TaxTMI 
TaxTMI 
2021 (2) TMI 1249
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....or operation and maintenance of sewage treatment plant of 26 MLD capacity at LakkarGhat, Rishikesh, Dehradun, State of Uttarakhand, India to Uttarakhand Pay Jal Nigam (an entity working under the Ministry of Drinking Water & Sanitation, Govt, of Uttarakhand as an undertaking of Uttarakhand Government) is exempt from CGST/SGST and IGST as per notification no. 2/2018-Central Tax (Rate) dated 25.01.2018, 2/2018-Integrated Tax (Rate) dated 25.01.2018 and 138/2018/18(20)/ XXVH(8)/ 2017/ CTR-2, Dehradun dated 06.02.2018?". ii) Whether the inward supplies directly received for above services by the applicant are also exempt from GST? 2. Advance Ruling under GST means a decision provided by the authority or the appellate authority to an applicant on matters or on questions specified in sub section (2) of section 97 or sub section (1) of section 100 in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant. 3. As per the said subsection (2) of Section 97 of the Act advance ruling can be sought by an applicant in respect of:- (a) Classification of any goods or services or both (b) Applicability of a notification issued under....
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....,42,94,625/- and operation and maintenance cost of Rs. 53,94,51,394.98. 6. In the present case we are restricting our conclusion to the facts and circumstances which was filed for our consideration in the application. Now we proceed to decide the issue in hand:- i) Whether the notification no. 2/2018-Central Tax (Rate) dated 25.01.2018, 2/2018-Integrated Tax (Rate) dated 25.01.2018 and 138/2018/18(20)/XXVIl(8)/2017/CTR-2, Dehradun dated 06.02.2018 are applicable to the outward supply provided by the applicant ? ii) Whether the inward supplies directly received for above services by the applicant are also exempt from GST? 7. In the instant case we find that the work is allotted to the applicant by UPJN is related to (i) Survey, review the design, redesign where necessary and build new /replace outfall/interceptor sewer line of about 15 km length, (ii) survey, design and construction of 03 nos. new sewage pumping stations, (iii) upgradation/rehabilitation of 02 no. existing sewage pumping station and all appurtenant structures, (iv) operation and maintenance of outfall/interceptor sewer line and pumping stations for a period of 01 year in Rishikesh, State of Uttarakh....
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....une, 2017, published in the Gazette of India, Extraordinary, Part U, Section 3, Sub-section (i), vide number G.S.R. 691(E), dated the 28th June, 2017, namely:- In the said notification, in the Table,- (a) against serial number 3, in the entry in column (3), after the words "a Governmental Authority" the words 'or a Government Entity" shall be inserted; (b) after serial number 3 and the entries relating thereto, the following serial number and entries shall be inserted, namely:- (1) (2) (3) (4) (5) 3A Chapter 99 Composite supply of goods and services in which the value of supply of goods constitutes not more than 25 per cent, of the value of the said composite supply 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. NIL NIL"; Notification No. 2/2018- Central Tax (Rate) New Delhi, the 25th January, 2018: G.S.R....(E).- In exercise of the powers conferred by su....
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....pt of composite supply in a clear and unambiguous manner. The facts of the case especially the contract defines it as composite supply because Operation & Maintenance is ancillary to build & design. To answer the specific question raised by the applicant as to whether the outward supply for operation and maintenance of sewage treatment plant of 26 MLD capacity at LakkarGhat, Rishikesh to UPJN is exempt from CGST/SGST and IGST as per notification no. 2/2018-Central Tax (Rate) dated 25.01.2018 & 2/2018-Integrated Tax (Rate) dated 25.01.2018and as to whether the inward supplies directly received for above services by the applicant are also exempt from GST, we find on perusal of the Contract signed between the applicant and UPJN and "Letter of Acceptance" as submitted by the applicant, "The Name of Work" is given as below:- (A) Survey, review the design, redesign where necessary and build new/replace outfall/interceptor sewer line of about 15 km length including survey, design and construction of 03 nos. new sewage pumping stations, upgradation/ rehabilitation of 02 no. existing sewage pumping station and all appurtenant structures and operation and maintenance of outfall/intercepto....
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....supports the contention of applicant as specified in Advance Ruling application. Besides Operation & Maintenance of sewerage treatment plant of 26 MLD capacity at LakkarGhat, Rishikesh for 15 years, the applicant has also to design and build the same which is a composite supply for that particular work also and as per Contract, design build cost of Rs. 72,42,94,625/- and operation & maintenance cost of Rs. 53,94,51,394.98 are inclusive of design build cost and O&M cost of sewerage treatment plant of 26 MLD capacity at LakkarGhat, Rishikesh and therefore value of supply of goods in the outward supply for operation & maintenance of sewerage treatment plant of 26 MLD capacity at LakkarGhat, Rishikesh cannot be justified below 25 per cent of the value of that particular composite supply. Now we proceed to discuss whether the outward supply of operation & maintenance of sewerage treatment plant of 26 MLD capacity at LakkarGhat, Rishikesh is being 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 th....
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.... and Sewerage Act, 1975 read with The Uttaranchal (The Uttar Pradesh Water supply and Sewerage Act, 1975) Adaptation and Modification Order, 2002,the following functions are entrusted to UPJN: Section 14. Functions of the Jal Nigam.-The functions of the Nigam shall be the following, namely: i) the preparation, execution, promotion and financing the schemes for the supply of water and for sewerage and sewage disposal; ii) to render all necessary services in regard to water supply and sewerage to the State Government and local bodies, on request to private institutions or individuals; iii) to prepare State plans for water supply, sewerage and drainage on the directions of the State Government; iv) to review and advise on the tariff, taxes and charges of water supply in the areas of Jal Sansthans and local bodies which have entered into an agreement with the Nigam under Section 46; v) to assess the requirement for materials and arrange for their procurement and utilisation; vi) to establish State standards for water supply and sewerage services; vii) to perform all functions, not stated herein which were being performed by the Local Self-Government Engineering Departmen....