TaxTMI 
TaxTMI 
2019 (7) TMI 1285
X X X X Extracts X X X X
X X X X Extracts X X X X
....s services rendered to a local authority. 2. 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, henceforth for the purposes of this Advance Ruling, a reference to "GST Act" would means CGST / MGST Act. 3A. FACTS AND CONTENTION - AS PER THE APPLICANT 1. The submissions, as reproduced verbatim, could be seen thus- 1. That M/s. Vidarbha Infotech Pvt Ltd a company set up under the Companies Act, 1956 was carrying on the business (hereinafter referred to as the contractor) comprising of dealership in computer hardware, software and peripherals and in the service sector segment covering the construction of IT Park, towing van activity. 2. That the contractor was awarded a contract from Nagpur Environmental Services Ltd. (NESL). Nagpur (a 100% subsidiary of the Nagpur. Municipal Corporation, Nagpur for providing services for the management of Non-Network Tanker with the help of GPRS system at Nag....
X X X X Extracts X X X X
X X X X Extracts X X X X
....SHED IN THE GAZZETE OF INDIA EXTRAORDINARY. PART II SECTION 3 SUB-SECTION (11 Government of India Ministry of Finance (Department of Revenue) Notification No. 12,2017- Central Tax (Rate) :New Delhi. the 28th June. 2017 G.S.R...... (B).- In exercise of the powers conferred by sub-section (1) of section 11 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on being satisfied that it is necessary in the public interest so to do; on the recommendations of the Council, hereby exempts the intra-State supply of services of description as specified in column (3) of the Table below from so much of the central tax leviable thereon under sub-section (1) of section 9 of the said Act, as is in excess of the said tax calculated at the rate as specified in the corresponding entry in column (4) of the said Table, unless specified otherwise, subject to the relevant conditions as specified in the corresponding entry in column (5) of the said Table, namely: Table Sl. No. Chapter; Section, Heading, Group or Service Code (Tariff) Description of Services Rate (per cent) Condition (1) (2) (3) (4) (5) 1. Chap....
X X X X Extracts X X X X
X X X X Extracts X X X X
....of weaker sections of society, including the handicapped and mentally retarded (j) Slum improvement and upgradation (k) Urban poverty alleviation (m) Provision of urban amenities and facilities such as parks, gardens, playgrounds (n) Promotion of cultural, educational and aesthetic aspects (o) Burial grounds, cremations, cremation grounds and electric crematoriums (p) Cattle pounds, prevention of cruelty of animals (q) Vital statistics including registration of births and deaths (r) Public amenities including street lighting, parking lots, bus stops, public conveniences (s) Regularization of slaughter houses and tanneries. That this provides the powers, authority and responsibilities to the Municipality. 9. That subject to the provisions of the Constitution, the legislature of state may by law, endow (a) The municipalities with such powers and authority as may enable them to function as institutions of self-Government and such law may contain provisions for the devolution of powers and responsibilities upon the municipalities, subject to such conditions as may be specified therein ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....f the entry no. 63 of the exemption notification for the services 12 of2017 dated 27/6/2017, 3b. Statement containing the applicant's interpretation of law and/or facts, as the case may be, in respect of the aforesaid question(s) A. APPLICANT'S ELIGIBILITY TO FILE PRESENT ADVANCE RULING APPLICATION. a) That the sub-Section (c) of Section 95 of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as CGST Act"), defines the term 'applicant' as under: "Applicant" Means any person registered or desirous of obtaining registration under tis Act. Emphasis Supplied. b) A perusal of the above clarifies that scope of the term 'applicant', as defined under sub-Section (c) of Section 95 of the CGST Act shall include both, the person registered under the CGST Act and-also the person who is not registered as on date of applying for the advance ruling, but is desirous of seeking registration under the CGST Act, in the state where advance ruling is sought: c) Further, Section 22 of the CGST Act, specifies the person liable for registration and reads as under: "22, (1) Every supplier shall be liable to be registered under this Act in the State or Union te....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ruling u/s 97(2) of MGST Act, 2017 on following question. "Whether the contract from Nagpur Environmental Services Ltd. (NESL) Nagpur (a 100% subsidiary of the Nagpur Municipal Corporation, Nagpur) for providing services for the management of Non-Network tanker with the help of GPRS system at Nagpur, would be exempt from GST since it falls under the various exempt services in the article 243 W of the constitution of India as well as services rendered to a local authority." It is admitted fact that, applicant is supplying services to Nagpur Environmental Services Ltd. Nagpur and as per section 97(2) (b) requested for advance ruling on applicability of notification issued vide no. 12/2014 Central Tax (Rate) dated 28.06.2017 For ready reference entry 3 of this notification is reproduced as under; Pure services (excluding works contract service or other composite supplies involving supply of any goods) provided to the Central Government, State Government or Union territory or local authority or a Governmental authority by way of any activity in relation to any function entrusted to a Panchayat under article 243 G of the constitution. For the purpose of this notific....
X X X X Extracts X X X X
X X X X Extracts X X X X
....other form) is involved in the execution of such contract ; Section 2(30) - "Composite supply" means a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply. Illustration.- Where goods are packed and transported with insurance, the supply of goods, packing materials, transport and insurance is a composite supply and supply of goods is a principal supply ; From the plain reading of the applicant's application it is seen that there is involvement of GPRS tracking instrument which are fitted to various tankers to track their mobility and substantial value of such instrument is involve in these transaction therefor it is composite supply involving goods. It is not pure services in true sense. The services provided by the applicant is not directly related to function entrusted to the local authority or governmental authority. Water supply for domestic, industrial and commercial purposes. Hence notification is not applicable to the applicant. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ry at the first instance to decide nature of services provided by the applicant. It is the contention of the applicant that providing services for the management of Non-Network Tanker with the help of GPRS system at Nagpur is a pure service provided to a local authority. In support applicant has submitted that they have the necessary infrastructure for carrying out the said services within the city of Nagpur. To fulfil the services, applicant is raising bill on the NESL on the basis of per Tanker Trip in each bill. At the time of hearing, applicant has submitted work order issued by NESL through Executive Director dated 31.07.2018 stating inter-alia that accepted rate for management of Non-Network Tanker with the help of GPRS system is Rs. 10.30 per Tanker Trip and the contract to provide said services is for two years. On the basis of this work order applicant contends that they are providing GPRS tracking system services report, generated from the tracking instrument mounted on the water tanker and that there is no transfer of any goods to the recipient of service i.e. NECL. In short, applicant submits that the GPRS system is installed for tracking water carrying Tanker and to se....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nd to make available the water supply to all citizens as per 24 x 7, Nagpur Municipal Corporation have taken the steps and under Jawaharlal Nehru National Urban renewal mission (JNNURM) this central Government awarded programme, has been approved. For the development of Nagpur city water supply schemes, administration for making stocks, Nagpur Municipal Corporation has introduced. Nagpur water Supply company " owned by Municipal Corporation Nagpur Municipal Corporation as per the provisions of Nagpur city Municipal Corporation Act, 1948 section 58 B thereof as per Resolution No. 371 dated 10.2.2009, passed in General Body meeting of Municipal Corporation, has proposed and entire responsibility regarding water supply of Municipal Corporation and rights similarly, movable and immoveable properties related to water supply of Municipal Corporation, it has been decided to handover these to this company. After overall consideration, the Government is taking decision as under: Government's Resolution As per Nagpur city Municipal Corporation Act, 1948, Section 58B thereof, the corporation can implement its duties allotted by the Government, upon these terms/conditions through any bod....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ice (as a Nominee of Nagpur Municipal Commissioner. Sd/- 1 Equity Share (One Equity Share Only) 5. Prakash Urade S/o Dashrath Urade R/o T-8, Abhinav Smruti Near R.S. Convent Laxmi Nagar (west) Nagpur - 440022. Occ. Service (As a Nominee of Nagpur Municipal Commissioner.) Sd/- 1 Equity Share (One Equity Share Only) 49998 Equity Share 6. Sanjay Gaikwad S/o: Shankar Gaikwad R/o: Plot No. 12 Narkesary Layout, Wardha Road, Somalwada,Nagpur - 440015 Occ: Service (As a Nominee of Nagpur Municipal Commissioner). Sd/- 1 Equity Share (One Equity Share Only) 7. Shashikant Hastak S/o: Shankar Hastak R/o : 55, Ushakkal Ramkrishna Nagar, Khamla, Nagpur 440025. Occ. Service (As a Nominee of Nagpur Municipal Commissioner Sd/- 1 Equity Share (One Equity Share Only) 50000 Equity Share Thus, in the present case we find that NESL is established as per Nagpur Municipal Corporation Act, 1948 Section 58(B) and thereby permitting corporation to implement their duty allotted by the Government through this body i.e. NESL, Thus, from the perusal of Government Resolution and various definition i.e. Government autho....