TMI Blog2023 (7) TMI 701X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 2 (i) and (xviia) Of the said Act as amended by the Kerala Conservation of Paddy Land and Wetland (Amendment) Act, 2018; Change of nature of unnotified land means such act or series of acts whereby the nature of an unnotified land is changed or has been changed irreversibly and in such a manner that it cannot be reverted back to the original condition by ordinary means; and unnotified land means the lands within the area of jurisdiction of the Committee which have been included as paddy land or wetland in the basic tax register maintained in Village offices, but are not notified as paddy land or wetland under sub-section (4) of section 5 or where data bank has not been published under the provisions of clause (i) of sub-section (4) of section 5, the lands which are already been filled up on the date of commencement of this Act and axe not paddy land according to the report of the Kerala State Remote Sensing Centre and the Local Level Monitoring Committee or where the report of the Kerala State Remote Sensing Centre is not available, lands which are not paddy land according to the report of the Local Level Monitoring Committee. On a combined reading of the definitions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ngly, a reference hereinafter to the provisions of the CGST Act, Rules and the notifications issued there under shall include a reference to the corresponding provisions of the KSGST Act, Rules and the notifications issued there under. 3. The applicant requested an advance ruling on the following: Whether the reverse charge liability under Notification No. 13/2017 CT (Rate) dated 28-06.2017 is attracted on the payment made to the Government of Kerala under Section 27A of The Kerala Conservation of Paddy Land and Wetland Act, 2018 for change of description of land from wetland to ordinary land in Government of Kerala village office records and permission for construction of office complex for the purpose of business. 4. The contentions of the applicant: 4.1. The applicant submits that their major business income consists of income from gold loans, income from money transfer business, purchase and sale of foreign currency etc. They discharge the GST liability on their output services and also discharge GST on reverse charge liability in terms of Notification No. 13/2017 CT (Rate) dated 28406.2017. They are regular in filing GST returns. They own 0.5 Ares (58 Cents) of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entral Government or the State Government or any local authority in which they are engaged as a public authority shall be treated neither as a supply of goods nor a supply of service, namely services by way of any activity in relation to a function entrusted to a Panchayat under Article 243 G of the Constitution. 4.5. The scope of this notification is that to become a non-supply as envisaged in the notification, service rendered by Central or State Government or local authority must be in relation to a function entrusted to a Panchayat under Article 243G of the Constitution. In relation to means that services other than directly rendered by the Government for the purpose of any function entrusted to Panchayat under Article 243 G of the Constitution also will qualify within the meaning of service rendered by the Government as per the Notification. 4.6. Article 243 G of the Constitution of India and the Eleventh Schedule is reproduced below; 243G. Poitiers authority and responsibilities of Panchayath: Subject to the provisions of this Constitution the Legislature of d State may by law, endow the Panchayats with such powers and authority as may be necessary to enable t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a Conservation of Paddy land and Wetland Act 2018, to get the description of land in the village records from wetland to ordinary land, Kerala Conservation of Paddy land and Wetland Act, 2018 was enacted to provide for the conservation of paddy land, and wetland and to restrict the conservation or reclamation thereof, in order to promote agricultural growth to ensure food security and to sustain the ecological system in the State of Kerala. 4.9. Section 27 A of the Kerala Conservation of Paddy Land and Wetland Act 2018 is reproduced below; 27A. Change of nature of unnotified land:- (1) if any owner of an unnotified land desires to utilize such land for residential or commercial or for other purpose shall apply to the revenue divisional officer for permission in such manner as may be prescribed. (2) Notwithstanding anything contained in any judgement decree or order of any court or tribunal or any other authority, the Revenue Divisional Officer may after considering the reports of the village officer concerned, pass such orders as deemed fit and proper, on such, applications, ensuring that there is no disruption to the free flow of water to the neighbouring paddy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... overnment is not a consideration for any supply and cannot be taxed. The fee paid is a statutory payment under Section 27A of the Conservation of Paddy land and Wetland Act, 2018 to get certain privilege under statute and is not a consideration for rendering any service. Fee payable under a statute has to be distinguished from a consideration which is outcome of an agreement entered into to get service. In view of the fact that (i) there was no supply as per Notification No. 14/2017; and (ii) there was no consideration for rendering any service, service tax liability is not attracted and consequently reverse charge liability also is not attracted. 5. Comments of the Jurisdictional Officer: The application was forwarded to the jurisdictional officer as per provisions of Section 98(1) of the CGST Act. The jurisdictional officer has not submitted any remarks and hence it is presumed that the jurisdictional officer has no specific comments to offer. It is also construed that no proceedings are pending on the issue against the applicant. 6. Personal Hearing: The applicant was granted an opportunity for a personal hearing on 08.12.2021. Shri. K.R. Ramankutty, Chartered Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... government or Union territory or local authority as public authority; 2. The activity shall be in relation to any function entrusted to a Panchayat under Article 243 G of the Constitution or in relation to any function entrusted to municipality under Article 243 W of the Constitution, 7.4. Now, it is to be examined whether the activity under discussion satisfies the above conditions to be covered under Notification No. 14/2017 CT (Rate) dated 28.06.2017. 7.5. The Kerala Conservation of Paddy Land and Wetland Act, 2018 is an act to conserve the paddyland and wetland and to restrict the conversion or reclamation thereof, in order to promote growth in the agricultural sector and to sustain the ecological system, in the State of Kerala. The Preamble of the said Act reads as follows; Whereas if has come to the notice of the Government that indiscriminate and uncontrolled reclamation and massive conversion of paddy land and wetland is taking place in the State; And whereas there is no existing law to restrict effectively, the conversion or reclamation of paddy land; And whereas the Government are satisfied that it is expedient, in the public interest to provid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Revenue Divisional Officer for permission in such manner as may be prescribed. (2) Notwithstanding anything contained in any judgment decree or order of any court or tribunal or any other authority, the Revenue Divisional Officer may after considering the reports of the village officer concerned, pass such, orders as deemed fit and proper on such applications, ensuring that there is no disruption to the free flow of water to the neighbouring paddy lands, if any, through such water conservancy measures as is deemed necessary: Provided that, if the area of such parcel of land where the application is allotted is more than 20.02 Ares, ten percent of such land shall be set apart for water conservancy measures. (3) If the application is allowed, the applicant shall be liable to pay a fee at such rate as may prescribed: Provided that, no such fee shall be collected if the applicant proves that the land where the application is allowed is, filled up or naturally filled up before the 4th day of July, 2967, the date of commencement of the Kerala Land Utilization Order, 1967, after completing such procedure, as may be prescribed. (4) If the application is allowed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fied land for public purpose: Provided that where permission is granted, the Government may make necessary modifications to the recommendations of the Revenue Divisional Officer as deemed fit: ? Provided further that, if the area of such parcel of land where the application is allowed is more than 20.2 ares, ten percent of such land shall be set apart for water conservancy measures. (10) The order issued under sub-section (2) and (9) shall clearly indicate the survey number of the lands and the extent of the land in each survey number for which, sanction has been accorded, the extent of the land in which water conservancy measures are to be adopted by the applicant and a sketch of such land indicating the aforementioned details shall be appended to the order. (11) The Revenue Divisional Officer may, either suo moto or on the application of any aggrieved party, cancel any order issued under subsection (2) if the conditions specified in the order issued therein are not complied by the applicant, either fully or partially. (12) No order of cancellation under sub-section (11) shall be made by the Revenue Divisional Officer unless the applicant thereof has been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct 2008 as inserted by the Kerala Conservation of Paddy Land and Wetland (Amendment) Act, 2018 is an activity undertaken by the State Government as a public authority the same cannot be considered to be an activity in relation to any function entrusted to a Panchayat under Article 243 G of the Constitution. Therefore, the activity cannot be treated as 'neither a supply of goods nor a supply of service' in terms of Notification No. 14/2017 Central Tax (Rate) dated 28.06.2017 as amended. Given the observations stated above, the following rulings are issued: RULING Question: Whether the reverse charge liability under Notification No. 13/2017 CT (Rate) dated 28,06.2017 is attracted on the payment made to the Government of Kerala under Section 27A of Kerala Conservation of Paddy Wetland Act 2018 for the change of description of land from wetland to ordinary land in Government of Kerala village office records and for permission for construction of office complex for the purpose of business? Ruling : Yes, The activity cannot be treated as 'neither a supply of goods nor a supply of service in terms of Notification No. 14/2017 Central Tax (Rate) dated 28.06.2 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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