TaxTMI 
TaxTMI 
2019 (4) TMI 1400
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.... or services or both; g. whether any particular thing done by the applicant with respect to any goods or services or both amounts to or results in a supply of goods or services or both, within the meaning of that term. Further, the applicant being a registered person (GSTIN is 08AAALM 189 IKIDY, as per the declaration given by him in Form ARA-01) the issue raised by the applicant is neither pending for proceedings nor proceedings were passed by any authority. Based on the above observations, the applicant is admitted to pronounce advance ruling. 1. SUBMISSION AND INTERPRETATION OF THE APPLICANT: a. The applicant is Municipal Corporation of Pratapgarh district i.e. constituted as a local authority as mentioned in article 243W of Constitution of India. b. The applicant is receiving various services from various contractors for cleaning of road, garden, toilets and waste collection. As most of the services received are under article 243W of Constitution of India but these services are on rate basis. The applicant is not able to clarify whether the above mentioned services received on rate basis mentioned in article 243W are taxable or exempted. ....
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....ings. 3. Planning for economic and social development. 4. Roads and bridges. 5. Water supply for domestic, industrial and commercial purposes. 6. Public health, sanitation conservancy and solid waste management. 7. Fire services. 8. Urban forestry, protection of the environment and promotion of ecological aspects. 9. Safeguarding the interests of weaker sections of society, including the handicapped and mentally retarded. 10. Slum improvement and up gradation. 11. Urban poverty alleviation. 12. Provision of urban amenities and facilities such as parks, gardens, playgrounds. 13. Promotion of cultural, educational and aesthetic aspects. 14. Burials and burial grounds; cremations, cremation grounds and electric crematoriums. 15. Cattle ponds; prevention of cruelty to animals. 16. Vital statistics including registration of births and deaths. 17. Public amenities including street lighting, parking lots, bus-stops and public conveniences. 18. Regulation of slaughter houses and tanneries. On perusal of said Schedule it is evident that ser....
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....is a supply of both i.e. supply of goods and services and therefore may not exempted under serial no. 3 of Notification No. 12/2017 Central Tax (Rate) dated 28.06.2017 if supply of goods crosses threshold limit of 25%. g. It is quite difficult to ascertain the quantum of supply of goods and its value through the submissions made by the applicant as quantum of supply of goods or services in a supply depends on a particular activity to activity. Further, if in duration of agreement/ contract the applicant crosses 25% value of goods benchmarks then the nature of taxation may shift from Nil. h. Section 51 of CGST/RGST Act, 2017 has made provision in relation to Tax Deduction at Source (TDS) which is as below:- 51. (1) Notwithstanding anything to the contrary contained in this Act, the Government may mandate,- (a) a department or establishment of the Central Government or State Government; or (b) local authority; or (c) Governmental agencies; or (d) such persons or category of persons as may be notified by the Government on the recommendations of the Council, (hereafter in this section referred to as "the deductor")....
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....GST so provisions of TDS will also not be applicable on the applicant. If the activity undertaken by the applicant where there is Works Contract of Composite Supply composite supply of goods and services and quantum of supply of goods is more than 25% then rate of GST will be applicable as mentioned in respective Notification. As the activities attracts GST and are not Nil rated therefore, provisions of TDS will be applicable. 6. In view of the foregoing, we rule as follows:- RULING Applicant being a local authority is engaged in receipt of various kinds of services provided by different contractors on which applicability of GST and GST TDS will be:- a. Pure Services will attract Nil rate of duty and provisions of GST TDS will not be applicable. b. In Composite supply of goods and services where supply of goods is not more than 25% of the total value of supply, attract Nil rate of duty and provisions of GST TDS will not be applicable. c. In Composite supply of goods and services where supply of goods is more than 25% of the total value of supply, will attracts GST @ 12% (SGST 6%+CGST6%) if the activity fall under purview of Serial No. 3 of Notificat....