TaxTMI 
TaxTMI 
2021 (8) TMI 783
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....lock, Chainlink Fencing type Compound wall, Entrance gate, Parking, Bore well, Security cabin, Service Room. The said construction involves the supply of labour plus supply of various goods such as cement, bricks, sand, TMT, steel wires, sanitary wares etc. 2. The applicant has submitted that the activity of "construction of sports complex" is a supply of service within the meaning of Section 7(1)(a) of the CGST Act, 2017 read with Section 2(102) of the said Act. The said supply of service is an intra state supply within the meaning of Section 8(2) of the IGST Act, 2017 and is chargeable CGST under Section 9 of CGST Act, 2017 and SGST under Section 9 of CGST Act, 2017. 3. The applicant has submitted that Section 2(119) of CGST Act, 2017 defines "work contract" as: Work Contract means a contract for building, construction, fabrication, completion, erection, installation, fitting out, improvement, modification, repair, maintenance, renovation, alteration, commissioning of any immovable property wherein transfer of property in goods (whether as goods or in some other form) is involved in the execution of such contract. The government vide Notification No. 11/2017-CT (Rate) dated 28.....
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....e said Sports Complex is not for the purpose of any business or profession and also that the recipient of service i.e. AUDA, is local authority within the meaning of Section 2(69) of the CGST Act 2017, accordingly, the said service of "Development and Construction of Sports Complex" for the Ahmedabad Urban Development Authority, merits classification under the entry at Sr. No. 3(vi)(a) of the said Notification and applicable CGST rate is thus 6 % CGST +6% SGST. 7. The applicant has given additional submission vide letter dated 21.06.2021 wherein they have submitted following as under: (1) Regarding constitution of the AUDA: (i) In exercise of the powers conferred by Section 3 of the Gujarat State Legislature (Delegation of Powers) Act, 1976, the Honourable President of India enacted The Gujarat Town Planning and Urban Development Act, 1976 (hereinafter referred to as the said Act). The said Act was notified on 21.06.1976 vide the Gujarat Government Gazette. The objective of the said Act is to consolidate and amend the law relating to the making and execution of development plans and town planning schemes in the State of Gujarat. Section 22 sub sections (1) and (2) of the said ....
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....e case may be, part thereof, ex-officio; (v) the Chief Town planner or his representative, ex-officio;, (vi) the Chief Engineer or Engineers (Public Health) of the local authority or authorities functioning in the urban development area or his or their nominee or nominees, ex-officio; [(vi-a) the Municipal Commissioner of the Municipal Corporation, if any, functioning in the urban development area, ex-officio;] (vii) a member secretary to be appointed by the State Government who shall also be designated as the Chief Executive Authority of the Urban Development Authority. (2) Powers and functions of urban development authority. - (1) As per the provisions of Section 23(1) of the said Act, the functions of an urban development authority shall be as under : (i) to undertake the preparation of development plans under the provisions of this Act, for the urban development area; (ii) to undertake the preparation [and execution] of town planning schemes [or local Area Plan] under the provisions of this Act, if so directed by the State Government; [(ii-a) to undertake the preparation and execution of Local Area Plan under the provisions of this Act, if so directed by the S....
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.... of the Notification Number : 11/2017 - Central Tax (Rate) dated : 28.06.2017, the phrase " Governmental Authority" has been defined as under : (ix) "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 90per cent. or more participation by way of equity or control, to carry out any function entrusted to a Municipality under article 243W of the Constitution or to a Panchayat under article 243G of the Constitution. (2) The Ahmedabad Urban Development Authority is constituted under an Act of the State Legislature i.e. under the The Gujarat Town Planning and Urban Development Act, 1976. Also, the full control of the said Ahmedabad Urban Development Authority is with the State of Gujarat as is evident from the constitution of the said Authority under Section 22(4) of the said Act. (3) The Ahmedabad Urban Development Authority is entrusted with the functions of a Municipality/local authority by the Government of Gujarat with respect to the area under the jurisdiction of the AUDA. This is evident on a perusal of Sections 22 and 23(1) of the said Act. Thu....
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....g purposes" shall include any land likely to be used as, or for the purpose of providing, open spaces, roads, streets, parks, pleasure or recreation grounds, parking spaces or for the purpose of executing any work upon or under the land incidental to a town planning scheme, whether in the nature of a building work or not. (3) A town planning scheme may make provision for any of the following matters, namely:- (a) The laying out or relaying out of land, either vacant or already built upon; (b) The filling up or reclamation of low-lying, swampy or unhealthy areas, or levelling up of land; (c) Lay-out of new streets or roads, construction, diversion, extension, alteration, improvement and closing up of streets and roads and discontinuance of communications; (d) The construction, alteration and removal of buildings, bridges and other structures; (e) The allotment or reservation of (2) land for roads, open spaces, gardens, recreation grounds, schools, markets, green-belts, dairies, transport facilities, public purposes of all kinds; (f) Drainage, inclusive of sewerage, surface or sub-soil drainage and sewage disposal; (g) Lighting; (h) Water supply; (i) The preservat....
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....e Government refusing to sanction the preliminary scheme, or in the event of the withdrawal of the scheme under section 66, or on the coming into force of the final scheme; (m) such other matters not inconsistent with the objects of this Act as may be prescribed. Section 91: Fund Of The Appropriate Authority :- (1) An appropriate authority shall have and maintain its own fund to which shall be credited- (a) All moneys received by the authority by way of grants, loans,1[advances, fees, development charges or otherwise;] (b) All moneys derived from its undertakings, projections and other sources; (c) Such amount of contributions from local authorities as the State government may specify from time to time to be credited to the fund of the authority. (2) The fund of an appropriate authority shall be applied towards meeting- (a) Expenditure incurred in the administration of this Act; (b) Cost of acquisition of land for the purposes of this Act; (c) Expenditure for any development of land in the development area; (d) Expenditure for such other purposes as the State Government may direct. (3) An appropriate authority may keep in current account with the State Ban....
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....andards Vs. DGIT (exemptions) reported in [2013] 212 Taxman 210 , has made very poignant observation , which is reproduced as under : In these circumstances, "rendering any service in relation to trade, commerce or business" cannot, in the opinion of the Court, receive such a wide construction as to enfold regulatory and sovereign authorities, set up under statutory enactments, and tasked to act as agencies of the State in public duties which cannot be discharged by private bodies. Often, apart from the controlling or parent statutes, like the BIS Act, these statutory bodies (including BIS) are empowered to frame rules or regulations, exercise coercive powers, including inspection, raids; they possess search and seizure powers and are invariably subjected to Parliamentary or legislative oversight. The primary object for setting up such regulatory bodies would be to ensure general public utility. 10. On the basis of the above submission, the applicant is of the opinion that the development of AUDA Sports Complex at Manipur, Ahmedabad by the Ahmedabad Urban Development Authority is meant pre-dominantly for advancement of general public utility and welfare, as per the avowed object....
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....to refer to CBIC's Sectoral FAQ of Government Services which is reproduced herein as follows: Question 5: Are all local bodies constituted by a State or Central Law regarded as local authorities for the purposes of the GST Acts? Answer: No. The definition of 'local authority' is very specific and means only those bodies which are mentioned as 'local authorities' in clause (69) of section 2 of the CGST Act, 2017. It would not include other bodies which are merely described as a 'local body' by virtue of a local law. For example, State Governments have setup local developmental authorities to undertake developmental works like infrastructure, housing, residential & commercial development, construction of houses, etc. The Governments setup these authorities under the Town and Planning Act. Examples of such developmental authorities are Delhi Development Authority, Ahmedabad Development Authority, Bangalore Development Authority, Chennai Metropolitan Development Authority, Bihar Industrial Area Development Authority, etc. Such developmental authorities formed under the Town and Planning Act are not qualified as local authorities for the purposes of the GST Acts. 18.1 'Government ....
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....uch club; and (i) any activity or transaction undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities'. 19.2 We note that the definition of business is an inclusive definition and the activities specified are only indicative and not exhaustive. 19.3 We refer to the website of AUDA- www.auda.org.in- we find an option for online booking at a Sports facility already existing at Bopal, webpage- http://obs.auda.org.in/-reproduced as follows from said website: "ONLINE BOOKING SYSTEM SPORTS COMPLEX @ SOUTH BOPAL Booking Till Date 114 Basketball Booking 119 Volleyball Booking ABOUT US With a staff of only 250 people, AUDA is lean Organization, Planning and Regulating development in an urbanized area of over 150 sq.km. of total area of 1866 sq.km. Ahmedabad Urban Development Authority (AUDA) was established on February 1. 1978 by the Government of Gujarat. The prime objective of the AUDA's formation was to carry out the sustained plan-ned development of the area failing outside the periphery of Ahmedebad Municipal Corporation. BOOK YOUR TIME SLOT Individual/Group Book Now (/Registration.aspx?type=1)....