TaxTMI 
TaxTMI 
2019 (12) TMI 1455
X X X X Extracts X X X X
X X X X Extracts X X X X
....tered under GSTIN No. 36AABCB5576G1ZM has filed an application in Form GST ARA-01 under Section 97(1) of Central Goods and Services Tax Act, 2017 and the Telangana Goods and Services Tax Act, 2017 (hereinafter referred to as "the CGST Act and TGST Act" respectively) read with Rule 104 of Central Goods and Services Tax Rules, 2017 & Telangana Goods and Services Tax Rules, 2017(hereinafter referred to as "the CGST Rules and TGST Rules" respectively) seeking Advance Ruling on the following issues: (i) Whether the supply of telephone service to Greater Hyderabad Municipal Corporation (GHMC) is exempted? and (ii) Telephone invoices are to be issued with/without GST? 2. At the outset, it is made clear that the provisions of both the CGST Act....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ve appointed Sri B. Raghu Kiran, IRS, Joint Commissioner (Central Tax) as member in place of Sri V. Srinivas, IRS, Additional Commissioner (Central Tax). Hence another notice was issued to the applicant to appear for Personnel Hearing on 04-12-2019. The Authorised representative Ms. D.V. Janaki, DGM & Mr. L. Hari Babu, JAO reiterated the facts mentioned above. 5. Discussion & findings: 5.1 We have gone through the facts of the case, documents on record and submissions made by the applicant. 5.2 The relevant portion of the Notification No. 12/2017-Central Tax (Rate), dated 28-6-2017 (Notification No. 12/2017-(Telangana) State Tax (Rate), dated 30-6-2017) is reproduced below: "................ In exercise of the powers conferred by s....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... (i) provided to the Central Government, State Government or Union territory or local authority or a Governmental authority or Government Entity; (ii) pure service (excluding works contract service or other composite supplies involving supply of any goods); and (iii) provided 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. 5.4 In terms of Sec. 2(69) of the CGST Act, the recipient of the service i.e. GHMC falls within the definition of 'local authority' and hence the services provided by the applicant are said to have been rendered to the local authority. 5.5 Further "pur....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... provided by the applicant are actually used by GHMC in relation to the functions covered by 243W. This makes it pertinent to refer to Article 243W of the Constitution which is reproduced hereunder:- "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, with respect to - (i) the preparation of plans for economic development and social justice; (ii) the performance of functions and the impl....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ions, 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 and (18) Regulation of slaughter houses and tanneries. 5.9 As stated earlier, in order to be eligible for exemption under entry No. 3 of the Not. No. 12/2017- CT (R), the service must be by way of any activity in relation to any of the aforesaid functions. It appears that the telephone services are basically used by the personnel of the GHMC in their offices and provision of the said services has no relation whatsoever to the above mentioned functions. The Hon'bl....