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TMI Blog2022 (6) TMI 756X X X X Extracts X X X X X X X X Extracts X X X X ..... 17, within a period of 30 days from the date of service of this order. PROCEEDINGS 1. This is an application under Sub-Section (1) of Section 97 of the Central Goods & Service Tax Act, 2017 and Uttarakhand State Goods & Service Tax Act, 2017 (hereinafter referred to as CGST/SGST Act) and the rules made there under filed by M/s Garhwal Mandal Vikas Nigam Limited, Rajpur Road, Dehradun Uttarakhand, 248001, (herein after referred to as the "applicant"), an undertaking of Government of Uttarakhand and registered with GSTIN- 05AACCG6021E1Z7 under the CGST Act, 2017 read with the provisions of the UKGST Act, 2017. In the application dated 17.01.2022, the applicant submitted that they are receiving consideration for implementation of var ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eference to the same provisions under the SGST Act. 4. The Advance Ruling under GST means a decision provided by the authority or the appellate authority to an applicant on matters or on questions specified in sub-section (2) of section 97 or sub section (1) of section 100 in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant. 5. As per the said sub section (2) of Section 97 of the Act advance ruling can be sought by an applicant in respect of: (a) Classification of any goods or services or both (b) Applicability of a notification issued under the provisions of this Act, (c) Determination of time and value of supply of goods or services or both, (d) Admissibility of i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed (GMVN Ltd.) is an undertaking of Government of Uttarakhand and their main activity is to promote steady and sustained growth phase of the travel and tourism sector in Uttarakhand by making the destinations more accessible, more attractive with many facilities and amenities for the tourists in the Uttarakhand State. Further, they have two sections which are Engineering Section and Tourism Section. And this application pertains to the engineering section and reference to M/s GMVN Ltd. would refer to the engineering section. (ii) They also undertakes activities of restoration and repair works of wayside amenities, tourist rest houses, tourist bus stands and development and reconstruction and maintenance of other infrastructure facilities f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upply of services as referred to in Schedule II." As per Schedule II the following shall be classified as supply of goods or supply of services. The relevant extracts are: "Section 6. Composite supply The following composite supplies shall be treated as a supply of services, namely:- (a) works contract as defined in clause (119) of section 2f Further, in Section 2 of the CGST Act, 2017, "works contract" has been defined as: "2(119)- works contract means a contract for building, construction, fabrication, completion, erection, installation, fitting out, improvement, modification, repair, maintenance, renovation, alteration or commissioning of any immovable property wherein transfer of property in goods (whether as goods or in some ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , 2017, consequently the activity undertaken by the applicant for the State/Central Government or local authority amount to supply as defined in section 7 of the CGST Act, 2017. 8.4 We observe that the applicant in their application under reference has accepted on their own that the amount received is consideration, the activity undertaken by them for the Government amount to Supply as defined in section 7 of the CGS Act, 2017 and that the work undertaken is a service and hence not under dispute. 8.5 Now, we take up the issue of the type of supply i.e. whether the works referred to in by the applicant is supply of goods or supply of services. 8.5.2 We find that from the definition of scope of supply, Composite supply and works contract a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... State Government' Union territory, local authority or any person specified by Central Government, State Government, Union territory or local authority is exempt from payment of GST, if the consideration received from Central Government, State Government, Union Territory or local authority, is in the form of grants. We find that from the wordings of the said notification it is clear that exemption is available, only, if the consideration received is in the form of grants and has to be utilized for the intended purpose only. The litmus test in such cases would be the character of the consideration and if it qualifies to be a grant then and only then the benefit under the provisions of Notification No. 12/2017-CT (Rate) dated 28.06.2017, i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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