TaxTMI 
TaxTMI 
TaxTMI 
2021 (6) TMI 385
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....ate Government, Local Authority or any person specified by State Government, Local Authority against consideration received from State Government, Local Authority, in the form of grants is liable to GST? 3. Admissibility of the application : The applicant, filed the instant application, in relation to application of a exemption notification and this question is related to the issue covered under Section 97(2)(a) of the CGST Act 2017 and hence the application is admitted. 4. Applicant's interpretation of law : The applicant submits their interpretation of law as under: 4.1 The applicant provides the services of civil works contract and states that the supply of service by a Government controlled Association to State Government, Local Authority or any person specified by the State Government, Local Authority against consideration received from State Government, Local Authority in the form of grants is not liable for GST based on the Notification No. 32/2017-CGST (Rate) dated 13.10.2017. 4.2 The applicant states that Bellary Nirmiti Kendra is established under the national network programme of building centres scheme launched by the Government of India under HUDCO, and promoted an....
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....expertise, guidance and know how to all who are working for housing growth and to build industries for manufacturing of building materials in the public and private sector and in particular in the SSI sector. l. To conduct soil test in order to arrive major classification of soil in the district so as to advice type design according to the nature of soil for long lasting life of the buildings. m. To undertake demonstration housing projects both in Rural and Urban areas. n. Income accrued to the Kendra will be utilised for the upliftment of the Kendra. o. To promote and do all such things and to perform all such acts as may be necessary or appropriate for the achievement of any or all the above objects subject to the overall control of Government and Governing Council of the centre and in conformity with section 3 of the K.S.R.Act, 1960. 4.4 The applicant states that presently Bellary Nirmiti Kendra is providing services to only the State Government viz.- (a) towards Housing for economically weaker section people (b) towards education buildings like Government Schools, Colleges; (c) towards repair and construction of Hospitals under Health Department of State Governme....
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....ra - Member (d) President, RV-TIFAC, - Member (e) Professor, Indian Institute of Science, - Member (f) Assistant Professor, B.V.B. College of Engineering, - Member (g) The Project Manager, Nirmiti Kendra, Haveri (h) The Project Manager, Nirmiti Kendra, Chitradurga 5.5. Bellary Nirmiti Kendra is primarily an organisation to disseminate information on low cost building technologies and materials. The Nirmiti Kendras are established under the Chairmanship of Deputy Commissioner of the District and Vice-Chairmanship of Chief Executive Officer, Zilla Panchayat. Hence, the Nirmiti Kendra is set up by Karnataka Rajya Nirmana Kendra (KARNIK) which is inturn set up by the Government of Karnataka. 5.6 The broad objectives of the Kendra are:- (a) To serve as seminal agency to generate and propagate innovative ideas in housing. (b) A clearing house of information and data bank on housing which would bring the fruits of research from lab to land. (c) A production centre to pre-fabricated standard housing materials (d) A training house to impart skills to local work men in inevitable housing techniques and create a cadre of trained workers in all the blocks in the districts. ....
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.... Government of India. 5.10 The applicant states that the process of standard operating procedure prior to execution of work by the Bellary Nirmiti Kendra is as follows: Step 1: A request for submission of estimate from any Public Service Department of Government of Karnataka for execution of Public activities is received by the Bellary Nirmiti Kendra. Step 2 : The Project Engineers of the Nirmiti Kendra under the guidance of Project Director collate the details in the form of estimates for the submission to the specific Public Service Departments of Government of Karnataka. Step 3: Once the estimates are approved by that specific Public Service Department, Bellary Nirmiti Kendra receives grants from such specific Public Service Department for execution of approved projects. 5.11 The Bellary Nirmiti Kendra does not sub-contract to external agencies / individual for execution of the work order of any Public Service Department of Government of Karnataka. 5.12 The Bellary Nirmiti Kendra executes projects related to Government of Karnataka only. 6. Based on the above facts, the applicant submits that Bellary Nirmiti Kendra is a Government Entity. He also submits that the condi....
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....at of service c. The supply should be made by a Government Entity d. The recipient must be Central Government, State Government, Union territory, local authority or any person specified by Central Government, State Government, Union territory or local authority e. The consideration must be received in the form of grants from Central Government, State Government, Union territory or local authority. 10. The analysis of the work orders placed on the applicant are verified and found that the following types of works are covered:- a. The supply of service where the recipient is a Government Department or local authority where consideration is provided in the form of grants b. The supply of service where the recipient is a Government Department where the consideration is provided as grants from District Mineral Fund. c. The supply of service where the consideration is received in the form of CSR funds. 11. For the first issue whether the applicant is a "government entity", the following are noted:- 11.1 The term "government entity" is defined in clause (zfa) in paragraph 2 of Notification No. 12/2017- Central Tax (Rate) dated 29.06.2017 as amended by Notification No.32/201....