TaxTMI 
TaxTMI 
TaxTMI 
2019 (10) TMI 483
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....ct 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- A. Statement of relevant facts having a bearing on the question (s) raised Company Profile of VFS GLOBAL SERVICES PVT. LTD. (VFS Global): VFS Global is engaged in the business of providing administrative and non-judgmental services to various diplomatic missions / consular sections related to the entire lifecycle of a visa application process, Identity Management and other citizen services for its client governments, enabling them to focus entirely on the critical task of assessment. VFS Global, a pioneer of the industry, offers innovative solutions such as 'Doorstep' Citizen Services, Citizen Facilitation Centres and Identity management services. Admissibility of the Advance Ruling Application: * The supply as exp....
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....pts b. Computer, Printer & Cartridges c. House Keeping Materials d. Computer's Hardware e. Maintenance of Computer, Fan, Tube etc. f. CCTV 5. Under the instruction from MCGM vide email dated 19th September, 2017, which state that transactions / receipt issued towards collection of Water and Property Tax from Citizens is exempt under Twelfth Schedule for Article 243 W of the Indian Constitution (Seventy-Fourth Amendment) Act, 1992, hence, VFS Global is charging GST on monthly basis to MCGM for all transactions / receipt issued to Citizens except for transactions receipt issued towards Collection of Water and Property Tax from Citizens. Refer the Agreement with MCGM for better understanding of scope of work broadly. Details of Questions on which Advance Ruling is sought: 6. Whether the work for "Operating Citizen Facilitation Centre (CFC) at various Locations of MCGM on per transaction/ receipt basis" involving the aforesaid Scope of Work would be exempt from GST vide Sr. No.3 & 3A of amended Notification No. 12/2017 - Central (Rate) as on 31st Dec, 2018. Statement containing the Applicant's interpretation of law and/or facts Relevant Provisions of GST Law for which ....
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....ervices, shall be issued within a period of thirty days from the date of the supply of service:...." Relevant Constitutional Provisions for which the Advance Ruling is sought: The article 243W of the Constitution of India reads as under: 243W - Powers, authority and responsibility of Municipalities, etc. Subject to the provisions of this Constitution, the Legislature of a State may, by law, endow (a) the Municipalities with such powers and authority as may be necessary to enable them to function as institutions of self-government and such law may contain provisions for the devolution of powers and responsibilities upon Municipalities, subject to such conditions as may be specified therein, with respect to (i) the preparation of plans for economic development and social-justice; (ii) the performance of functions and the implementation of schemes as may be entrusted to them including those in relation to the matters listed in the Twelfth Schedule; (b) the Committees with such powers and authority as may be necessary to enable them to out the responsibilities conferred upon them including those in relation to the matters listed in the Twelfth Schedule..." * The Twelfth....
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....enty-Fourth Amendment) Act, 1992 As per Rule-47 of CGST Rules, Invoice shall be issued within a period of 30 days from the date of Supply of Service. And as per Sec. 13 of CGST Act, 2017, Time of Supply of services will be once the invoice has been raised on the services recipient (Citizens). The above fact states that the services are performed only by MCGM to its Citizens and VFS Global has no role fulfilling the services to Citizens. Thus the Service (collection) provided by VFS Global to MCGM shall not fall in relation to any function entrusted to Municipality under Twelfth Schedule for Article 243 W of the Constitution. 2. In Pre GST Regime, The aforesaid Service provided by VFS Global to MCGM was not covered under: * Service Tax Exemption Notification No-25/2012 of the Finance Act, 2012 * Negative list of Services under Section 660 of the Finance Act, 2012. * Reverse Charge Notification No-30-2012. Hence, VFS Global was charging Service Tax @ 12.36% as per Section 66B of Finance Act, 2012 on aforesaid Service to Government under pre GST Period. 3. Without Prejudice to above, the exemption under serial number 3, in column (3) of notification No. 12/2017- Central Tax....
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....and the Maharashtra Goods and Services Tax Act, 2017 seeking an advance ruling in respect of the following question. The question is as below: Whether the work for "Operating Citizen Facilitation Centre (CFC) at various Locations of MCGM on per transaction/ receipt basis" involving the aforesaid Scope of Work would be exempt from GST vide Sr. No. 3 & 3A of amended Notification No. 12/2017 - Central (Rate) as on 31st Dec, 2017. 2) It is find from the application that M/s. VFS Global Services Private ltd is engaged in the business of providing administrative and non-judgmental services to various diplomatic missions / consular sections related to the entire lifecycle of a visa application process, Identity Management and other citizen services for its client governments, enabling them to focus entirely on the critical task of assessment. VFS Global, a pioneer of the industry, offers innovative solutions such as 'Doorstep' Citizen Services, Citizen Facilitation Centres and Identity management services. MCGM, Mumbai has awarded contract to VFS Global Services Private Limited for Operating Citizen Facilitation Centres (CFCs) at various locations of MCGM ward premises in Mumbai. Unde....
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....he scope of work, it is observed that the applicant is running the "Operating Citizen Facilitation Centre (CFC) at various Locations of MCGM and services are provided to the customers of MCGM on per transaction/ receipt basis" as the agreed terms and condition mentioned in the scope work awarded in the contract . Such activity carried out by the applicant is whether covered under the scope of Sr. No.3 & 3A of amended Notification No. 12/2017 - Central (Rate) as on 31st Dec, 2018 and is to be exempted from GST. The contention of applicant is that these activity is to be covered or not in above is required to be examine. Therefore for the sake clarity, the relevant said Notification No. 12/2017- Central (Rate) as on 31st Dec, 2018, serial number 3, in column (3), is reproduced as below : "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 [(or a Government Entity] by way of any activity in relation to any function entrusted to a Panchayat under article 243G of the Constitution or in relation to any function en....
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....ls and burial grounds; cremations, cremation grounds and electric crematoriums. 15. Cattle pounds; 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. 5) As per perusal of the above function mentioned in the article 243 W & on the basis of inputs, and written contention of the applicant, MCGM issues periodical bills to the Citizens for the services provided to citizens and citizens walk in to CFCs for payment of the bills issued by MCGM for the services availed by them. It can be seen that VFS Global's role is start only once the invoices issued by MCGM to Citizens (i.e. Services performed by MCGM is completed and amount to be received from the Citizens). Considering the activity of the applicant mentioned in the application is different than the functions mentioned in 243 W. It is fact that services provided by the MCGM is a services which are covered under 243 W. So that their services are covered under the services of pure services. And the said entry is applicable to the MCGM O....
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....se services are provided by MCGM directly to the citizens and the amounts/tax payable by the citizens against such services are collected by the applicant on behalf of MCGM, The applicant have themselves stated that while MCGM is providing services listed under Article 243W of the Constitution, no specific services are provided by the applicant in relation to services listed under Article 243 W on Indian Constitution Act. The applicant has also submitted that they accept Cash from Citizens in the premises of Collection Centers provided by MCGM, acknowledge the same through MCGM receipts, daily Cash collection is deposited in MCGM bank account, and the applicant neither visits any site / location for services performed by MCGM nor do they conduct any survey or prepare any report in respect of services provided by MCGM. For performing such services the applicant has to use its own manpower, all types of Consumables, such as, Computers, Printers, House Keeping Materials, etc. other than Blank Receipts The applicant has further submitted that, under instructions from MCGM, transactions receipt issued towards collection of Water and Property Tax from Citizens is exempt under Twelfth S....