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TMI Blog2022 (4) TMI 1132X X X X Extracts X X X X X X X X Extracts X X X X ..... ) and registered with GSTIN- 05AAALD1881A1ZR under the CGST Act, 2017 read with the provisions of the UGGST Act, 2017 (hereinafter referred to as 'the applicant'). 2. In the application dated 24.12.2021, the applicant submitted that: 1. They are a division of Forest Department of State Government of Uttarakhand and registered with GSTIN-05AAALD1881A1ZR in Uttarakhand and engaged in various works for conservation, protection and management of natural resources, forests and wildlife. In this process, they carry out works like collection of seeds from forest, nursery management, plantation in forest, digging contour trenches, chal-khal (water conservation pits in hills) and making stone dry check dam for soil and moisture conservation, clearing of fire lines in forest to protect forest from fire which causes damage to forest, controlled burning of portion of forest to prevent spread of fire and repairing Kaccha walking trails and roads in forests. 2. The activities like collection of seeds from forest, digging contour trenches, chal-khal (water conservation pits in hills) for soil and moisture conservation, clearing of fire lines in forest to protect forest from fire ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 28-06-2017 or any other related exemption notification. 4. If above supply of service is not included in any exemption notifications as per Question 3, the rate of goods and service tax applicable to such supply of services. 5. Whether the supply of services for plantation in forest is exempted services in Notification No. 12/2017 Central Tax (Rate) dated 28-06-2017 or any other related exemption notification. 6. If above supply of service is not included in any exemption notifications as per Question 5, the rate of goods and service tax applicable to such supply of services. 7. Whether the supply of services for creation of check-dam for Soil and Moisture Conservation is exempted services in Notification No. 12/2017 Central Tax (Rate) dated 28-06-2017 or any other related exemption notification. 8. If above supply of service is not included in any exemption notifications as per Question 7, the rate of goods and service tax applicable to such supply of services. 9. The section 51 of the CGST specifies that TDS is to be deducted when total value of taxable goods or services or both under a contract exceeds Rs. 2,50,000. Most the mentioned works in this application are sm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t appeared for personal hearing on the said date and re-iterated the submission already made in their application. Ms. Preeti Manral, Deputy Commissioner, SGST-Dehradun, Concerned Officer from State Authority was also present during the hearing proceedings. She presented her facts and requested the authority to decide the case on merit. 8. We find that the applicant i.e. M/s. Divisional Forest Office, Bageshwar, Forest Compound, Kathayatbara, Bageshwar (Uttarakhand)- 263645, a division of Forest Department of State Government of Uttarakhand, registered with GSTIN-05AAALD1881A1ZR in Uttarakhand and engaged in various works for conservation, protection and management of natural resources, forests and wildlife and in the process carry out works like collection Of seeds from forest, nursery management, plantation in forest, digging contour trenches, chal-khal (water conservation pits in hills) and making stone dry check dam for soil and moisture conservation, clearing of fire lines in forest to protect forest from fire which causes damage to forest, controlled burning of portion of forest to prevent spread of fire and repairing Kaccha walking trails and roads in forests, has sought ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Lakhs in some cases. Whether, TDS is to be deducted if applicant gives contract for multiple works to the contractor, the cumulative contract value is more than Rs However, work order of single contract is less than Rs 9. We find that the applicant in their application has contended that : 1. The Ministry of Finance, Government of India via Notification No. 12/2017-Central Tax (Rate) dated 28th June, 2017 at Serial no. 3 of Table has exempted "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." 2. The Ministry of Finance, Government of India via Notification No. 12/2017-Central Tax (Rate) dated 28th June, 2017 at Serial no. 3A of Table has exempted "Composite supply of goods and services in which the value of supply of goods constitutes not more than 25 per cent. of the value of the said compo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Constitution or in relation to any function entrusted to a Municipality under article 243W of the Constitution. 10.3 We further find that vide Notification No. 2/2018-C.T. (Rate), dated 25-1-2018, the Notification No. 12/2017- Central Tax (Rate) dated 28th June, 2017 has been amended to mandate "Composite supply of goods and services in which the value of supply of goods constitutes not more than 25 per cent. of the value of the said composite supply 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 243 W of the Constitution." 10.3.2 We find that vide Notification No. 12/2017- Central Tax (Rate) dated 28th June, 2017, pure services 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, has been exempted and the functions entrusted to a Pancha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y, protection of the environment and promotion of ecological aspects. (i) Safeguarding the interests of weaker sections of society, including the handicapped and mentally retarded. (j) Stum improvement and upgradation. (k) Urban poverty alleviation. (l) Provision of urban amenities and facilities such as parks, gardens, playgrounds (m) Promotion of cultural, educational and aesthetic aspects. (n) Burials and burial grounds; cremations, cremation grounds; and electric crematoriums. (o) Cattle pounds; prevention of cruelty to animals. (p) Vital statistics including registration of births and deaths. (q) Public amenities including street lighting, parking tots, bus stops and public conveniences. (r) Regulation of slaughter houses and tanneries. 10.4 Hence we find that to avail the benefit of the provisions of above said notification, two conditions of the notification has to be fulfilled in letter and spirit, first one being that "the receiver Of services should be 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 ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of goods and services in which the value of supply of goods constitutes not more than 25% of the value of the said composite supply and on activity in relation to any function entrusted to a Panchayat under article 243G of the Constitution or to a Municipality under article 243W of the Constitution only and not in any other cases. 11. With respect to applicant's query on the provisions of TDS under section 51 of the Central Goods and Services Tax Act 2017, we observe that under Section 51 of the Act, Tax Deduction at Source has to be made, while making payments by specified person. The relevant portion is reproduced as under: "Section 51. Tax deduction at source.- (1) Notwithstanding anything to the contrary contained in this Act, the Government may mandate, (a) a department or establishment of the Central Government or State Government; or (b) local authority; or (c) Governmental agencies; or (d) such persons or category of persons as may be notified by the Government on the recommendations of the Council, (hereafter in this section referred to as "the deductor"), to deduct tax at the rate of one per cent, from the payment made or credited to the supplier (herea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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