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TMI Blog2021 (8) TMI 187X X X X Extracts X X X X X X X X Extracts X X X X ..... pplicant/ NITT) are registered under GST with GSTIN.33AAACZ8255D1ZD. The applicant has sought Advance Ruling on the following questions: 1. Whether National Institute of Technology, Tiruchirappalli (NITT) is a Government Entity under GST Law. 2. If the answer to question is in the affirmative, whether a. The applicant is liable to deduct tax at source (TDS) under Section 51 of the CGST Act, 2017. b. Whether the applicant is required to discharge Liability on reverse charge basis on supply of services as per Section 9 (3) and 9 (4) of the CGST Act, 2017. 3. Whether the entry provided under A. Sl.No. 3, 3A of Notification 12/2017 is applicable to them. B. Composite supply of works contract provided to the applicant is covered by Sl.No.3 (vi) of Notification 11/2017 dated 28.06.2017. The Applicant has submitted the copy of application in Form GST ARA - 01 and also submitted a copy of Challan evidencing payment of application fees of Rs. 5,000/- each under sub-rule (1) of Rule 104 of CGST rules 2017 and SGST Rules 2017. 2.1 The applicant has stated that their institute NITT was started as a joint and co-operative venture of the Government of India and the Government of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mandates that the chairperson of the Board of Governors is to be nominated by the Visitor. 20. For the purpose of enabling the Institutes to discharge their functions efficiently under this Act, the Central Government may, after due appropriation made by Parliament by law in this behalf, pay to every Institute such sums of money in such manner as it may think fit. 21 (1). Every Institute shall maintain a Fund to which shall be credited- (a) all moneys provided by the Central Government; (b) all fees and other charges received by the Institute; (2) All moneys credited to the fund of every Institute shall be deposited in such banks or invested in such manner as the Institute may, with the approval of the Central Government, decide. 26 (1) The first Statutes of each Institute shall be frame by the Central Government with the prior approval of the Visitor and a copy of the same shall be laid as soon as may be before each House of Parliament. They have stated that under clause 26(4) a new Statute amending or repealing the existing Statutes shall have no validity unless it has been assented to by the Visitor. In addition, the Central Government shall establish a Central bo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en for which the clarification has been sought. It was also decided that on receipt of above another hearing may be extended. 3.2 In furtherance to the above hearing, the applicant vide their letter dated 13.09.2020 submitted the following: * Copy of National Institute of Technology act of 2017. * The applicant has stated the following: i. In respect of works contract for National Institute of Technology, the tenders for construction are issued by CPWD and the amount payable for the construction is issued by CPWD and the amount payable for the construction will be paid by us to CPWD. The contractor who executes the work will claim GST on the taxable value from CPWD and the same will be paid by them. ii. The applicant is availing the Security services and paying GST on them. There are certain Securities agencies which are not Limited Companies and the payment made to them are liable to GST under Reverse Charge Mechanism. iii. In respect of legal Fees paid to advocates, they have stated that they are liable under Reverse Charge Mechanism to pay the GST. There also certain services which are covered under Notification No; 13/2017 for which they are liable to pay under Reve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... p on scope of work, terms and conditions of work and payment, sample contracts /invoices. Further in respect of ruling sought under Section 9(3) of CGST Act 2017 the applicant was asked to furnish the details of security agencies/ service providers with their constituents along with sample bills/invoices, sample bills for legal fees paid to advocate, invoice copies for online non educational journals/periodicals provided to them by person located in non-taxable territory. 3.6. In response to the cited letter, the applicant furnished the following documents: i. Sample invoice copies, tender document for Labour contract/Security services/Man power supply services ii. List of inward services availed by them from proprietors, sample invoices and tender document. iii. Copy of cheque voucher for legal fees/expenses paid. 3.7. On perusal of the above documents the registry issued a notice on 25.02.2021 seeking details of list of service providers both registered and unregistered with their constituents for which the applicability of provisions of Section 9(3)/9(4) has been sought by them. It was also informed that q.no.3 of their application is on eligibility of Sl.no.3/3A of Noti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uthority. 6. We have carefully examined the written submission arguments made by the applicant at the time of hearing, further submission and submission made by the respective jurisdictional authority. The applicant, National Institute of Technology, Tiruchirappalli( NITT) was started as a joint co-operative venture of the Government of India & Government of Tamilnadu in 1964 with a view to catering to the needs of man-power in technology for the country. NITT is covered under the National Institute of Technology Act, 2007. In the course of discharging the functions as per the NIT, 2007, the applicant engages suppliers to provide certain services like pure labour services and supply of composite services. They have sought ruling on the following questions: 1. Whether National Institute of Technology, Tiruchirappalli (NITT) is a Government Entity under GST Law. 2. If the answer to question is in the affirmative, whether 2.1. The applicant is liable to deduct tax at source (TDS) under Section 51 of the CGST Act, 2017. 2.2. Whether the applicant is required to discharge Liability on reverse charge basis on supply of services as per Section 9(3) and 9(4) of the CGST Act, 2017. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ect of the applicant. (2) The advance ruling referred to in sub-section (1) shall be binding unless the law, facts or circumstances supporting the original advance ruling have changed. From the above provisions, it is found that * as per Section 9 (3) of the ACT, the provisions of this Act shall apply to such recipient as if he is the person ' liable 'for paying the tax in relation to supply of such goods or services or both; * chapter dealing with the provisions of Advance Ruling, starts with the wordings `unless the context otherwise requires' * definition of 'Advance ruling' means a decision provided by the Authority or the Appellate Authority to an applicant on matters or on questions specified in sub-section (2) of section 97 or sub-section (1) of section 100, in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant. * The ruling applies only to the applicant, jurisdictional authority and the concerned authority It is apparent from the above that as per S.9(3), the provisions of the Act is applicable to recipient as if he is the person 'liable for paying the tax in relation to supp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r 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." and Whether Composite supply of works contract provided to the applicant is covered by Serial No.3 (vi) of Notification 11/2017 dated 28th June 2017. The applicant has contended that they are entitled for exemption under Sl.No.3 & 3A of Notification 12/2017 as they are rendering educational services which is covered under Twelfth Schedule under Article 243W as well as in Eleventh Schedule under Article 243 G of Constitution of India; and that the exemption is claimed in respect of pure services such as security services, man power services, etc/composite services, which has goods component as 25% or less, received by them and they may be liable to pay the tax under RCM; They seek their eligibility to preferential rate at 3(vi) of Notification No. 11/2017-C.T.(Rate) dated 28.06.2017 in respect of works contract service provided to them by CPWD. As discussed in para 7.2 above, ruling can be sought by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tary of Ministry of HRD, Principal Advisor, Planning commission, Secretary, Chairman, UGC, Department of Science& Technology. Director General of CSIR will be the educational advisor and financial advisor will be from Ministry of HRD, two representatives from Industry will be nominated by the Central Government. The NIT Act, 2007 enacted wherefrom the applicant becomes an entity set up by an Act of Parliament in as much as the said Act in S.3 (c) defines 'corresponding institute' as that specified in Column 3 of the schedule i.e., National Institute of Technology, Tiruchirapalli, a society registered under the Tamilnadu Societies Registration Act, 1975 and 'Institute' under the Act specified in Column 3 of the Schedule i.e, National Institute of Technology, Tiruchirapalli. Further the institute initially and also after the enactment of the NIT Act, has been receiving funds from the central Government by way of fund which substantiates the requirement of more than 90% financial participation from the central or state Government. Thus the NITT satisfies the conditions prescribed to be held as 'Government entity' under the CGST Act, 2017 which we do so. 8.2. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pient of Service 14. Security Services (Services provided by way of supply of security personnel) provided to a registered person: Provided that nothing contained in this entry shall apply to,- (i)(a) a Department or Establishment of the Central Government or State Government or Union Territory: or (b) local authority; or (c) Governmental agencies; Which has taken registration under the Central Goods and Services Tax Act, 2017 (12 of 2017) only for the purpose of deducting tax under section 51 of the said Act and not for making a taxable supply of goods or services; or (ii) a registered person paying tax under section 10 of the said Act. Any person other than a body corporate A registered person, located in the taxable territory. From the above provisions, it is found that the security services provided by any person other than a body corporate, received by a registered person is taxable by RCM. In this case, the applicant is registered under GST. In respect of security services they have submitted copies of Tax invoices no.240/CISB/20-21 dt. 31.10.2020 raised by M/s. CIS Bureaus Facility Services Pvt Ltd bearing GSTIN No.33AACCC6334Q2ZE. From the invoices submitted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... item (b), the following item shall be inserted, namely: - "(ba) way of supply of online educational journals or periodicals to an educational institution other than an institution providing services by way of- 2 (i) pre-school education and education up to higher secondary school or equivalent; or (ii) education as a part of an approved vocational education course;"; Applicant have stated that such online education journals and periodicals provided to them are exempt from IGST vide the above entry and therefore they are liable to pay tax by RCM on online non-education journals. They have submitted copy of application for remittance in Foreign exchange for GBP 1,656/-(British Pound Sterling) towards renewal subscription to Emerald e-journal for the period from 01.10.2020 to 30.09.2021. But they have not submitted whether the said journal is educational or non-educational in nature. However if the subscription is towards online non-educational journals, the exemption is not applicable and NITT is liable to pay tax under RCM. 9. In view of the above, we rule as under: RULING 1. The National Institute of Technology, Tiruchirappalli (NITT) is a Government Entity under GST La ..... X X X X Extracts X X X X X X X X Extracts X X X X
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