TMI Blog2024 (4) TMI 842X X X X Extracts X X X X X X X X Extracts X X X X ..... of supply of teachers/lecturers is meant for imparting education to the students and hence it is part of promotion of educational aspects. Thus the impugned services are provided by way of an activity in relation to the function of promotion of educational aspects entrusted to the Municipality (BBMP) under article 243W of the Constitution. The service of supply of teachers/lecturers to schools/colleges run by BBMP, on outsource basis is covered under pure services being provided to a local authority (BBMP) by way of an activity in relation to a function Promoting educational aspects entrusted to a Municipality under article 243W of the Constitution of India and hence are exempted in terms of entry number 3 of Notification 12/2017-Central Tax (Rate) dated 28.06.2017, as amended. - DR. M.P. RAVI PRASAD AND SRI. KIRAN REDDY T, MEMBER Represented by : Sri. Viyayakumar, Proprietor ORDER UNDER SECTION 98(4) OF THE CGST ACT, 2017 AND UNDER SECTION 98(4) OF THE KGST ACT, 2017 M/s. Crystal Infosystems and Services (herein after referred to as 'Applicant'), #5597, N S S Complex, 2nd Floor, B H Road, Nelamangala, Bengaluru -562 123, Karnataka, having GSTIN 29ABCPV2897B1ZB, have file ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... It is observed that only one question is with regard to applicability of notification and the remaining are not covered under the issues mentioned under Section 97(2) of the CGST Act 2017. Thus only one question, with regard to applicability of a notification issued under the provisions of the CGST Act 2017 to the services being provided by the applicant to BBMP, is admissible under Section 97(2)(b) supra and accordingly the instant application is partially admissible. 5. BRIEF FACTS OF THE CASE: The applicant furnished the following facts relevant to the issue: 5.1 The applicant is involved in supply of Teachers and Lecturers to BBMP schools and colleges on outsourcing basis, which is a pure service as no goods are associated with the supply. They are charging 18% GST at present, but the recipient BBMP, being a Municipality (Municipal Corporation), is not paying GST on the basis that the service is of pure nature, BBMP is a Municipality constituted by Government of Karnataka and the service is in relation to the functions covered under 12th Schedule, Article 243 W of Constitution of India and thus the services are exempted under entry number 3 or 3A of the Notification No. 12/2017 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sionerate, Bengaluru vide letter bearing reference E-office Legal BNW dated 07.02.2024 offered comments in respect of the instant application inter-alia stating as under: 7.1 The applicant sought advance ruling as to whether the supply of teachers and lecturers to BBMP schools and colleges are exempt from GST, on claiming that the recipient of services BBMP is refusing to pay GST on the basis that the said services are exempted as the said services have been rendered to Municipality under Article 243 W of the Constitution of India. 7.2 Article 243 W of the Constitution of India, under 12th Schedule, contains 18 items and the manpower supply of services of supply of teachers/Lecturers to BBMP are not provided by way of any activity in relation to any function entrusted to a Municipality under Article 243 W of the constitution and hence the said services attract GST@ 18%. PERSONAL HEARING PROCEEDINGS HELD ON 23.01.2024 8. Sri. Viyayakumar, Proprietor of the applicant appeared for personal hearing proceedings and reiterated the facts narrated in their application. FINDINGS DISCUSSION 9. At the outset we would like to make it clear that the provisions of CGST Act, 2017 and the KGST Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... luding works contract service or other composite supplies involving supply of any goods)? b. Whether the said services are provided to the Central Government, State Government or Union territory or local authority? c. Whether the impugned services are provided 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? 13. Now we proceed to examine the fulfillment of above conditions one by one. The applicant is involved in supply of teachers / lecturers to the schools/colleges run by BBMP. There is no supply of goods involved in provision of service. Further the impugned service is neither a works contract service nor a composite supply of service involving supply of any goods. Thus the impugned service qualifies to be a pure service. 14. Now we proceed to examine the second condition as to whether the recipient BBMP qualifies to be a local authority or not. In this regard we invite reference to Section 2(69)(b) of CGST/KGST Act 2017 which defines Local Authority to mean a Municipality as defined in clause (e) of article 243P of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 12. Provision of urban amenities and facilities such as parks, gardens, playgrounds. 13. Promotion of cultural, educational and aesthetic aspects . 14. Burials and burial grounds; cremations, cremation grounds and electric crematoriums. 15. Cattle pounds; prevention of cruelty to animals. 16. Vital statistics including registration of births and deaths. 17. Public amenities including street lighting, parking lots, bus stops and public conveniences. 18. Regulation of slaughter houses and tanneries. It could be seen from the list supra that the functions entrusted to the municipalities at SI.No. 13 are Promotion of cultural, educational and aesthetic aspects, from which it can be inferred that promotion of educational aspects are part of the functions. There are four main aspects of education i.e congnitive, affective, psychomotor and social. Each one contributes to a student's overall development and learning. Cognitive development is all about acquiring knowledge and understanding concepts. Thus the impugned services of supply of teachers/lecturers is meant for imparting education to the students and hence it is part of promotion of educational aspects. Thus the impugned servi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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