Tax Deduction at Source: threshold applies to the aggregate value of each contract, aggregating continuous supplies under it.

The ruling determines two operative points: first, a statutory entity established by Parliament qualifies as a 'specified person' where substantial regulatory control and governmental accountability (appointment, funding, audit, reporting and rulemaking powers) exist, so the applicant falls within Notification No. 50/2018 and must comply with Section 51 TDS obligations; second, the TDS threshold is assessed on the aggregate value of supplies under each contract (excluding GST), with continuous or recurrent supplies under the same contract aggregated, while separate contracts are treated independently, so invoice fragmentation does not prevent aggregation for threshold computation.

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Issues: (i) Whether the applicant, established under the Indian Institutes of Management Act, 2017 (an Act of Parliament), is a 'specified person' under Section 51 of the Central Goods and Services Tax Act, 2017 read with Notification No. 50/2018-Central Tax dated 13.09.2018; (ii) Whether the threshold of Rs. 2,50,000 for deduction of tax at source is to be determined on the value of supply under each contract (excluding GST), regardless of the number of invoices issued.

Issue (i): Whether the applicant is a 'specified person' under Section 51 of the Central Goods and Services Tax Act, 2017 read with Notification No. 50/2018-Central Tax dated 13.09.2018.

Analysis: The notification distinguishes two independent categories by use of the disjunctive "or" and punctuation, following the Supreme Court's approach to statutory interpretation. The Board's clarificatory circular cannot override the Supreme Court's interpretation. Independently, the provisions of the Indian Institutes of Management Act, 2017 (as amended) confer multiple powers and obligations to and accountability of the Central Government (including appointment/approval/removal powers, audit and reporting requirements, funding, rule making and submission of reports to Parliament) which constitute substantial regulatory control. The term "control" in the notification is satisfied by substantial regulatory control and accountability; it does not require day to day operational control or an equity holding structure.

Conclusion: The applicant is a 'specified person' under Section 51 of the Central Goods and Services Tax Act, 2017 read with Notification No. 50/2018-Central Tax dated 13.09.2018 (in favour of Revenue).

Issue (ii): Whether the threshold of Rs. 2,50,000 for deduction of tax at source is to be determined on the value of supply under each contract (excluding GST), regardless of the number of invoices issued.

Analysis: A contract is defined by the Contract Act and the GST Act recognises "continuous supply" where supplies under a contract may be invoiced periodically. Where supplies arise under a single contract (including continuous or recurrent supplies), the aggregate value of all supplies under that contract determines the threshold. Separate contracts with the same supplier are to be treated independently for threshold computation. Invoices reflecting part supplies under a single contract do not fragment the contract for threshold computation; the contract's total (excluding GST) is decisive.

Conclusion: For a single contract, the threshold of Rs. 2.5 lakhs applies to the total value of supply under that contract (excluding GST); separate contracts are assessed separately; continuous or recurrent supplies forming part of the original contract are aggregated for threshold determination (in favour of Revenue on the proper application of threshold rules).

Final Conclusion: The Authority rules that the applicant is liable to deduct tax at source under Section 51 read with Notification No. 50/2018-Central Tax dated 13.09.2018, and the Rs. 2.5 lakh threshold is to be applied contract wise (aggregating supplies under a single contract and treating separate contracts independently).

Ratio Decidendi: A disjunctive reading of the notification's sub clauses confines the notification's long line qualification to entities "established by any Government" while the status of a statutory body set up by an Act is to be determined on whether substantial regulatory control and accountability by the Government exists; where such substantial regulatory control is present, the entity qualifies as a notified "specified person" under Section 51, and the TDS threshold is determined by the total value of supply under each contract (excluding GST), aggregating continuous supplies under the same contract.

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