GST Ruling: Telephone Service to GHMC Not Exempted

The Authority held that the supply of telephone service to GHMC was not exempted from GST as it did not qualify as "pure services" under CGST Notification No. 12/2017 and lacked a direct relation to functions under Article 243W of the Constitution. Tax invoices must be issued for taxable services provided, including the tax amount in the service price, as per Section 33 of the CGST Act, 2017. The rulings were based on a detailed analysis of legal provisions, definitions, and interpretations, ensuring compliance with GST regulations.

---

---

Issues involved:
1. Whether the supply of telephone service to Greater Hyderabad Municipal Corporation (GHMC) is exemptedRs.
2. Whether telephone invoices are to be issued with/without GSTRs.

Analysis:
1. The applicant sought an Advance Ruling on whether the supply of telephone service to GHMC is exempted from GST. GHMC argued for exemption under CGST Notification No. 12/2017, claiming the services are used for functions under Article 243W of the Constitution. The Authority analyzed the relevant provisions and definitions. It was established that the services provided were not "pure services" as defined in the notification, as there was no evidence to show that the services did not involve any supply of goods. Additionally, the services were not directly related to the functions listed under Article 243W of the Constitution. The Authority referred to legal interpretations emphasizing the need for a direct or proximate relation to the subject matter for exemption eligibility. Consequently, the services provided were held not eligible for exemption under the notification.

2. Regarding the issuance of tax invoices for the taxable services provided, the Authority ruled that tax invoices must be issued indicating the amount of tax, as mandated under Section 33 of the CGST Act, 2017. The ruling clarified that the tax amount should be included in the price of the service. Therefore, the applicant was directed to issue tax invoices reflecting the applicable tax amount. The rulings were issued based on the detailed analysis of the legal provisions, definitions, and interpretations presented during the proceedings. The decision was made after thorough consideration of the facts, submissions, and applicable laws, ensuring compliance with the GST regulations.

---