TaxTMI 
TaxTMI 
2021 (6) TMI 385
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.... by a Government controlled Association to State 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....
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....layout, etc, required for or conductive to housing development and growth in the District. k. To provide technical advice, 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....
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....systems and service. 5.4 The applicant states that the Governing Body of KARNIK is as follows:- (a) Managing Director, RGRHCL - Chief Executive Officer is an IAS Officer (b) Regional Chief, HUDCO, - Member (c) Secretary, Vivekananda Girijana Kalyana Kendra - 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 hous....
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....e) Cemetry (f) Government Schools (g) Health Centre (h) Grama Vikas Soudha (i) Anganavadi (j) Temples managed by Muzrai Department (k) Installation of Solar Street Lights on behalf of National Mining Development Corporation of India, which was incorporated in 1958 as a Government of India fully owned public enterprise. NMDC is under the administrative control of the Ministry of Steel, 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....
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....overnment, State Government, Union territory, local authority or any person specified by Central Government, State Government, Union territory or local authority against consideration received from Central Government, State Government, Union territory or local authority, in the form of grants." It is clear from the above entry that the following conditions are to be satisfied in order to be covered under this entry:- a. The supplier should be a Government Entity b. The supply should be that 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 p....