TMI Blog2022 (11) TMI 1181X X X X Extracts X X X X X X X X Extracts X X X X ..... r Article 243W, hence the supply received by the applicant does not fall under Sl.No 3 of Central tax (rate) notification no 12/2017 and are not exempted - The board also receives insurance services to vehicles which are used for transportation of water and sewerage management, since these vehicles are essential for performing the functions as entrusted in 243W of the constitution. The applicant is eligible for exemption under entry mentioned above. All other vehicles which are not used for performing the functions as entrusted in 243W of the constitution shall be taxable. Thus, from 18-11-2021, in view of the amendment mentioned, omitting the word Government authority , the services provided to the applicant are not eligible for exemption under Sl.No 3 of Notification no 12/2017 dated 28-06-2017. - AAAR.COM/09/2022 Order-in-Appeal No. AAAR/12/2022 - - - Dated:- 2-11-2022 - NEETU PRASAD AND B.V. SIVA NAGA KUMARI, MEMBER (Passed under Section 101 (1) of the Telangana Goods and Services Tax Act, 2017) Preamble 1. In terms of Section 102 of the Telangana Goods and Services Tax Act, 2017 (TGST Act, 2017 or the Act), this Order may be amended by the Appellate auth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mployees, pensioners and their family members and Vehicle insurance Policy taken to provide Insurance to the vehicles owned by the Board. 2. In their opinion they are exempt from paying GST in view of the Entry No. 3 of the Notification Number 12/2017 - Central Tax (Rate), dt 28th June, 2017, wherein it is provided that 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, the rate of GST is NIL. In their opinion being a governmental authority, the above entry No.3 is applicable to them. 3. The applicant filed an appeal before the lower authority seeking advance ruling on the following questions. (1) Does Medical insurance premium taken to provide health Insurance to the employees, pensioners and their family members, eligible for exemption as mentioned in Entry No. 3 of the Notification Numbe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons of Hyderabad Metropolitan Water Supply and Sewerage Act 1989 (Act No . 15 of 1989), with the following Functions Responsibilities in the Hyderabad Metropolitan Area. The Supply of potable water including planning, design, construction, maintenance, operation management of water supply system. Sewerage, Sewerage Disposal and sewerage treatment works including planning, design, construction, maintenance, operation management of all sewerage and sewerage treatment works. From 01-07-2017 to 17-11-2021 : As per Sl.No 3 of Central Tax(Rate) notification no 12/2017 dated 28-06-2017 the rate of tax on supply of following services is Nil: 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 Centr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3) After 01-01-2022, exemption is available only if it is provided to Central Government, State Government and Local Authority only Since, insurance services are pure services; the condition at Sl.No 1 is satisfied. Regarding condition at Sl. No 2: If the services procured by the board are by way of any activity in relation to any function entrusted to a Municipality (like water supply and sewerage), the supply is exempt from tax. The insurance supplies made to the board for its employees and their family members are not in relation to any function entrusted to the municipality. The word in relation to will include only functions which are in direct relation to the entry like water supply and sewerage. The Constitutional Bench (five-judge bench) of the Supreme Court in the case of Commissioner of customs(import) , Mumbai Vs Dilip Kumar and Company Ors ( 2018 ) 9 SCC 1 has held that the exemption notification should be interpreted strictly , It was held as follows: .. 52.To sum up, we answer the reference holding as under- (1) Exemption notification should be interpreted strictly; the burden of proving applicability would be on the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 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 In view of the above from 18-11-2021, in view of the amendment mentioned above omitting the word Government authority , the services provided to the applicant are not eligible for exemption under Sl.No 3 of Notification no 12/2017 dated 28-06-2017. 13. In the light of the foregoing, we pass the following: ORDER Question Ruling Does Medical insuran ..... X X X X Extracts X X X X X X X X Extracts X X X X
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