BCD exemption for specified display assembly inputs extended for automotive, medical and industrial applications, with defined exclusions and sunset d...
The AAR held that the applicant's supply of personnel to WTL constitutes a pure service and not a composite supply or works contract. NKDA, constituted under the New Town Kolkata Development Authority Act, 2007, qualifies as a local authority; however, the service recipient is WTL, not NKDA, as payment flows from NKDA to WTL and then to the applicant on a back-to-back basis. Consequently, the applicant does not directly supply services to the local authority. Since all conditions of Entry No. 3 of Notification No. 12/2017-Central Tax (Rate) are not met, the exemption under the said notification is inapplicable. Therefore, the applicant is not entitled to the nil-rated GST exemption and must charge GST in its invoice to WTL for the manpower supply services rendered.
The AAR held that the applicant's supply of personnel to WTL constitutes a pure service and not a composite supply or works contract. NKDA, constituted under the New Town Kolkata Development Authority Act, 2007, qualifies as a local authority; however, the service recipient is WTL, not NKDA, as payment flows from NKDA to WTL and then to the applicant on a back-to-back basis. Consequently, the applicant does not directly supply services to the local authority. Since all conditions of Entry No. 3 of Notification No. 12/2017-Central Tax (Rate) are not met, the exemption under the said notification is inapplicable. Therefore, the applicant is not entitled to the nil-rated GST exemption and must charge GST in its invoice to WTL for the manpower supply services rendered.
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