TaxTMI 
TaxTMI 
2019 (10) TMI 483
X X X X Extracts X X X X
X X X X Extracts X X X X
....e 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- 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. Admissib....
X X X X Extracts X X X X
X X X X Extracts X X X X
....following Consumables also forms part of Scope of Service provided while rendering the overall services. a. All types of Consumables other than Blank Receipts 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 vid....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he receipt of services in his books of account, in a case where the provisions of clause (a) or clause (b) do not apply:..... • Time limit for issuing tax invoice as per Rule-47 of CGST Rules. 2017. The invoice referred to in rule 46, in the case of the taxable supply of services, 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 schem....
X X X X Extracts X X X X
X X X X Extracts X X X X
....cknowledge the same through MCGM receipts c. Daily Cash collection is deposited in MCGM bank account d. VFS Global' is remunerated on a per count/receipt issued to Citizens on monthly basis from MCGM e. VFS Global neither visit any site / location for services performed by MCGM nor does any survey or any report is prepared /layout is designed which would be in public interest to do so for services which are falling under Twelfth Schedule for Article 243 W of the Indian Constitution (Seventy-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 Serv....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Pure Services without any supply of material. b) Are in relation to any functions which are entrusted to the Municipality as per Article 243 W of the Constitution of India. 03. CONTENTION - AS PER THE CONCERNED OFFICER: With reference to above cited subject, I am submitting herewith the written contention regarding advance ruling in case of M/s. VFS Global Services Private ltd holding. 1) It is observed that M/s. VFS Global Services Private ltd holding GSTN NO. 27AACCC7513P2ZA has filed application under section 97 of the Central Goods and Services Tax Act, 2017 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....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... b. Computer, Printer & Cartridges c. House Keeping Materials d. Computer's Hardware e. Maintenance of Computer, Fan, Tube etc. f, CCTV Considering the above facts and discussion made by them, applicant is seeking the answer from the Advance Ruling authority 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, 2018. 3) It is find that applicant has raised the issue is very specific and limited. As per the agreement and the 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 a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....lanning including town planning. 2. Planning of land- use and construction of buildings. 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 upgradation. 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 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....
X X X X Extracts X X X X
X X X X Extracts X X X X
....equested for admission of their application. He further requested for conducting the final hearing simultaneously, in case of admission of their application. The application was admitted and taken up for final hearing as per their request. Jurisdictional Officer Sh. G. N. Wavare, Dy. Commr. of S.T.(E-609) LTU-3, Mumbai also appeared. 05. OBSERVATIONS AND FINDINGS: We have gone through the facts of the case, documents on record and submissions made by both, the applicant as well as the jurisdictional office. The applicant has submitted that MCGM, Mumbai has awarded contract to them for Operating Citizen Facilitation Centres (CFCs) at various locations of MCGM ward premises in Mumbai for which the consideration is payable on per transaction / receipt basis. There are many services provided by MCGM to Citizens against which it collects taxes like water tax, property tax etc. These 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 spec....
X X X X Extracts X X X X
X X X X Extracts X X X X
....pply of service. The contract very clearly states that the agreement between Mr. Anil Katoch of M/s. VFS Global Services Private Limited and Shri Sitaram Kunte, Municipal Commissioner, is for the work of Operating Citizen Facilitation Centres Collection Centres at various Locations of MCGM for 5 years on per transactions basis at Rs. 29.45 (Rupees twenty nine and paise forty five only) per transaction for pilot period of two months and thereafter for five years. The contract nowhere specifies separately for supply of goods, namely, computers, other consumables, etc. Therefore we find that the computers, other consumables, etc are being used by the applicant on their own account and that too for the purpose of providing services for the work of Operating Citizen Facilitation Centres / Collection Centres at various Locations of MCGM. Hence we find that their supply is of services only and are in the nature of pure services. However we agree to their submission that their role starts only after MCGM has provided services to citizens for which periodical bills/invoices are issued by MCGM. The role of the applicant starts only after the supply of goods/services are rendered by MCGM....