TaxTMI 
TaxTMI 
2020 (7) TMI 350
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....eforth, for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST or AP GST Act would be mentioned as being under the GST Act. 3. Brief Facts of the case: 1. M/s. Consulting Engineers Group Limited., (hereinafter referred to as 'CEG' or the 'Applicant') is a Company registered under the Companies Act, 1956 and registered with Registrar of Companies as "Consulting Engineering Group Limited" vide CIN: U74140RJ1991PLC0006329 with its Registered Office at 7th Floor, B-11(G), Industrial Area, Malviya Nagar, Jaipur- 302017 and having its Branch Office in Andhra Pradesh vide GSTIN 37AAACC7519B1ZZ, having its Principle place of Business at Bye Pass Road, Door No. 76-13-99/5, Beside Bashyam School, Jojinagar, Vijayawada, Krishna, Andhra Pradesh, 520012. 2. Andhra Pradesh Panchayat Raj Engineering Department (hereinafter referred to as APPRED) set up by an act of Parliament and headed by the Commissioner of Panchayat Raj, the Department of Panchayat Raj and Rural Development is responsible for planning and execution of programs for rural development. The main functions of the Department are as follows: * Implement schemes for rural deve....
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.... time frame. b) Ensure consistency and compliance with the applicable AIIB's policy and project delivery strategies and on achieving the key result to he achieved during project implementation. c) Efficiently manage the project through assistance to PMU/PIUs of the client such that each and every activity of the project is completed in agreed timeline within budgeted cost frame and in full compliance with AIIB's guidelines and applicable client's acts, rule and regulation. d) PMC has to review / help the procurement process and assist the client in preparation of bidding documents, updating cost estimates, bid invitation and bid evaluation, as required. e) Provide training to PIU staff in project formulation, management, monitoring and evaluation, financial, road safety and environmental management aspects and community participatory approaches of the project. The consultants has to conduct training at HQ office i.e. Vijayawada at a minimum of 2 trainings/years (or as advises by the client time to time).The cost of training will be borne by the client. PROJECT MANAGEMENT AND MONITORING a) Planning, scheduling and monitoring of the pro....
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.... • Final quality checking • Post construction stage & final wrap up • The manuals shall emphasis on continuous quality standards & tests of material, field test to be conducted at their frequency strictly in accordance with IS specifications, APDSS, MOST MORTH /IRC/ codes. e) Interpretation of the technical specification for each item project. f) Supervise and monitor construction work of each contract package. g) Checking the alignment (LS/CS), level and specification of the construction to ensure conformity with the contract specification, presentation for approval to the competent authority any change in plans that may he deemed necessary indicating the effects due to the change in the contract, and preparation of variation orders accordingly. h) Scrutinize the contractors detailed work program and guide contractor in presentation of supervision schedule /work plan for each package. i) Scrutinize construction methods proposed by contractor including environmental, disaster management, safety, personal and public issues. j) Assess the adequacy and quality of contractor's supervisory ....
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....Panchayat Raj Engineering Department for APRRP Road Construction Project can be termed as 'Pure Services' as referred in SI. No. 3 - (Chapter 99) of Table mentioned in Notification No. 12/2017 - Central Tax (Rate) Dated 28/06/2017 and accordingly eligible for exemption from Central Goods and Service Tax and Sl. No. 3 - (Chapter 99) of Table mentioned in G.O.Ms.No.588 -(Andhra Pradesh) State Tax (Rate) Dated 12/12/2017 and accordingly eligible for exemption from Andhra Pradesh Goods and Service Tax. The applicant had filed an application in form GST ARA-01, 18.12.2019, by paying required amount of fee for seeking Advance Ruling on the following issues, as mentioned below. 4. Questions raised before the Authority: Whether the 'Project Management Consultancy' services provided to Andhra Pradesh Panchayat Raj Engineering Department for Andhra Pradesh Rural Road Project (APRRP) for Road Construction can be termed as 'Pure Services' as referred in Sl. No. 3 - (Chapter 99) of Table mentioned in Notification No. 12/2017 - Central Tax (Rate) Dated 28/06/2017 and accordingly eligible for exemption from Central Goods and Service Tax and Sl. No. 3 - (Chapter 99) of Table mentioned in ....
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....3W of the Constitution. Nil Nil From the abovementioned notification, it can be stated that the services are exempted from the CGST and SGST Tax if the following conditions are satisfied cumulatively: • They are rendering Pure services; • To the Central Government, State Government or Union territory or local authority or a Governmental authority; and • Such services should be 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. I. Interpretation of 'Pure Services' 1.1 The applicant submits that the services provided by them may be termed as 'Pure Services', as they fulfil the following conditions: i) It excludes works contract service ii) It excludes other composite supplies involving supply of any goods iii) It is supply of services without involving any supply of goods 1.2 The word 'Pure Services' referred in notification has nowhere been defined in the Act, Rules or notification. The Notification also does not specifically name the services which are eligible ....
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....Ps are properly prepared and implemented. 1.6 A copy of Invoice raised has been attached along with detailed bifurcation of cost which comprises of reimbursement of Remuneration of Professionals and Experts employed for undertaking various tasks assigned to the Applicant in the Contract Agreement in Annexure- 2. There is no component of supply of goods in any invoices. II. APPRED qualifies to be a Central Government, State Government, Governmental Authority or Local Authority 2.1 APPRED is one of the Department under the Panchayat Raj and Rural Development Department of Andhra Pradesh. The Panchayat Raj and Rural Development Department is headed by the Commissioner of Panchayat Raj, the Department of Panchayat Raj and Rural Development is responsible for planning and execution of programs for rural development. 2.2 The definition of "Governmental Authority" as per the definitions given under Notification no. 11/2017-Central tax (rate) and Notification no. 12/2017- Central tax (rate) dated 28th June 2017: "Governmental Authority" means an authority or a board or any other body, - (i) set up by an Act of Parliament or a State Legislature; or (ii....
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.... with respect to (a) the preparation of plans for economic development and social justice; (b) the implementation of schemes for economic development and social justice as may be entrusted to them including those in relation to the matters listed in the Eleventh Schedule." 3.2 The Eleventh Schedule (Article 243G) of the Constitution list out the matters for economic development and social justice. The relevant extract of the schedule has been stated hereunder: "......... ........... 13. Roads, culverts, bridges, ferries, waterways and other means of communication. ........." 3.3 The Department of Panchayat Raj and Rural Development is responsible for planning and execution of programs for rural development. The main functions of the Department are as follows: * Implement schemes for rural development * Improve the coverage and quality of infrastructure facilities in rural areas. * Make provision to provide clean drinking water * Execute minor irrigation and poverty alleviation programs 3.4 The Department is entrusted for implementing several schemes to improve living conditions of peo....
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....ter 99) of Notification No. 12/2017 - Central Tax (Rate) Dated 28/06/2017 and accordingly eligible for exemption. The services rendered by the applicant include a wide range of services like, Review & verification of the Project DPRs, Project Management (execution) and Monitoring, Construction Supervision and Contract Management, including QAC and ensuring that the ESMPs are properly prepared and implemented. Now we examine whether the services as provided by the applicant are exempted under Sl.No.3 of Notification No 12/2017 dated 28.07.2017 as amended. Sl.No.3 of the above notification describes 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 243G of the constitution or in relation to any function entrusted to a Municipality under article 243W of the constitution. There are multiple issues that are to be dealt under this entry as mentioned here under: (a) Whether the services rendered by the appl....
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....ant are in relation to any function entrusted to a Panchayat under article 243G or to a municipality under article 243W of the Constitution. Article 243G of the Constitution discusses the Powers, authority and responsibilities of Panchayats, stating that, "Subject to the provisions of this constitution the Legislature of a State may, by law, endow the Panchayats with such powers and authority and 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 Panchayats, at the appropriate level, subject to such conditions as may be specified therein, with respect to (a) the preparation of plans for economic development and social justice; (b) the implementation of schemes for economic development and social justice as may be entrusted to them including those in relation to the matters listed in the Eleventh Schedule". Eleventh schedule of Indian Constitution contains 29 functional items placed within the purview of the Panchayats: The relevant function under which the services of the applicant as extended to the APPRED fall under is, as follows....