TaxTMI 
TaxTMI 
2019 (3) TMI 1703
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....he Challan bearing CIN No. 10BA18121500000768, dated 11-12-2018 for Rs. 5,000/- for SGST and a copy of the Challan Bearing CIN No. CNRB19031500000415, dated 7-3-2019 for Rs. 5,000/for CGST towards payment of application fee. After due verification the application has been admitted. 1.3 Questions on which advance ruling are required : (i) Whether the Consultancy services provided by applicant to the Recipient under the Contract (Annexure 1) for upgrading of 81 KM length of State Highways and major District Roads to the Government of Mizoram are activity in relation to function entrusted to Panchayat or Municipality under Article 243G or Article 243W respectively, of the Constitution of India? (ii) Whether the Consultancy services provided by applicant under the Contract (Annexure 1) to Government of Mizoram are Pure Services qualifying for exemption from levy of CGST and Mizoram GST, respectively, as notified in Serial Number 3 of Notification No. 12/2017-Central Tax (Rate), dated 28-6-2017, issued under Central Goods and Services Tax Act, 2017 ('CGST') and corresponding notifications issued under Mizoram Goods and Services Tax Act, 2017....
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....e to be satisfied for claiming exemption under the said notification. (i) No supply of goods. Supply shall be pure services, which shall not include works contract services or composite supplies involving supply of services. In other words, the contract should not include any supply of goods either by way of works contract or composite supply. (ii) Recipient of Service. The recipient should be Central Government, State Government or Union Territory or Local Authority or a Governmental Authority. (iii) Functions of Panchayat or Municipality Services should be 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 entrusted to a Municipality under Article 243W of the Constitution. 4.2 From the contract, it is apparent that the applicant is rendering Project Management. Project Planning and Construction Supervision which do not involve supply of goods either as a Works Contract as defined under Section 2(119) of GST Act, 2017 or Composite Supply as defined under Section 2(30) of CGST Act, 2017. Thus, the first requirement....
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....tisfied, the services provided by the applicant to the Recipient do not qualify to claim exemption under the Notification No. 12/2017 ibid. Hence, the services provided by the applicant is a taxable supply attracting GST liability @ 18%. 4.6 Further, as the Contract clearly quantifies the indirect taxes chargeable from the Recipient (Client), the applicant is within its right to charge and collect the GST from the Service Recipient. 5. The concerned officers of the Central GST and the State GST also expressed their views that in this case the benefit of the exemption Notification No. 12/2017-Central Tax (Rate), dated 28-6-2017 is not applicable. The Ld. Representative, Shri Rama Mohan Giri who appeared for the personal hearing on behalf of the applicant on 27-2-2018 reiterated the written submissions made vide application dated 28-12-2018. Findings 6. The Contract has been signed on 15-10-2014 for Consultancy Service for "Construction Supervision Consultancy (CSC) for Group I Roads of MSR II-RTPC" between Chief Engineer (Roads) Public Works Department, Government of Mizoram (the Client) And Sheladia Associates, Inc. USA (the Consultant) 6....
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.... value. Para 28.2 Any equipment or material brought by the Consultant or its Experts into the Client's country for the use either for the project or personal use shall remain the property of the Consultant or the Experts concerned, as applicable. 6.4 Special conditions of Contract at Page No. 30 at Para 41.2 states that - Any indirect local taxes chargeable in respect of this Contract for the Services provided by the consultant shall be paid or reimbursed by the Client to the Consultant. 7. The submissions made by the applicant vide their application for Advance Ruling as well as made during personal hearing have been examined. The opinions of the concerned officers of the State and Central GST Commissionerates have also been considered with reference to the terms of the Contract between both the parties and the GST Act, 2017 and MGST Act, 2017. Provisions of the notification in question have also been considered. It is a case where no supply of goods, against consideration or payment is involved. Hence, it is a case of Pure Service, although the subject Contract signed between both the parties mentions it as 'Works Contract Service'. The a....
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....n. (2) Land improvement, implementation of land reforms, land consolidation and soil conservation. (3) Minor irrigation, water management and watershed development. (4) Animal husbandry, dairying and poultry. (5) Fisheries. (6) Social forestry and farm forestry. (7) Minor forest produce. (8) Small scale industries, including food processing industries. (9) Khadi, village and cottage industries. (10) Rural housing. (11) Drinking water. (12) Fuel and fodder. (13) Roads, culverts, bridges, ferries, waterways and other means of communication. (14) Rural electrification, including distribution of electricity. (15) Non-conventional energy sources. (16) Poverty alleviation programme. (17) Education, including primary and secondary schools. (18) Technical training and vocational education. (19) Adult and non-formal education. (20) Libraries. (21) Cultural activities. (22) Markets and fa....