stipulated in the entry (q), as it is not in the genre of the inclusive-activities specified in the said entry. Therefore, providing rooms for temporary stay in the Bus-stand is not an activity in relation to the function at (q) of the Twelfth Schedule and hence, Notification No. 14/2017-C.T.(Rate) dated 28.06.2017 as amended is not applicable to this activity. Alternatively, the applicant has claimed the eligibility to exemption as stipulated under Sl.No. 14 of the Notification No. 12/2017-C.T.(Rate) dated 28.06.2017, which is examined as under. For ease of reference, the said entry is reproduced below: 14 Heading 9963 Services by a hotel, inn, guest house, club or campsite, by whatever name called, for residential or lodging purposes, having value of supply of a unit of accommodation below or equal to one thousand rupees per day or equivalent. Nil Nil The above entry exempts Services of accommodation for residential or lodging purposes, having value of supply of a unit of accommodation below or equal to one thousand rupees per day or equivale ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ded by the applicant, is neither a supply of goods nor supply of service as per Notification No. 14/2017-C.T.(Rate) dated 28.06.2017. 7.6 In view of the above, we hold that the activity (1) Fee from Parks; (2) Market fee-daily; (3) Market fee-weekly; (4) Fees for bays in bus-stand; 5(D)- Cycle stand, Scooter, auto, four wheeler stand in the bus-stand and other places; (6) Slaughter house fees; (9) Fees on pay use toilets; (13) Fees for entry of vehicle in the Markets are activities in relation to functions entrusted under Article 243 G and Article 243 W Of the Constitution and are treated as neither supply of goods nor services when provided by the applicant as Public authority as per Notification No. 14/2017-C.T.(Rate) dated 28.06.2017 as amended vide Notification No. 16/2018 dated 26.07.2018. In respect of activity 5(B) Locker Rent, 5(E) Renting room for temporary Stay in the bus-stand and (8) Renting Room in the Municipal Lodge, these activities are not in relation to the functions entrusted under Article 243 G and 243 W of the Constitution and therefore are treated as Services and Renting of room for temporary stay (5E) (8), is exempted vide entry SI.No. 14 of Notif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unicipal officer or servant, every contractor or agent for the collection of any municipal tax, fee or other sum due to the Municipal Council and every person employed by any such contractor or agent for the collection of such tax, fee or sum shall be deemed to be a public servant within the meaning of Section 21 of the Indian Penal Code (Central Act XLV of 1860). Section 21 of the Indian Penal Code is as below: 21. Public Servent . The words public servant denote a person falling under any of the descriptions hereinafter following; namely:- [(Twelfth) -Every person- (a) in the service .. Government; (b) in the service or pay of a local authority, a corporation established by or under a Central, Provincial or State Act or a Government company as defined in section 617 of the Companies Act, 1956 (1 of 1956). Explanation 1.-Persons falling under any of the above descriptions are public servants, whether appointed by the Government or not. Explanation 2.-Wherever the words public servant occur, they shall be understood of every person who is in actual possession of the situation of a public servant, whatever legal defe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r is defined as agent . Section 2 (105) Of the GST Act, defines supplier as: (105) supplier in relation to any goods or services or both, shall mean the person supplying the said goods or services or both and shall include an agent acting as such on behalf of such supplier in relation to the goods or services or both supplied; In the case at hand, the criteria for the contractors to be termed as agent of the applicant is when the contractors act on behalf of the applicant, i.e., when such contractors are assigned only the collection of the fees fixed by them and remittance of the same to the applicant. On perusal of the various conditions of the tender Documents and the contracts, it is seen that the contract is awarded to the successful bidder for a period of three years. The rates at which various fees are to be collected item-wise are fixed by the applicant. The successful bidder, irrespective of the fees/ charges collected by him is to pay the applicant, a fixed sum based on which the contractor was declared successful in the bid. Also, there are conditions in the tender document that the amount declared by the successful contractor is to be paid by him to the appl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... No is taken up for consideration. As brought out in para 8.4 above, the applicant supplies the Right to collect the fees/ Right to enjoy the fruits of leased avenue trees/ right to fish in the pond/ right to sell in the fishing market in respect of the various activities form Sl.No. 1 to 13 in the table mentioned at Para 1 above. Supply of Rights held by the applicant to the contractors through the tenser process is a supply made by the applicant to the contractors, who are business entities for furtherance of their business and is not an activity in relation to the functions entrusted under Article 243 G/243W and therefore the considerations received from the successful contractors are liable to 8.6 On the question whether in respect of the services rendered by them from SI.No. 1 to 13 through tender contractors are covered under Twelfth schedule to Article 243 W of the Constitution and / or exempted, it has been brought out clearly that the contractors are not agents. The service provided by the applicant to the contractors are Supply of rights as discussed in para above. The activity entrusted through the contracts by the applicant are undertaken by the contractors and in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... operty. 9.3 On perusal of the document C2/6950/2020 dated 5.3.2020 issued to M/s. JIO digital, it is seen that permission is granted to erect pillars and Optical fiber cable in the Sky space along the road for the required length of the road. The same is permitted on payment of Track rent. On perusal of the document C2/7527/2015 dated 27.04.2017 issued to M/s. Idea Cellular Limited, it is seen that permission is granted to lay OFC cable alongside the walls of the storm water drain for a fixed length of road, on payment of Road Cutting Charges and annual track rent charges. It is further seen that the Track rent is accounted under Accounting head 1308007 and the Road cutting charges (Road restoration) is accounted under Accounting head 1407001. From the above, it is evident that while Annual Track rent is a recurring charge to be paid by the service recipient, the Road cutting charges (Road restoration) is a onetime charge collected while laying the OFC initially. 9.4 Section 2(30) of the GST Act 2017 states that composite supply means a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both or any combinati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y and they are not State Govt. Nationalised Banks are not central Govt. and so the services rendered to them are not exempted but chargeable to tax. 10.3 From the Lease Agreement executed on the 10th day of June 2020, it is seen that the applicant has leased a part of the premises owned by them to the Punjab National Bank for a monthly rent. Also, from the rental receipt copies furnished by the applicant in respect of Senior Post Master dated 03/sep/ 2020, it is seen that the premises is leased on monthly rental basis. The nature of supply is Renting of immovable property as claimed by the applicant. The issue to be decided is whether the exemption under SI.No. 8 of the Notification NO. 12/2017C.T.(Rate) dated 28.06.2017 is applicable to such supplies. 10.4 The entry at Sl.No.8 of the Notification No. 12/2017-C.T.(Rate) is as follows: 8 Chapter 99 Services provided by the Central Government, State Government, Union territory or local authority to another Central Government. State Government. Union territory or local authority: Provided that nothing contained in this entry shall apply to services- (i) by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2017 - CT(R) dt 28-06-2017 as amended vide Notfn. No. 16/2018 dated 26.07.2018 5 (B) Locker rent facilities (D) Providing stand for cycle, scooter, auto, four wheeler stand in bus stand and other places (E) Providing room for rent for temporary stay (B) Facility of providing locker for rent directly by the applicant is taxable for the reason that this does not fall under Notification No 14/2017 dt 28-06-2017 and is taxable (D) Not a Supply of Service as per Notification. No. 14/2017-CT(R) dt 28-06-2017 as amended vide Notfn. No. 16/2018 dated 26.07.2018 (E) This is exempted from tax as per SI. No. 14 of Notification 12/2017-CT(R) dated 28.06.2017 for the reason that their room rent/day/person is not exceeding rupees 1000/-. 6 Providing Slaughter house facilities Not a Supply of Service as per Notification. No. 14/2017-CT(R) dt 28-06-2017 as amended vide Notfn. No. 16/2018 dated 26.07.2018 8 Providing travellers bungalows rest house This is exempted from tax as pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The question seeks regularization of the payment made by them considering the same as a technical lapse, which is not in the purview of this authority as per Section 97 (2) and therefore, the question is not admitted under Section 98(2) of the Act Q.5. In respect of SI No 16 the renting of immovable property service rendered by us as a local authority to (i) Pure state Govt. offices (viz) Asst. Director of L F Accounts, Project Officer, ICDS, ICDS Centre: Deputy Supt. Of Police and pure Central Govt offices (viz) post offices are fully exempted or not as per entry SI no 8 of the table to Notfn. No 12/2017 dated 28-06-2017. (ii) Co-operative society(viz) Chindhamani Super Market, Jeeva Co-Op Society TNSTC Staff Society, Jeeva Co-Op Society and transport corporation TNSTC are exempted or not as per entry SI no 8 of the table to Notfn. No 12/2017 dated28-06-2017 (iii) Nationalised Banks are exempted or not as per St no 8 of the table to Notfn. No 12/2017 dated 28-06-2017. Service of renting of immovable property by the applicant to another Central/ State government/Union territory or Local authority alone is exempted from tax as per SI. No. 8 of Notificati ..... X X X X Extracts X X X X X X X X Extracts X X X X
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