AAR Rules Urban Planning Services by M/s Core Project Engineers Exempt from GST

The Authority for Advance Ruling (AAR) determined that the services provided by the applicant, M/s Core Project Engineers & Consultants Private Limited, align with Clause 1 and 2 of the Twelfth Schedule of Article 243W, relating to Urban Planning and Town Planning functions. Additionally, the AAR confirmed that the applicant's services qualify as "pure services" exempt from GST under Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017. As a result, the services offered to various Municipal Corporations and Councils are exempt from GST as per the specified notification.

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Issues Involved:
1. Whether the services provided by the Applicant are covered under Clause 1 & 2 of Twelfth Schedule of Article 243W.
2. Whether the services provided by the applicant fall under Exemption Notification No. 12/2017 dated 28th June 2017 (Entry No. 3 of Exemption Notification) as amended from time to time as the services are in the nature of pure labour services.

Detailed Analysis:

Issue 1: Coverage under Clause 1 & 2 of Twelfth Schedule of Article 243W
The applicant, M/s Core Project Engineers & Consultants Private Limited, provides Mapping Services to various Municipal Corporations and Councils to identify unpermitted construction areas. These services include Urban Planning, Town Planning, and Land Use Planning. The applicant argues that their services align with Clause 1 (Urban Planning including Town Planning) and Clause 2 (Planning of Land Use and Construction of Buildings) of the Twelfth Schedule of Article 243W of the Constitution.

The Authority for Advance Ruling (AAR) examined the nature of the services provided and confirmed that these services are indeed in relation to Urban Planning and Town Planning. The services provided by the applicant help local authorities in planning and controlling land use, thereby falling under the functions entrusted to municipalities under Article 243W of the Constitution.

Issue 2: Applicability of Exemption Notification No. 12/2017
The applicant contends that their services should be exempt from GST under Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017, specifically under Entry No. 3, which exempts pure services provided to the government or local authority in relation to functions entrusted to a Panchayat under Article 243G or a Municipality under Article 243W.

The AAR reviewed the detailed submissions and found that the applicant's services do not involve the supply of goods, thus qualifying as "pure services." The services provided by the applicant, such as Mapping, Property Survey, Tax Assessment, and Property Document Management, are directly related to Urban Planning and Town Planning functions entrusted to municipalities under Article 243W. Consequently, these services are exempt from GST as per the specified notification.

Conclusion:
The AAR concluded that the services provided by the applicant are covered under Clause 1 and 2 of the Twelfth Schedule of Article 243W and are eligible for exemption under Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017. Therefore, the services provided by the applicant to various Municipal Corporations and Councils are exempt from GST.

Order:
1. The services provided by the Applicant are covered under Clause 1 & 2 of Twelfth Schedule of Article 243W.
2. The services provided by the applicant fall under the Exemption Notification No. 12/2017 dated 28th June 2017 (Entry No. 3 of Exemption Notification) as amended from time to time as the services are in the nature of pure labour services.

The AAR answered both questions in the affirmative, affirming the applicant's eligibility for GST exemption.

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