AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2021 (1) TMI 597
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....t 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 entrusted to a Municipality under Article 243W of the Constitution. 2. The applicant has submitted that the Governmental Authority as per Notification No.12/2017-Central Tax (Rate) dated 28.06.2017 (as amended) is as under: "(zf) "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) established by any Government, with 90 per cent. or more participation by way of equity or control, to carry out any function entrusted to a Municipality under article 243 W of the Constitution or to a Panchayat under article 243 G of the Constitution. (zfa) "Government Entity" means an authority or a board or any other body including a society, trust, corporation, (i) set up by an Act of Parliament or State Legislature; or (ii) established by any Government, with 90per cent. or more participation by way of equity or control, to carry out a function entrusted by the Central Government, State Government, Union Territory or a local authority." 3. The ....
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....sion work of Affordable Housing (EWS-II Type) Project at Munjka RUDA Area and have submitted a copy of the Letter of Acceptance (LOA) issued by RUDA to them for the said work. They have submitted their point of view with regard to the aforementioned service supplied by them as under: (1) Contract for the service awarded involves supply of Service only; without involving supply of goods meaning thereby the service that they are providing to RUDA for the above work is Pure Service. * Meaning & scope of Pure Service is duly explained in detail by CBEC vide Question no.25 of FAQ on Government Services under Sectoral Series released. Notification no. 12/2017-Central Tax (Rate) notified certain supply exempt from Goods & Service Tax. This notification came into effect from inception i.e. 1st July 2017. Serial no. 3 of the said notification exempts 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 2....
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....on 22 of the Gujarat Town Planning & Urban Development Act. (4) As regards functions, definition refers to function entrusted to a Municipality under article 243W of the Constitution or to a Panchayat under article 243G of the Constitution. Article 243W of the Constitution of India is reproduced herein below: "243W. 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, Disqualifications for membership. Powers, authority and responsibilities of Municipalities, etc. THE CONSTITUTION OF INDIA (Part IXA.-The Municipalities.-Arts. 243U-243W.) 143 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 powe....
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....sal of sewerage and provision of other services and amenities. (vii) To acquire, hold manage and dispose of property movable or immovable as it may deem necessary. (viii) To enter into contract, agreement or arrangement with any local Authority/Person or organization as the urban development authority may consider necessary for performing its functions. (ix) To carry out any development work in the urban Development Area as may be assigned to it by the State Government from time to time. (x) To exercise such other powers and performs such other function as are supplemental, incidental or consequential to any of the foregoing powers and functions or as may be directed by the State Government. (7) Above can be verified from Para 1.3 of Second Revised Draft Development Plan of RUDA 2031AD. Copy of the same is attached. Further, for Planning & Administration, RUDA is divided amongst two authorities; one is Rajkot Municipal Corporation (RMC) and other is Rajkot Urban Development Authority (RUDA). These authorities have their separate jurisdiction. They are responsible for their jurisdiction/territory only. In fact, RMC is responsible for the planning & development of Rajkot ci....
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....idering above brief & facts of the case. Though all the complete supporting documents were already submitted earlier, however relevant part of the same are attached for ready reference. 6. The applicant has made additional submission vide their letter dated 20.08.2020 (which was received by email on 27.08.2020) in which they have mentioned that in furtherance to their earlier submission, they wish to clarify that they have sought ruling under clause (b) of section 97(2) of the CGST Act; that to reiterate briefly what has been stated in their application & written submission is that they are engaged by Rajkot Urban Development Authority (herein after referred to as RUDA) for providing Project Management Consultancy in relation to some civil construction activity; that all the details with documentary evidence are already submitted vide their earlier submissions referred to above. They have stated that their contention is RUDA is Governmental Authority & Government Entity and that the service that they are providing to RUDA being Pure Service is exempt from tax by virtue of Notification no.12/2017; that Governmental Authority or Government Entity is not defined anywhere in the Act b....
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....vided by the applicant and the GST liability on the same for which we will be required to go through the Notification No.11/2017-Central Tax(Rate) dated 28.06.2017 which contains the Chapter, Section, Heading, Group or Service Code of classification of services along with their GST rates. On going through the said notification, we find that Professional and Technical service provided by the applicant are classifiable under Heading 9983 of Notification No.11/2017-Central Tax(Rate) dated 28.06.2017 (which appears at Entry No.21 of the said notification) on which GST liability is 18%(9% SGST + 9% CGST) and reads as under: Sr.No. Chapter, Section, Heading, Group or Service Code (Tariff) Description of Service Rate(percent) Condition (1) (2) (3) (4) (5) 21 Heading 9983 (Other professional, technical and business services) (i) Selling of space for advertisement in print media. 2.5 -- (ii) Other professional, technical and business services other than (i) above. 9 -- 10. Thereafter, we are required to refer to the relevant portion of Notification No.12/2017-Central Tax(Rate) dated 28.06.2017 (as amended by Notification No.02/2018-Central Tax(Rate) dated 25.01.2018) refe....
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....s meant by pure service? Since 'pure service' has not been defined under GST, the same can be construed in general terms as any supply which is either deemed as services under Schedule II of CGST Act or which are not covered under the definition of goods shall be categorized as pure services. However, as per the notification, works contract services or other composite supplies involving supply of any goods are not covered in entry no.3 of aforementioned notification. In other words, if a person provides only service to any person without involvement of supply of goods along with supply of services, then the same would be termed as supply of pure service. Although the applicant has submitted that they are providing Professional and Technical service and have been allotted work of providing Project Management Consultancy Service(Heading 998339) in Relation to PM Awas Yojana by Rajkot Urban Development Authority and the service is Pure service and that Serial No.3 of Notification No.12/2017-Central Tax(Rate) dated 28.06.2017, as amended from time to time exempts the Pure services (excluding works contract service or other composite supplies involving supply of any goods) provided to t....