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TMI Blog2020 (11) TMI 1029X X X X Extracts X X X X X X X X Extracts X X X X ..... Ruling, a reference to such a similar provision under the CGST or MP GST Act would he mentioned as being under the GST Act. 3. BRIEF FACTS OF THE CASE - 3.1. Centre for Entrepreneurship Development MP. Bhopal (hereinafter referred to as "CEDMAP" or "the Applicant") is established as a Society. registered under MP Societies Registrikaran Adhiniyam, 1973 and having its Head Office at 16-A. Arera Hills. Bhopal 462011 (MP). 3.2. The applicant is registered under the MPGST/ CGST Act 2017 vide GSTIN-23AAAAC0450D1ZO. 3.3. CEDMAP is an autonomous, not for profit, registered society under Department of Micro. Small and Medium Enterprises. Government of Madhya Pradesh. Principal Secretary of the Department of Micro Small & Medium Enterprises. Government of Madhya Pradesh is the Chairman of the governing body of CEDMAP. 3.4. CEDMAP has been formed with objective of - * To search. encourage & identify and select potential entrepreneurs and develop them for setting up tiny. rural. small or medium ventures. * To provide training and instruction in all aspects of setting up: running a venture to potential and existing entrepreneurs, educate unemployed, low income and under-privileged gr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of government of Madhya Pradesh which have issued the work order to M/s CEDMAP for skill training to the youth in the district of Singrauli in Tourism and Hospitality, Healthcare, Retail IT-IES and construction sector. The said services provided by M/s CEDMAP to Jilia Panchayat, Singrauli will be exempted. (a) If the services provided are covered under "Technical training and vocational education" at point No.18 of functions entrusted to a Panchayat under article 243G of the Constitution, (b) and the services provided are "Pure service" (excluding works contract service or other composition supplies involving supply of any goods) as mentioned in Notification No.12/2017 Central Tax(Rate) dated 28.06.2017. 6. RECORD OF PERSONAL HEARING - 6.1 Shri Navneet Garg, CA appeared on behalf of the applicants for personal hearing on electronic mode on 20.08.2020 and he reiterated the submissions already made in the application and Annexure with the application and also submitted the written submission specifically mentioning the eligibility for exemption granted under entry No. 3 of Notification No. 12/2017-CT (R). dated 28th June 2017. He also sought to submit copies of certain docum ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rovided by the applicant to Jila Panchayat Singrauli are not covered in exclusion clause pertaining to 'works contract service' or 'composite supplies involving supply of any goods'. 6.8. As the above said work. has been awarded by Jila Panchayat, Singrauli under Deendayal Antyodaya Yojana. State Rural Livelihood Mission for a consideration of Rs. 15.000/- per trainee to he paid by Jila Panchayat. Singrauli hence it is clear that the applicant is providing training services to Local Authority. 6.9. Another condition to be satisfied is that the activity must be 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 hence to understand it better the Article 243G & 243W are being reproduced as follows:- Article 243G in The Constitution of India Subject to the provisions of this Constitution, the Legislature of a State may, by law, endow the Panchayats with such powers and authority as may be necessary to enable them to function as institutions of self-government and such law may contain provisions for the devolution of powers and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on, including primary and secondary schools. 18. Technical training and vocational education. 19. Adult and non-formal education. 20. Libraries. 21. Cultural activities. 22. Markets and fairs. 23. Health and sanitation, including hospitals, primary health centres and dispensaries. 24. Family welfare. 25. Women and child development. 26. Social welfare, including welfare of the handicapped and mentally retarded. 27. Welfare of the weaker sections, and in particular, of the Scheduled Castes and the Scheduled Tribes. 28. Public distribution system. 29. Maintenance of community assets TWELFTH SCHEDULE (Article 243W) 1. Regulation of land use and construction of land buildings. 2. Urban planning including the town planning. 3. Planning for economic and social development 4. Urban poverty alleviation 5. Water supply for domestic, industrial and commercial purposes 6. Fire services 7. Public health sanitation, conservancy and solid waste management 8. Slum improvement and up-gradation 9. Safeguarding the interests of the weaker sections of society, including the physically handicapped and mentally unsound 10. Urban forestry, protection of env ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d a copy of work order which is awarded to them. 6.17. The applicant argued that the work order awarded to them for giving training and providing employment comes under the exemption provided in Notification No. 12/2017-CT (R). dated 28th June 2017. The arguments given in this regards are as following : 6.17.1. As per the Sanction order. CEDMAP has to give "Training cum Placement" to 1.000 unemployed youth of Singrauli District. 200 Trainees each in the field of Tourism and Hospitality. Healthcare. Retail. IT-ITES and Construction. CEDMAP shall be paid Rs. 15.000/- per trainee for such services. 6.17.2 Thus, the work order mentions the nature of works as 'Training Cum Placement' and the consideration has been decided to be Rs. 15.000/- per trainee, followings are the detailed terms and conditions : a. To prepare the detailed programme for training of unemployed youth of Singrauli District as per the interest, qualification and capability of each individual trainee. b. 200 trainees are to be trained in each of following streams- i. Tourism & Hospitality. ii. Healthcare iii. Retail. iv. IT-ITES v. Construction c. After training, placement has to be provid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y. Illustration: Where goods are packed and transported with insurance, the supply of goods, packing materials. transport and insurance is a composite supply and supply of goods is a principal supply: 6.17.7. As per Sec 8 of CGST Act 2017- The tax liability on a composite or a mixed supply shall be determined in the following manner, namely:- (a) a composite supply comprising two or more supplies. one of which is a principal supply, shall be treated as a supply of such principal supply: and (b) a mixed supply comprising two or more supplies shall he treated as a supply of that particular supply which attracts the highest rate of tax. 6.17.8. Referring the provisions of Section 2(30) read along with Section 8 of CGST Act 2017 followings are the key principals- a. two or more taxable supplies of goods or services or both, or any combination thereof. b. which are naturally bundled and c. supplied in conjunction with each other in the ordinary course of business. d. one of which is a principal supply e. a composite supply comprising two or more supplies, one of which is a principal supply, shall be treated as a supply of such principal supply: 6.17.9. Here, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provided to the Central Government. State Government or Union territory or 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 (Heading 99) 7.4 For availing exemption the condition w.r.t. a) supply should be of pure service. and b) criteria of service receiver should be satisfied. 7.5 For the same. status of M.P. DAY Rajya Gramin Ajivika Mission needs to be ascertained. Relevant definition(s) are reproduced for reference. "Governmental Authority" means an authority or a board or any other body. - (i) set up by an Act of Parliament or a State Legislature: or (ii) established by any Government, with 90per cent, or more participation by way of equity or control, to carry out any function entrusted to a Municipality under Article 243 W of the Constitution or to a Panchayat under Article 243G of the Constitution. "Government Entity" means an authority or a board or any other body, including a society, trust, corporation. (i) set up by an Act o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty. 7.8 In this regard the applicant has been asked to submit the constitution of M.P. DAY Rajya Gramin Ajivika Mission so as to examine whether it is covered under governmental authority or government entity. However, the applicant's could not give requisite information about constitution of M.P. DAY Rajya Gramin Ajivika Mission and how the Exemption is available to the applicant under entry no. 3 to Notification No. 12/2017 CT (Rate) dated 28th June 2017. 7.10 Having regard to discussions and findings detailed in foregoing paras, we now give our ruling. 8. Ruling 8.1. Considering the Argument and submission by the Applicant in respect of the question number 1 raised before this authority. it is ruled that the Applicant is not eligible to get benefit covered under the entry no 3 of Exemption Notification No. 12/2017 Central Tax (Rate) dated 28th June 2017 for the work order for which ruling has been asked for. 8.2. This Authority rules that the Applicant is liable to pay Goods & Service Tax on the work order for which ruling has been asked for. 8.3 The ruling is valid subject to the provisions under section 103 (2) until and unless declared void under Section 104 (1) of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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