TMI Blog2021 (10) TMI 521X X X X Extracts X X X X X X X X Extracts X X X X ..... t that such services provided by him fall under Entry 6 of Notification No. 12/2017 dated: 28.06.2017 and therefore are exempt from any tax under GST. A careful reading of the said Entry in the Notification reveals that this entry pertains to services provided by the Government and not services provided to the Government. The applicant is providing services to the Government. Therefore the services provided by the applicant to the Government are not exempt under this Notification. Further the services provided by the applicant on behalf of the Government to business entities is covered by the exception to the above entry, therefore such services also are not exempt. Application disposed off. - A.R.Com/23/2020 TSAAR Order No.12/2021 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore any authority under any provisions of the GST Act. The application is therefore, admitted. 4. Brief facts of the case: 1. The applicant TELANGANA STATE TECHNOLOGY SERVICES LIMITED (TSTSL) Telangana State Public Sector Undertaking and TSTSL is a Service Agency to the Telangana Government and its Departments relating to Information Technology and its related services. 2. One of Such services provided by TSTSL is, acting as a fund manager on behalf of IT E C Department, Telangana State in executing e-procurement process as per GOVERNMENT the OF G.O.Ms.No.7 TELANGANA, Dated 17-11-2016 INFORMATION issued by TECHNOLOGY, ELECTRONICS COMMUNICATIONS DEPARTMENT (e-Procurement (G.O Copy Enclosed) 3. As per the guidelines issued thr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal hearing held on 09-07-2021. The authorized representatives reiterated their averments in the application submitted and contended as follows: 1. That ITE C is floating online tenders through the applicant and the applicant is collecting the transaction fees as an agent and retaining the margin amount of 5% as service charges so that 95% of the amount so collected is passed onto the principal i.e., ITE C and concerned department. 2. The applicant is desirous of ascertaining from AAR whether this transaction forms part of taxable supply and whether they are exempt under Notification No.12/2017 dated: 28.06.2017 at Serial No.6. 7. Discussions Findings: The applicant is providing service to various departments of Tela ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... refore such services also are not exempt. 8. The ruling is given as below: Question Ruling 1. Whether the e-Procurement transaction fee collected on behalf of ITE C Department of Telangana State Government towards online tenders' results in supply of goods or services or both, within the meaning of supply as defined? Yes, it falls within the meaning of supply as defined in the CGST Act, 2017 2. Whether the Tax liability arises on e-procurement transaction fee collected on behalf of State Government Department i.e., IT E C department? Yes 3. Whether this services made by State Governm ..... X X X X Extracts X X X X X X X X Extracts X X X X
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