TaxTMI 
TaxTMI 
2022 (1) TMI 1107
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....GSTN having Registration No. 05AAPFG8073Q1ZJ and seeking advance ruling on the following question:- 1) Whether the proposed service in the contract comes under the definition of Composite supply of Goods and Service" at SI. No. 3A of Chapter 99 as mentioned in notification number 12/2017 - Central Tax (rate) dated 28th June 2017 as amended by Notification No 2/2018 - Central Tax (rate) dated 25th January 2018. 2) Whether the proposed recipient of service i.e. Nagar Palika Parsihad, Muni ki Reti, Dhalwala falls under the definition of "local authority or a Governmental authority or a Government Entity" as mentioned and / or defined in the notification mentioned in point 1) above? 3) Whether the said service/work is covered under the "function entrusted to a Municipality under article 243 W of the Constitution"? 4) Whether the said contract is exempt from Goods and Service Tax in accordance with notification number 12/2017 - Central Tax (rate) dated 28th June 2017 as amended by Notification No. 2/2018 - Central Tax (rate) dated 25th January 2018. 2. Advance Ruling under GST means a decision provided by the authority or the appellate authority to....
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....ion of bins and primary and secondary transportation system set up at site during Haridwar, MahaKumbh 2021" Entry having SI. No 3A of Chapter 99 as mentioned in notification number 12/2017 - Central Tax (rate) dated 28th June 2017 as amended by Notification No 2/2018 Central Tax (rate) dated 25th January 2018 is reproduced below:- "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". One of the components of entry no. 3A is "Composite supply of goods and service where goods constitute not more than 25% of the value of composite supply". The quote given by the applicant and approved is attached on serial no 10 of the paperbook wherein the total cost of contract is Rs. 65,95,540/- broken down as service component as ....
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....nt requirements of the entry no. 3A of the said notification are fulfilled, hence the applicable rate of GST should be NIL. Reliance is placed on the AAR ruling of various other states in similar matter.- a. Maharashtra Authority for Advance Ruling - Application no. 32, order dated 17-03-2020 in the case of Core Projects Engineers and Consultants Private Limited b. Gujarat Authority for Advance Ruling-Application no 2018/AR/3, order dated 01/05/2019 in the case of Sh. Jayesh Anil Kumar Dalal. c. Goa Authority for Advance Ruling - Application no. 2018-19/1737, order dated 30/09/2019 in the case of M/s Sewarage & Infrastructural Development Corporation of Goa Ltd. 6. Accordingly hearing was fixed on 28,04.2021 but had to be postponed as offices were closed due to spread of COVID-19 pandemic. Later on hearing was again fixed on 29.07.2021 which was attended by Mr. Harshit Gupta, Chartered Accountant on behalf of the applicant. Mrs. Preeti Manral presented view of revenue as Concerned Officer. Mr. Harshit Gupta reiterated the facts as stated by the applicant in their application. Following the discussions held during the course of hearing Mr. Saumil Har....
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....de to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the SGST Act. 3. Now we proceed in the instant case. On going through the Letter of Award dated 25.07.2021 we find that the contract pertains to the execution of Supplying Manpower for Managing Solid Waste at Muni ki reti-Dhalwala in Kumbh Mela Area during the Haridwar Kumbh 2021 for which contract amount was Rs. 65,95,540/- inclusive of Rs. 11,75,532/- payable against safety kits to be worn by the manpower supplied by the applicant for their own safety. 4. As per the affidavit dated 30.7.2021 submitted by the applicant, it is observed that the specific work of the applicant was that they had to supply drivers to run and operate vehicles provided by the service receiver. In other words the applicant has supplied only manpower in the form of drivers but goods i.e. vehicles in the instant case, were not provided by the applicant for execution of service contract. 5. The applicant in their submissions are treating the safety kits/ protective gears as 'goods' used in the provision of manpower service. But safety kits worn by their drivers are not vehic....
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.... - Central Tax (rate) dated 28th June 2017 as amended vide Notification No. 2/2018 - Central Tax (rate) dated 25th January 2018. 9. Now we come to the question whether Nagar Palika Parishad, Muni Ki Reti, Dhalwala, Tehri Garhwal is a local authority or not. "Local Authority" is defined under Section 2(69) of the CGST Act, 2017 as follows:- (69)- "local authority " means:- (a) a 'Panchayat ' as defined in clause (d) of article 243 of the Constitution; (b) a 'Municipality ' as defined in clause (e) of article 243P of the Constitution; (c) a Municipal Committee, a Zilla Parishad, a District Board, and any other authority legally entitled to, or entrusted by the Central Government or any State Government with the control or management of a municipal or local fund; (d) a Cantonment Board as defined in section 3 of the Cantonments Act, 2006; (e) a Regional Council or a District Council constituted under the Sixth Schedule to the Constitution; (f) a Development Board constituted under article 371 [and article 371J]8 of the Constitution; or (g) a Regional Council constituted under article 371A of the....
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....oyment in non-agricultural activities, the economic importance or such other factors as he may deem fit, specify by public notification for the purposes of this Part. Composition of Municipalities is also described under Article 243R in The Constitution of India as follows:- (1) Save as provided in clause (2), all the seats in a Municipality shall be filled by persons chosen by direct election from the territorial constituencies in the Municipal area and for this purpose each Municipal area shall be divided into territorial constituencies to be known as wards. (2) The Legislature of a State may, by law, provide- (a) for the representation in a Municipality of,- (i) persons having special knowledge or experience in Municipal administration; (ii) the members of the House of the People and the members of the Legislative Assembly of the State representing constituencies which comprise wholly or partly the Municipal (iii) the members of the Council of States and the members of the Legislative Council of the State registered as electors within the Municipal area; (iv) the Chairpersons of the Committees constituted under cl....
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.... treatment and solid waste management etc. These works are covered at clause (f) under Article 243 W of the Constitution of India. As per LOA, the applicant has been awarded work for supplying manpower for managing solid waste at Muni ki Reti, The applicant supplied the manpower for the said work which is entrusted to Nagar Palika Parishad, Muni Ki Reti, Dhalwala under Article 243W of the Constitution of India. Therefore supply of manpower for this particular purpose of managing solid waste is also covered in relation to the "function entrusted to a Municipality under article 243W of the Constitution of India". 11. The last question raised by the applicant is whether the said contract is exempt from Goods and Service Tax in accordance with notification number 12/2017 - Central Tax (rate) dated 28th June 2017 as amended by Notification No. 2/2018 - Central Tax (rate) dated 25th January 2018. We have already discussed in the foregoing paras that supply of manpower is not covered under Entry No.3A of Chapter 99 as mentioned in Notification No. 12/2017 - Central Tax (rate) dated 28th June 2017 as amended vide Notification No. 2/2018 - Central Tax (rate) dated 25th January 2018. Howe....