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TMI Blog2021 (11) TMI 150X X X X Extracts X X X X X X X X Extracts X X X X ..... ke it clear that the provisions of the Central Goods and Services Tax Act, 2017 (the CGST Act, for short) and the West Bengal Goods and Services Tax Act, 2017 (the WBGST Act, for short) have the same provisions in like matter except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the WBGST Act. Further to the earlier, henceforth for the purposes of these proceedings, the expression 'GST Act' would mean the CGST Act and the WBGST Act both. 1.2 The applicant is stated to be engaged in providing conservancy/solid waste management services as well as garbage collection and dumping services to the Conservancy Department of the Howrah Municipal Corporation (HMC, for short). 1.3 It is submitted by the applicant that the HMC is deducting TDS in terms of Notification No. 50/2018 - Central Tax dated 13/09/2018 (corresponding West Bengal State Notification No. 1344 - F.T. dated 13/09/2018) and State Government Order No. 6284 -F(Y) dated 28/09/2018 (hereinafter collectively referred to as TDS Notifications) while paying consideration for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... exempt supply to the HMC, the provision of section 51 shall not be applicable in his case. 3. Submission of the Revenue The concerned officer from the revenue has expressed his view in writing which is reproduced verbatim as under: 3.1 SI. No. 3 of the Exemption Notification exempts from payments of GST any "pure service" (excluding works contract service or other composite supplies involving supply of any goods) provided to the Central Government, State Government or Union territory or local authority or a Government authority 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. 3.2 SI. No. 3A of the Exemption Notification further extends it as Composite supply of goods and services in which the value of supply of goods constitutes not more than 25 per cent. of the said composite supply provided to the Central Government, State Government or Union territory or local authority or a Government authority by way of any activity in relation to any function entrusted to a Panchayat under article 243G of the Constitution or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the ST notification under the service tax exempts "services provided to the Government, a local authority or a governmental authority by way of water supply, public health, sanitation, conservancy, solid waste management or slum improvement and up-gradation." The Circular further explains in relation to the specific issue of ambulance service to the Government by a private service provider (PSP) that such service is a function of 'public health' entrusted to Municipalities under Article 243W of the Constitution, and, therefore, eligible for exemption under Sl No. 3 or 3A of the Exemption Notification. * The above Circular leaves no doubt that the phrase 'in relation to any function', as applied to Sl No. 3 or 3A above, makes no substantial difference between Sl No. 25(a) of the ST Notification and Sl No. 3 or 3A of the Exemption Notification. Under the previous service tax regime, the exemption was limited to certain functions specified in Sl No. 25(a) of the ST Notification, whereas, under the GST the ambit has been broadened to include any such functions that are performed by a panchayat or a municipality under specific provisions of the Constitution. These functions ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ities upon Municipalities, subject to such conditions as maybe specified therein, with respect to (i) the preparation of plans for economic development and social justice; (ii) the performance of functions and the implementation of schemes as maybe entrusted to them including those in relation to the matters listed in the Twelfth Schedule; (b) the Committees with such powers and authority as maybe necessary to enable them to carry out the responsibilities conferred upon them including those in relation to the matters listed in the Twelfth Schedule. Twelfth Schedule [Article 243W of the Constitution (Seventy-Fourth Amendment) Act, 1992]: 1. Urban planning including town planning. 2. Planning of land-use and construction of buildings. 3. Planning for economic and social development. 4. Roads and bridges. 5. Water supply for domestic, industrial and commercial purposes. 6. Public health, sanitation conservancy and solid waste management. 7. Fire services. 8. Urban forestry, protection of the environment and promotion of ecological aspects. 9. Safeguarding the interests of weaker sections of society, including the handicapped and mentally retarded. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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