2021 (2) TMI 1249

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....estion:- i) "Whether the outward supply for 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....

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.... of Uttarakhand, India. The total contract price for the aforesaid works is Rs. 126,37,46,020/-with design build cost of Rs. 72,42,94,625/- 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 a....

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....ommendations of the Council, hereby makes the following further amendments in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No. 12/2017- Central Tax (Rate), dated the 28thJune, 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 Con....

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....n & Building. The operation & maintenance is supplementary supply which is secondary to design & building cost. The same view of composite supply is supported by judgement of Hon'ble Gujarat High Court in the matter of Torrent Power Ltd. R/SPECIAL CIVIL APPLICATION NO.5343 of 2018, whereby the Hon'ble HC has defined the concept 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 th....

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....divided into Design, Built, operate &transfer. Payment of design, built, operate & maintain is specified under a single schedule of payment (Schedule-6 of Contract) under various clauses. There is neither a separate contract nor a separate schedule for payment of Operation & Maintenance services. Hence, there is no evidence from the contract document which 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 ou....

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....aygrounds. 13. Promotion of cultural, educational and aesthetic aspects. 14. Burials and burial grounds, cremations, cremation grounds and electric crematoriums, 15. Cattle ponds; prevention of cruelty to animals. 16. Vital statistics including registration of births and deaths. 17. Public amenities including street lighting, parking lots, bus stops and public conveniences. 18. Regulation of slaughterhouses and tanneries. As per Section 14 of The U.P. Water supply 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 ....