Implementation Support Agency services under Jal Jeevan Mission qualify for NIL GST rating under Notification 12/2017

The MP AAR ruled that Implementation Support Agency services provided under the Jal Jeevan Mission for PHE Department in Kargil District, Union Territory of Ladakh, qualify for NIL GST rating. The authority determined that the services meet all three conditions under S.No.3, Chapter 99 of Notification No. 12/2017-Central Tax(Rate): they constitute pure services without goods supply, are provided to a government entity, and relate to functions entrusted to Panchayats under Article 243G or Municipalities under Article 243W of the Constitution.

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Issues:
- Whether pure services provided by the applicant under JAL JEEVAN MISSION for PHE Department in Kargil District are covered under Notification No. 12/2017-Central Tax(Rate) dated 28.06.2017 and are thus NIL rated without applicability of GST.

Analysis:
1. Background and Submission by Applicant: The applicant, registered in Bhopal, provided consultancy services for Implementation Support Agency (ISA) under JAL JEEVAN MISSION in Ladakh without supplying goods. The applicant sought an Advance Ruling on the applicability of GST on these services.

2. Department's View: The jurisdictional officer viewed the services as taxable under SI.No. 3 of Notification No. 9/2017 Integrated Tax (Rate) dated 28/06/2017.

3. Discussions and Findings: The Authority considered the applicant's submissions and the Department's view. The applicant claimed that their services fall under S.No. 3 of Notification 12/2017-Central Tax Rate 28.06.17.

4. Legal Provisions: Entry 3 of Notification No.12/2017-Central Tax (Rate) exempts pure services provided to Central/State/Union Territory/local authorities by way of activities related to functions entrusted to Panchayats or Municipalities under the Constitution.

5. Interpretation of Legal Provisions: The Authority analyzed the functions entrusted to Panchayats and Municipalities under the Constitution, specifically focusing on the Eleventh and Twelfth Schedules detailing various functions.

6. Decision and Ruling: The Authority ruled that services provided by the applicant from Bhopal to Ladakh fall under S.No. 3 of the notification, making them NIL rated for GST purposes. The ruling is valid unless declared void under relevant sections of the GST Act.

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