TaxTMI 
TaxTMI 
2019 (6) TMI 488
X X X X Extracts X X X X
X X X X Extracts X X X X
....d under Section 99 of the West Bengal Goods and Services Act, 2017, within a period of thirty days from the date of communication of this Ruling, or within such further time as mentioned in the proviso to Section 100 (2) of the GST Act. Every such Appeal shall be filed in accordance with Section 100 (3) of the GST Act and the Rules prescribed thereunder, and the Regulations prescribed by the West Bengal Authority for Advance Ruling Regulations, 2018 1. Admissibility of the Application 1.1 The Irrigation and Waterways Directorate, Govt of West Bengal (hereinafter the recipient) has awarded the Applicant a contract for the resuscitation by re-excavation of river Palaspai from Banskhal to Mahisghata, along with raising and strengtheni....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... more than 25 per cent of the value of the said composite supply. 2.2 The Applicant submits that the recipient is the State Government. He submits a price schedule that describes the work and its value. He argues that the work involves pumping out the water, earthwork in excavation and re-excavation of the drainage channels, services related to the disposal of the excavated material, compacting earthwork in the embankment and is pure service or a composite supply where the supply of goods is negligible. He claims that the work is an activity in relation to a function entrusted to a panchayat under Article 243G. In his support, the Applicant submits a copy of a communication from the recipient, certifying that no GST is deducted while pay....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ove Circular leaves no doubt that the phrase 'in relation to any function', as applied to Sl No. 3 or 3A above, makes no substantial difference between Sl No. 25(a) of the ST Notification and Sl No. 3 or 3A of the Exemption Notification. Under the previous service tax regime, the exemption was limited to certain functions specified in Sl No. 25(a) of the ST Notification, whereas, under the GST the ambit has been broadened to include any such functions that are performed by a panchayat or a municipality under specific provisions of the Constitution. These functions are in the nature of public welfare service that the governments on their own, and sometimes through governmental authorities/entities, do provide to the citizens. When the activi....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 2% of the value of the contract. It is, therefore, a composite supply primarily of various services, principal supply being the service of resuscitation of the river, where the supply of goods constitutes well below the threshold mentioned in Sl No. 3A of the Exemption Notification. 4.5 Before deciding the applicability of Sl No. 3 or 3A of the Exemption Notification, the functions of a panchayat under the Constitution needs to be discussed. Article 243G of the Constitution discusses the powers, authority and responsibilities of Panchayats, stating that "Subject to the provisions of this Constitution the Legislature of a State may, by law, endow the Panchayats with such powers and authority and may be necessary to enable them to functio....