TaxTMI 
TaxTMI 
2019 (7) TMI 1107
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....c service. At the outset, we would like to make it clear that the provisions of both the CGST Act and the MGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to any dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the MGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, the expression 'GST Act' would mean CGST Act and MGST Act. 2. FACTS AND CONTENTION - AS PER THE APPLICANT The submissions, as reproduced verbatim, could be seen thus- "Brief Facts of Case The Applicant, M/s. Navi Mumbai Municipal Corporation, a Municipal Corporation is formed & governed by Bombay Provincial Municipal Corporation Act, 1949. There is no special statute for formation of any Municipal Corporation. The Corporation is headed by an IAS cadre person deputed by Govt. of Maharashtra. It caters to the civic services to the residents of city which are specified by Clause 243 W of Constitution of India, such as activity in relation to any function ordinarily entrusted to a municipality in relation to water supply, public health, sanitation conservancy, solid waste mana....
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.... should be considered as Supply of Goods 3. HSN 4911 rate should be 12% 4. Rate of Service should be 18% if Administrative Service or Nil 18% if specific service 5. Tendering is specific service 03. CONTENTION - AS PER THE CONCERNED OFFICER The submission, as reproduced verbatim, could be seen thus- "Opinion of this office:- 1) Online tendering - The Navi Mumbai Muncipal Corporation procured online tenders on website of municipal corporation. All the process is done online. This online activity will covered under supply of services. GST applicable 18%. 2) Offline tendering - The Navi Mumbai Muncipal Corporation sold tender forms thereafter all the process related to the tendering (applicable /payment of fees) along with copies submission of technical and financial bid by manually. In this case sales of manual tender form is supply of goods. And tender fees while submission of tender is a supply of services. Applicable GST 18%. 3. Tariff head of online tendering - Residual rate of tax 18% 4. Tariff head of Offline tendering - Residual rate of tax 12% for sales of tender forms and 18% fir tender fees. 5. Tender fees is covered under specific service (financia....
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....ire process is online. 5.4 As per Section 2(12) of the CGST Act, 2017, "services'; means anything other than goods, money and securities but includes activities relating to the use of money or its conversion by cash or by any other mode, from one form, currency or denomination, to another form, currency or denomination for which a separate consideration is charged. 5.5 From the above it is clear that Online Tendering does not satisfy the definition of 'goods'. The definition of 'services' as mentioned in the Business Dictionary: "Intangible products such as accounting, banking, cleaning, consultancy, education, insurance, expertise, medical treatment, or transportation. Sometimes services are difficult to identify because they are closely associated with a good; such as the combination of a diagnosis with the administration of a medicine. No transfer of possession or ownership takes place when services are sold, and they (1) cannot be stored or transported, (2) are instantly perishable, and (3) come into existence at the time they are bought and consumed. 5.6 Further we find that the IGST Act has defined Online Information and Data Access or Retrieval Services to include differe....
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....and in the case of the latter, the tender forms are sold as printed matter. NMMC is not involved in the business of buying or selling tender forms and the sale of tender forms does not appear to be incidental or ancillary to their business. In offline tendering too, there are intangible products such as application, payment of fees, submission of technical & financial bid, etc. These services are difficult to be identified individually. In both cases NMMC by floating the tender not only sells the form but collects them from the applicant and processes them and finally after the entire process of documentation, verification of the applicant's position to perform the contract, proceeds to give the tender to a particular person to the exclusion of others. In the process they also collect processing fees and other deposits from the various persons who are willing to fulfill their requirement for procurement of goods or services. As per Section 2(12) of the CGST Act, 2017, "services" means anything other than goods, money and securities but includes activities relating to the use of money or its conversion by cash or by any other mode, from one form, currency or denomination, to anothe....