TaxTMI 
TaxTMI 
2021 (11) TMI 226
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....aw attention to the fact that 97 (b) of CGST Act, 2017 covers the question on which advance ruling can be sought i.e. "(b) applicability of a notification issued under the provisions of this Act". Further, the issue has been addressed in Dolphin Techno Waste Management Pvt. Ltd. [2020 (35) G.S.T.L. 413 (A.A.R. - GST - W.B.)], Mahalakshmi Mahila Sangha [2020 (37) G.S.T.L. 385 (A.A.R. - GST - Kar)] etc. 3. As the Applicant is not registered under GST and provide services to Social Welfare Department (Soma] Kalyan Department), a Department of State Government, then whether TDS notification issued under section 51 would be applicable for deduction of TDS? 4. In case TDS is deducted, whether we would be entitled for refund of the same? The questions raised earlier were as under:- 1. In the instant case, whether the services provided by us to Social Welfare Department (Samaj Kalyan Department) will be liable for TDS under section 51 of CGST Act, 2017? 2. As the Applicant is not registered under GST and provide services to Social Welfare Department (Samaj Kalyan Department), a Department of State Government, then whether TDS notification issued under section 51 ....
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....terpretation of law and/or facts 2.3 The subject case is covered under section 51 of the CGST Act, 2017 i.e. Tax Deducted at Source (TDS) by the Government. As per Section 51(1) of the CGST Act, the expression TDS has been defined to include all services provided to Government under CGST Act, and the gross value to deduct TDS should be more than 2,50,000/- in order to be eligible for deduction of TDS. 2.4 As per provisions of section 51 of CGST Act, 2017 read with Section 20 of IGST Act, 2017, a deductor is required to deduct TDS at prescribed rates as CGST and SGST/UTGST (in case of intra-state) on the payment made or credited to supplier w.r.t. procurement of 'taxable goods or services'. 2.5 terms of provisions of section 22 of CGST Act read with notification issued under IGST Act, the person, who is making intra / inter-state taxable supply and having an aggregate turnover upto prescribed limit computed on PAN India basis, has been exempted from obtaining registration. At present, the threshold for services in Maharashtra is INR 20 lakhs. In view of the threshold, it can be said that TDS provisions are not applicable in the instant case. 2.6 Further as per th....
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....red under section 22 (1) of the GST Act will, therefore, depend on his gross turnover, ascertained separately from the other co-owners, exceeding the threshold as provided under the Act." 2.12 Given the aforesaid, applicant submits that TDS is not liable to be deducted in the instant case. ADDITIONAL SUBMISSION DATED 08.10.2021:- 2.13 Entry No. 3 of Notification No. 12/2017- C.T. (R) dt 28.06.2017 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 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 243 W of the Constitution'. 2.14 In this regard, applicant submits that the services provided are renting of immovable property services and thus, it's a pure service (as no specific goods are supplied). Further, the services are given to Samaj Kalyan Vibhag (Social Welfare Department) of State Government of Maharashtra. 2.15 Additionally, Article....
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....der: "TWELFTH SCHEDULE (Article 243W) "3. Planning for economic and social development 9. Safeguarding the interest of weaker sections of society, including handicapped and mentally retarded". 2.19 In the instant case the State Government is taking the property on rent for welfare of under-privileged section of the society and in particular, girls. Thus, as the services are provided to 'Samaj Kalyan Vibhag' for "Magasvargiya Mulinche Shashkiya Vastigruha" the services will be covered under the functions entrusted under Article 243W and/or 243G. 2.20 Given the aforesaid, as the services are covered under the Sr. No. 3 of Not. No. 12/2017-CT dated 28.06.2017 (as amended from time to time), the said services are exempt from GST. 2.21 It may be noted that the Section 51 of CGST Act, 2017 is applicable in case of "... payment made or credited to the supplier (hereafter in this section referred to as "the deductee") of taxable goods or services or both, where the total value of such supply, under a contract, exceeds two lakh and fifty thousand rupees" 2,22. In, view of the aforesaid, unless the supply is "taxable", the provisions of....
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....n the subject application. During the course of the hearing the applicant submitted that a building has been constructed on the plots owned by the applicant along with other co-owners and the said building is given on lease to the 'Samaj Kalyan Vibhag' (Department of Social Welfare) of the State Government of Maharashtra for "Magasvargiya Mulinche Shashkiya Vastigruha" (Government Hostel for Girls from the Backward class). Thus, the applicant has submitted that the building constructed on the plots is used as a government residential accommodation for housing girls from the backward class, by the Government of Maharashtra. 5.3.1 The first revised question asked is, whether the services provided by the applicant to Samaj Kalyan Department, State Government of Maharashtra (Social Welfare Department) for residential accommodation of underprivileged girls is exempt from GST. 5.3.2 We observe that, the first question pertains to liability of GST on the applicant, i.e. whether the impugned service is taxable or exempt under the GST Laws. 5.3.3 The applicant has submitted that the total amount received by him per annum is Rs. 18.26 lakhs, which is below the threshold amou....
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....to any function entrusted to a Municipality under article 243W of the Constitution. 5.3.7 Schedule II of the CGST Act, 2017 sets out the activities which are to be treated as supply of goods or supply of service wherein "renting of immovable property" is treated as supply of service. 5.3.8 Thus, we find that in the instant case, the supply of leasing of immovable properties by the applicant is a supply of services. The applicant has submitted that there is no supply of goods whatsoever, along with the supply of leasing services in the subject case and therefore we conclude that the subject activity is a supply of pure services (condition 'a' mentioned in para 5.3.6 is satisfied). 5.3.9 Further, we observe that the said pure services are supplied to a department of the State Government and therefore we are of the opinion that the said pure services are rendered to the State Government. Thus condition 'b' mentioned in para 5.3.6 is also satisfied. 5.3.10. Further, the third condition of Entry No. (3) of Notification No. 12/2017-CT(R) dated 28.06.2017 is that pure services should be provided to a Government Entity, etc., by way of any activity in relation t....
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....le which is relevant states the following: 26. Social welfare, including welfare of handicapped and mentally retarded. 27. Welfare of weaker sections, and of scheduled castes and the scheduled tribes. 5.3.13 The applicant has submitted that the Samaj kalyan Vibhag of the Government of Maharashtra has taken the immovable property on rent from the applicant to house the girls from the backward class communities which can be considered as a welfare measure undertaken by the Government for the under-privileged section of the society. Other than making this statement, the applicant has not submitted any evidence or submissions to state as to how his activities are covered under Article 243G/243W of the Constitution. There are no submissions made to show that the impugned services are supplied by the applicant 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. 5.3.14 Given the aforesaid, we find that even though the applicant as per his submission is supplying Pure Services, in light of insufficient mate....