TaxTMI 
TaxTMI 
2021 (11) TMI 395
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....ct and the MGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to any dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the MGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, the expression 'GST Act' would mean CGST Act and MGST Act. 2. (A) FACTS AND CONTENTION - AS PER THE APPLICANT: The submissions made by MAHA MUMBAI METRO (M3) OPERATION CORPORATION LIMITED, the applicant, are as under- 2.1 The applicant, having their principal place of business at C-14, 15, Ground Floor, MMRDA Office Building, Bandra Kurla Complex, Bandra East, Maharashtra, 400051 is engaged in supply of service with bearing GSTIN-27AAMCM7279C123. Applicant is engaged in providing Local land Transport services of passengers by railways, metro, monorail, bus, tramway, autos, three wheelers, scooters and other motor vehicles. The SAC for the service is 9964 and GST rate in relation to same is 18%. 2.2 Applicant is wholly owned subsidiary of Mumbai Metropolitan Region Development Authority (herein referred as "MMRDA") whose aim is to integrate the Operati....
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....n of India it cannot but mean to indemnify having regard to the common grammatical meaning of the word "reimbursement". Reimbursement has to mean and imply restoration of an equivalent for something paid or expended. Reimbursement presupposes previous payment. 2.6 The Goods and Service Tax (GST) regime has introduced the concept of supply as a taxable event while doing away with the erstwhile taxable events of manufacture, sale, service etc. 2.7 As per Section 7 of the CGST Act, the term 'supply' also includes transaction in goods or services between related persons or distinct persons, whether or not for a consideration. It would be relevant to note that the scope of supply includes supply of goods or services in different forms viz; sale, transfer, barter, exchange, license, rental, lease or disposal, made or agreed to be made for a consideration by a person in the course or furtherance of business. While "goods" have been defined in terms of Section 2 (52) of the CGST Act to mean every kind of movable property other than money and securities but includes actionable claim, growing crops, grass and things attached to or forming part of the land which are agreed to be....
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....the services. Therefore, value of free supplies of diesel and explosives would not warrant inclusion while arriving at the gross amount charged on its service tax is to be paid. Therefore, all these appeals are also dismissed. FURTHER SUBMISSIONS MADE BY THE APPLICANT 2.11 Notification 12/2017-Central Tax rate government has exempted following services provided by governmental entity:- i) Services by governmental authority by way of any activity in relation to any function entrusted to a municipality under article 243 W of the Constitution ii) Services by a Governmental Authority by way of any activity in relation to any function entrusted to a Panchayat under article 243G of the Constitution. 2.12 "Government Entity" means an authority or a board or any other body including a society, trust, corporation, (i) set up by an Act of Parliament or State Legislature; or (ii) established by any Government, With 90 per cent. or more participation by way of equity or control, to carry out a function entrusted by the Central Government, State Government, Union Territory or a local authority.] 2.13 243G. Powers, authority and responsibi....
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....ant has also submitted that it is 100% owned by state of A.P.; that it is answerable to Government of Andhra Pradesh; that its Chairman is the Principal Secretary. The Government of Andhra Pradesh, issued G.O. Rt.No: 599, MA&UD(H2) Department, dated 14.09.2015, in which, the Government of Andhra Pradesh has decided that the special purpose vehicle for Vijayawada Metro Rail Project, hence forth be called as AMARAVATHI METRO RAIL CORPORATION LIMITED (AMRC)'. Based on above facts, it is evident that the applicant is a Government authority as per the Notification No. 12/2017-Central Tax dated 28th June 2017. 2.18 Urban Planning is a function entrusted to Municipality under Article 243 W of the Constitution. The applicant has invited our attention to Ministry of Urban Development, Government of India in K-14011/07/2007/Metro/UT dt.29-08-2007, addressed to all the Chief Secretaries of the States and Union Territories, informing the decision that the urban transport and urban planning must go together and that urban transport is an integral part of urban development, which will help in ensuring that urban transport remains an integral part of urban planning at all the times and cit....
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....-in-aid had been totally utilized for implementing the welfare schemes. Nothing over and above these grants-in-aid was received by the assessee from any of the governments. In other words, the assessee did not receive any consideration for any service' to the governments. Therefore, we hold that, in the implementation of the Governmental schemes, the assessee as implementing agency did not render any taxable "service" to the government. The department seems to be considering the Governments to be "clients" of APITCO. The question now is whether there was "service provider-client" relationship between the assessee and the governments. Here, again, the nature of the amounts paid by the governments to the assessee is decisive. A client must not only pay the expenses of the service but also the consideration or reward for the service to the service provider. Admittedly, in the present case, there was no payment, by any government to the assessee, of any amount in excess of what is called "grant-in-aid". Thus any service provider-client relationship between the assessee and the governments is ruled out. It is true that the assessee had executed the governmental schemes mainly throug....
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....empt under GST. 03. CONTENTION - AS PER THE CONCERNED OFFICER: OFFICER SUBMISSION DATED 19.07.2021:- 3.1 With reading of application and question raised by application, in my opinion, though the applicant has called the amount received from M.M.R.D.A. as a reimbursement, it is a consideration paid by principal contractor to his sub-contractor and should be taxed as per law. 04. HEARING 4.1 Preliminary e-hearing in the matter was held on 20.07.2021. Authorized representatives of the Applicant, Shri Vishal Sheth, CA and Shri Rajkumar Kendre, General Manager were present and made submissions with respect to admission of their application. Jurisdictional officer Shri. K. Shrikhande, STO, C-903, Bandra East, Nodal Division 5, Mumbai was also present. 4.2 The application was admitted and called for final e-hearing on 12.10.2021. The Authorized representatives of the applicant, Shri. Vishal Sheth, CA and Shri. Rajkumar Kendre, GM (HR) were present. Jurisdictional officer Shri. K.N. Shrikhande, STO, MUM-VAT-C-903, Nodal-5 was absent. The jurisdictional officer wanted a week's time to file written submission, same was granted. The applicant raised new issue by referrin....
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.... generated or earned from those expense. In other words applicant has stated that no supply of goods/services are being provided to MMRDA. 5.7 However in their additional submissions, the applicant has also stated that it is rendering consultancy services for preparation of transport studies such as comprehensive mobility plan, transit oriented development plan, NMT plan and consultancy services of transaction advisors/preparation of DPRs, which comes within the purview of the functions of Municipality under Article 243 read with Twelfth Schedule to the Constitution of India, and accordingly, falls within the purview of Sr. No. 3 of Notification 12/2017- Central Tax (Rate) dated 28.06.2017 which provides exemption to 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 or a Government Entity 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. During ....
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....s per the applicant's submissions, at present there is no supply of goods. Thus, in our opinion the applicant is rendering Pure Services to MMRDA. 5.11 Since the applicant has also contended if the amounts received by them are treated as consideration for services rendered then the provisions of Sr. No. 3 of Notification No. 12/2017-CT(R) dated 28.06.2017 are applicable in its case. The Relevant Entry No. (3) Of Notification No. 12/2017-CT(R) dated 28.06.2017 is as under:- SI.No. Chapter, Section, Heading, Group or Service Code (Tariff) Description of Services Rate (per cent) Condition (1) (2) (3) (4) (5) 3 Chapter 99 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 1 [or a Government Entity] 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. Nil Nil 5.12 For any supply to be covered under Sr. ....
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....ent of Revenue) No.11/2017-Central Tax (Rate), dated the 28th.lune, 2017, published in the Gazette of India, Extraordinary, Part Section 3, Sub-section (i), vide number G.S.R. 690(E), dated the 28`"June, 2017, namely:- In the said notification, (i) in the Table, - (a) against serial number 3, - A, in item (iii), in column (3), for the words "Government, a local authority or a Governmental authority", the words "Central Government, State Government, Union territory, a local authority, a Governmental Authority or a Government Entity" shall be substituted; B. in item (vi), in column (3), for the words "a local authority or a Governmental authority" the words "a local authority, a Governmental Authority or a Government Entity" shall be substituted; C. in items (iii) and (vi), in column (5), for the existing entry, the following entry shall be substituted, namely: - "Provided that where the services are supplied to a Government Entity, they should have been procured by the said entity in relation to a work entrusted to it by the Central Government, State Government, Union territory or local authority, as the case may be" ....
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....wo members of the Maharashtra Legislative Assembly, representing constituencies falling, wholly or partly, within the limits of the Mumbai Metropolitan Limits, to be nominated by the State Government; (xi) one member of the Maharashtra Legislative Council, to be nominated by the State Government; (xii) the Chief Secretary to the Government of Maharashtra; (xiii) the Municipal Commissioner of the MCGM (xiv) the Secretary to the Government of Maharashtra, Urban Development Department; (xv) the Secretary to the Government of Maharashtra, Housing Department; (xvi) the Managing Director, City and Industrial Development Corporation of Maharashtra; (xvii) the Metropolitan Commissioner; 5.20 Thus from the above, we clearly find that MMRDA is constituted and established by the State Government of Maharashtra with 100% participation by way of Equity or Control to carry out the function entrusted to it by the State Government viz. Preparation of Regional Development Plans , Providing financial assistance for significant regional projects, Providing help to local authorities and their infrastructure projects, coordinating execut....