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TMI Blog2021 (12) TMI 215X X X X Extracts X X X X X X X X Extracts X X X X ..... gency (SUDA) would fall under activities in relation to function entrusted to Panchayat or Municipality under Article 243G or Article 243W respectively, of the Constitution of India? ii. If answer to question is yes, then, Whether such services provided by the applicant would fall under "Pure Services (excluding works contract service or other composite supplies involving supplies of goods)" as provided in serial number 3 of Notification No. 12/2017-Central Tax (Rate) dated 28 June, 2017, issued under Central Goods and. Services Tax Act, 2017 (CGST) and corresponding Notification No. KA.NI.-2-843/XI-9 (47)/ 17-UP.Act-1-2017-Order-(10)-2017 Lucknow, dated 30 June, 2017, issued under Uttar Pradesh Goods and Service Tax Act, 2017 (UPGST Act), where the project cost includes the cost of service rendered along with reimbursement of cost of procurement of goods for rendering such services and thus, be eligible for exemption from levy of CGST and UPGST, respectively? 4) As -per the declaration given by the applicant in Form ARA-01, the issue raised by the applicant is neither pending in any proceedings nor decided in any proceedings in the applicant's case under any of the provisions o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted in the Twelfth Schedule; (b) the Committees with such powers and authority as may be necessary to enable them to carry out the responsibilities conferred upon them including those in relation to the matters listed in the Twelfth Schedule." (v) The extracts of Notification No. 12/ 2017-Central Tax (Rate) dated 28 June, 2017 are as follows: Table Sl.No. Chapter, Section, Heading, Group or Service Code (Tariff) Description of Services Rate (per cent) Condition 1 2 3 4 5 3 Chapter 99 Pure services (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 Governmental 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, NIL NIL (vi) SUDA is a governmental authority as the definition provided in section 2(16) of Integrated Goods & Service Tax Act, 2017. (vii) Applicant is providing pure services to SUDA, a governmental authority by way of activity (Pradhan Mantri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e CGST Act 2017 being a matter related to applicability of a notification issued under the provisions of this Act. We therefore, admit the application for consideration on merits. 11) We have gone through the submissions made by the applicant and examined the detailed explanation submitted by them. We observe that the question sought by the applicant is whether preparation of 'Detailed Project Report' (DPR) and providing Project. Management Consultancy (PMC) services for projects under Beneficiary Led Construction in Lucknow Cluster under Pradhan Mantri Awas Yojna (Urban) under an agreement with State Urban Development Agency (SUDA) would fall under activities in relation to function entrusted to Panchayat or Municipality under Article 243G or Article 243W respectively, of the Constitution of India? and if so, whether such services provided by the applicant would fall under "Pure Services" (excluding works contract service or other composite supplies involving supplies of goods)" as provided in serial number 3 of Notification No. 12/2017-Central Tax (Rate) dated 28 June, 2017, issued under Central Goods and Services Tax Act, 2017 (CGST) and corresponding Notification No. KA.NI.-2- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er of the society or any of them but shall be disposed off as directed by the Government of India or State Government". 15) As SUDA has been established as a state level nodal agency, under the department for Urban Employment and Poverty Alleviation by Uttar Pradesh Government and as per the information contained in Memorandum of Association (in Para 14 above), it is clear that SUDA is a part of State Government of UP. The said observation is further supported by the following Government Orders which is addressed to the Director, SUDA UP, Department for Urban Employment and Poverty Alleviation (available on www.shasnadesh.up.nic.in)- (i) No. 172/69-1-10-75(Sa)/97 dated 26.02.2010 and No. 123/2021/174/69-1-21-14(137)/12 dated 11.05.21 both regarding continuity of post in SUDA/DUDA UP. (ii) No. 595/69-1-10 14 (27)/ 10 dated 24.05.2010 regarding declaration of property by the employees of SUDA/DUDA UP. In view of facts stated above, atleast it can be established that SUDA falls under Government category. 16) Further, as per website of Pradhan Mantri Awas Yojana-Housing for All (Urban), Ministry of Housing and Urban Affairs, the PMAY is a Scheme to provide central assistance to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Entry * Key Stakeholder consultations * Preparation of Beneficiaries wise detailed Architectural/ Engineering designs, Drawings & Estimates for all sizes of plots * Project structuring under appropriate development and funding mechanism * Assistance in obtaining approvals from concerned agencies / departments * The Consultant shall incorporate all necessary data in reference to Slum Free City Plan in the DPR. * The DPR should be complete in all respects with all reports drawings, statements and document necessary for obtaining the grant from the Government of India. * The DPR shall be computer typed and printed and drawing should be in Auto Cad. c. Scope of work under Project Management Consultancy (PMC):- ■ PMC will coordinate, execute and monitor the activities leading to the construction of approved DUs by Govt. of India. All the activities till the completion of DUs will be taken care of by PMC. ■ PMC shall also administer the works by the beneficiaries and ensure that the agreement between the ULBs and Beneficiaries whether related to quality or quantities of works are executed in accordance with its provisions. ■ PMC shall attach Benefi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctions of all the stages ■ Visitors' Site Inspection ■ Settlement of all accounts of the beneficiaries with the ULBs ■ Provide project completions report/ closure report which shall contain all technical and financial Information of the project. 20) After examining the agreement and scope of work, we are of the opinion that services mentioned in the contract would qualify as Pure Service (excluding works contract service or other composite supplies involving supply of any goods)" as provided in serial number 3 of Notification No. 12/2017- Central Tax (Rate) dated 28 June, 2017 issued under Central Goods and Services Tax Act, 2017 ('CGST') and corresponding Notifications No. - KA.N.I.-2-843/X1-9 (47) / 17-UP. Act-1 - 2017 - Order - (10) - 2017 Lucknow, dated June 30, 2017 issued under Uttar Pradesh Goods and Service Tax Act, 2017 ('UPGST Act'). In view of the above, both the members unanimously rule as under; RULING Ruling on Question 1. We hold that the Services rendered under the contract with State Urban Development Agency, Uttar Pradesh (SUDA), and for PMAY are in relation to functions entrusted to Municipalities under Article 243W and to Panchayats u ..... X X X X Extracts X X X X X X X X Extracts X X X X
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