TMI Blog2022 (12) TMI 805X X X X Extracts X X X X X X X X Extracts X X X X ..... y State Government under Rajasthan Housing Board Act 1970 (Act No. 4 of 1970) and fully controlled by state government, Thus its amply clear for us that RHB is Governmental Authority under GST Act. The said services provided by the Rajasthan Housing Board (RHB) qualifies being placed under the category of services as stipulated at sl. No. 4 under Notification No. 12/2017- (Rate). - RAJ/AAR/2022-23/20 - - - Dated:- 14-12-2022 - UMESH KUMAR GARG AND M.S. KAVIA, MEMBER Present for the applicant : CA, Manish Maliwal CA Virendra Parwal (Authorized Representatives) Note: Under Section 100 of the CGST/RGST Act, 2017, an appeal against this ruling lies before the Appellate Authority for Advance Ruling constituted under section 99 of CGST/RGST Act, 2017, within a period of 30 days from the date of service of this order. At the outset, we would like to make it clear that the provisions of both the CGST Act and the RGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the RGST Act. Further to the earlier, henc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - (1) The State Government may, by notification in the Official Gazette, establish, for the purposes of this Act, a Board to be called The Rajasthan Housing Board , hereinafter called the Board, with effect from such date as may be specified in the notification. (2) The Board shall be a body corporate having perpetual succession and a common seal with power to acquire, hold and dispose of property both immovable and immovable and to enter into contracts and may by its corporate name sue and be sued and do all things and acts necessary for the purposes of this Act. (3) For the purposes of this Act and the Rajasthan Land Acquisition Act. 1953 (Act No. XXIV of 1953), the Board shall be deemed to be a local authority. Explanation - The purposes of this Act referred to in sub-section (3) include the management and use of lands and buildings belonging to or vesting in the Board under or for the purposes of this Act and the exercise of its rights over and with respect to such lands and buildings for the purposes of this Act. 5. Constitution of the Board - The Board shall consist of a Chairman appointed by the State Government and of the following oth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and all interests, profits and other moneys accruing to the Board shall constitute the fund of the Board. (5) Except as otherwise directed by the State Government, all moneys and receipts specified in the foregoing provisions and forming part of the fund of the Board shall be deposited in the Reserve Bank of India or in any Nationalized Bank or other Scheduled Bank, invested in such securities as may be approved by the State Government. (6) Such account shall be operated upon by such officers as may be authorised by the Board. 4. That the RHB is directly controlled by the State Government and all acts of the RHB are under the supervisory control of the State Government. Reference can also be made to section 60 of the RHB Act, which states that while exercising its powers and duties under the RHB Act, the RHB shall adhere to the policies and guidelines laid down by the State Government. 60. Government's power to give directions to the Board. - The State Government may give the Board such directions as in its opinion are necessary or expedient for carrying out the purposes of this Act, and it shall be the duty of the Board to comply with such directions. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cheme with the approval of the State Government. (3) The State Government may, on such terms and conditions as it may think fit to impose, entrust to the Board the framing and execution of any housing scheme whether provided for by this Act or not, and the Board shall thereupon undertake the framing and execution of such scheme as if it had been provided for by this Act. (4) The Board may, on such terms and conditions as may be agreed upon and with the previous approval of the State Government, take over for execution any housing scheme on behalf of a local authority or co-operative society or on behalf of an employer when the houses are to be built mainly for the residence of his employees, and the Board shall execute such scheme as if it has been provided for by this Act. 8. The facilities which are to be provided in a housing scheme is mentioned in Sec. 28 of the RHB Act, which reads as under:- 28. Matters to be provided for by housing schemes - Notwithstanding anything contained in any other law for the time being in force, a housing scheme may provide for all or any of the following matters, namely: - (a) the acquisition by purchase, exchange or othe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ement or development of any area comprised in the scheme or any adjoining area or the general efficiency of the scheme. B. Interpolation and understanding of applicant on question rose (in Brief) 1. As per Interpretation of applicant the Rajasthan Housing Board is a governmental authority and the services provided by RHB are exempt in GST under the entry mentioned below. The reasoning is mentioned in the subsequent paras Vide Notification 12/2017-Central Tax (Rate) dated 28th June, 2017 (as amended) Central Government in exercise of the powers conferred by sub-section (1) of section 11 of the Central Goods and Services Tax Act, 2017 (12 of 2017) exempted intra-State supply of services of description as specified in column (3) of the Table below from so much of the central tax leviable thereon under sub-section (1) of section 9 of the said Act, as is in excess of the said tax calculated at the rate as specified in the corresponding entry in column (4) of the Table, entry specified at S.No. 4 of said notification, reproduced below:- S.No. Chapter, Sec. Heading, group or service code Description of services ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h 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 responsibilities upon Municipalities, subject to such conditions as may be specified therein, with respect to (I) The preparation of plans for economic development and social justice; (ii) The performance of functions and the implementation of schemes as may be entrusted to them including those in relation to the matters listed 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... The Twelfth Schedule for Article 243W of the Constitution (Seventy-Fourth Amendment) Act, 1992 are as follows; 1. Urban planning including town planning 2. Regulation of land use and construction of buildings 3. Planning for economic and social development. 4. Roads and bridges 5. Water supply for domestic, industrial and commercial purposes. 6. Public health, sanitation conservancy and solid waste mana ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ave been issued to the legislatures to endow powers responsibilities on the municipalities. It is, however, another matter that the State legislature has conferred the powers responsibilities on the municipalities through the RM Act. At the same time, it does not mean that the State legislature could not have conferred similar powers on any other local authority under Article 246(3), read with List II of the seventh Schedule. Thus undisputedly, the RHB is performing the public function and all the activities undertaken by RHB are for the welfare of public at large. The duties and functions of RHB are of similar to functions under Article 243 W read with the schedule 12 of the Constitution. 7. The interpretation of applicant is also supported by the advance ruling in the case of M/s Dhananjay Kumar Singh HN 13, Sanyasi Para, Khamtarai Raipur, Chhattisgarh vide Advance Ruling No. STC/ AAR/06/2018, Dated 05th December, 2018 wherein it is held that the Chhattisgarh Housing Board is a Government Authority fully owned by the State Government. In this case work of supply of services of colony maintenance with regard to solid waste management, water supply operation, garbag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Constitution and to a Panchayat under Article 243G of our Constitution and therefore, in such specific cases where GSRDC constructs municipal roads/bridges or village roads/bridges, it satisfies the definition of Government Authority . Accordingly it was held that: 1. GSRDC is a Government Entity. 2. In addition to being a Government Entity, GSRDC shall be a Government Authority, in such cases when it constructs i. Municipal Roads/ bridges; ii. Village Roads/bridges. 10. Here it would be relevant to mention that the Hon'ble Patna High Court in case of Shapoorji Paloonji Company (P) Ltd. Vs. Commissioner, Customs Central Excise Service Tax [(2016) 67 taxmann.com 218 (Patna) has examined the definition of governmental authority which is same as was in service tax. The definition given in para 2 (s) of Mega Exemption N.No. 25/2012-ST dated 20-6-20212 is reproduced below for ready 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 Government, with .90% or more participation by way of equity or control, to carry ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns entrusted to a Municipality under Article 243W of the Constitution and therefore, exempt under GST under entry 4 of the exemption Notification no. 12/2017-CT(R). 13. Applicant again made submission vide letter 22.10.2022 that RHB in capacity of Governmental Authority charge various amounts towards Map Approval fee, amount for BSUP Shelter fund, Betterment levy etc which is charged as per the Gazette Notification of Govt. of Rajasthan dated 7 Jan 2021; that as per this notification the Rajasthan Housing Board Act, 1970 is included in definition of 'Act' (sec. 2.1) and Housing Board is included in definition of 'Competent Authority' (Sec. 2.2) for charging various fees such as Map Approval Fee, Betterment levy, application fee etc. The Applicant further contended that RHB for the purpose of granting various permissions for building construction, map approval etc has been considered at par with Jaipur Development Authority as Urban Development Housing Local Self Govt. department of Govt. of Rajasthan vide office order dated 19-5-2010 and order dated 20-6-2018 has directed RHB, JDA, other development authorities, municipalities, Nagar Nigam to charge for BSUP ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... advance ruling is sought by the applicant, and relevant facts. We would like to discuss the submission made by applicant and will take up the above question for discussion one by one. 2) The applicant The Rajasthan Housing Board (RHB) is established on 24th February, 1970 vide Rajasthan Housing Board ordinance later on notified under section 4 of the Rajasthan Housing Board Act 1970 (Act No. 4 of 1970). The RHB is constituted by the State Government and in light of section 5 of the Rajasthan Housing Board Act, 1970.The duties of Rajasthan Housing board are well defined in Sec 26 28 of Rajasthan Housing Board Act, 1970. The Applicant is involved for the framing and execution of housing Schemes subject to the control of the State Government through its Board. The applicant has sought ruling on the following question: (i) Whether the Rajasthan Housing Board is covered under the definition of Governmental Authority as defined in clause (zf) Paragraph 2 vide notification no. 12/2017-Central Tax (Rate) dated 28.06.2017? (ii) Whether the services provided by the Rajasthan Housing Board as governmental authority such as permission for building construction, approval of m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction as institutions of self-government and such law may contain provisions for the devolution of powers and responsibilities upon Municipalities, subject to such conditions as may be specified therein, with respect to (i) The preparation of plans for economic development and social justice; (ii) The performance of functions and the implementation of schemes as may be entrusted to them including those in relation to the matters listed 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... The Twelfth Schedule for Article 243W of the Constitution (Seventy-Fourth Amendment) Act, 1992 are as follows; 1. Urban planning including town planning. 2. Regulation of land use and construction of buildings. 3. Planning for economic and social development. 4. Roads and bridges. 5. Water supply for domestic, industrial and commercial purposes. 6. Public health, sanitation conservancy and solid waste management. 7. Fire services. 8. Urban forestry, pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y be agreed upon and with the previous approval of the State Government, take over for execution any housing scheme on behalf of a local authority or co-operative society or on behalf of an employer when the houses are to be built mainly for the residence of his employees, and the Board shall execute such scheme as if it has been provided for by this Act. (iii) We further observes that the facilities which are to be provided in a housing scheme is mentioned in Sec. 28 of the RHB Act 1970 which is as under- 28. Matters to be provided for by housing schemes - Notwithstanding anything contained in any other law for the time being in force, a housing scheme may provide for all or any of the following matters, namely: - (a) the acquisition by purchase, exchange or otherwise of any property necessary for or affected by the execution of the scheme: (b) the laying or re-laying out of any land comprised in the scheme: (c) the distribution or re-distribution of site belonging to owners of property comprised in the scheme; (d) the closure or demolition of dwellings or portions of dwellings unfit for human habitation; (e) the demolition of obstructive bui ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bserve that authority of advance ruling have constraints up to these services. The aforesaid service supply to be provided by the applicant by their very nature appear to fall in the list of services enumerated under serial no. 1, 2, 4, 9, 12 of 12th schedule of Article 243W of the Indian Constitution, thus qualifying the admissibility criterion. 8) We observes that It has also been categorically stated by RHB that the said services are to be provided by Them. We would like to discuss relevant portion of Notification 12/2017-Central Tax (Rate) dated 28th June, 2017 (as amended) which is as under-: Vide Central Government in exercise of the powers conferred by sub-section (1) of section 11 of the Central Goods and Services Tax Act, 2017 (12 of 2017) exempted intra-State supply of services of description as specified in column (3) of the Table below from so much of the central tax leviable thereon under sub-section (1) of section 9 of the said Act, as is in excess of the said tax calculated at the rate as specified in the corresponding entry in column (4) of the Table, entry specified at S.No. 4 of said notification, reproduced below:- S.No. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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