AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2022 (1) TMI 1107
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....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 an applicant on matters or on questions specified in sub section (2) of se....
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.... 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 Rs. 54,20,007/ and goods of Rs. 11,75,532/- Thus, goods value is 17.82% fulfilling the first part of the entry. Thus, in view of the applicant the said service....
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.... - 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 Haresh Parekh, partner of the applicant firm has given an affidavit stating therein that:- 1. It is being clarified that the contract for supplying of manpower for sanitation and cleaning service having value of Rs. 65,95,540/- was the sole contract awarded to the entity. It i....
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....ower 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 vehicles as drivers can use only vehicles in performing their specific work. 6. As per Section 2 of the CGST Act, 2017, "Composite supply" and 'goods' are defined as follows:- (30)- ''composite supply" means a supply made by a taxable person to a recipient consisting of two or more taxab....
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.... 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 Constitution; In view of Article 243P of the Constitution, Nagar Palika Parishad, Muni Ki Reti, Dhalwala is covered under the definition of 'Municipality'. Article 243P of the Constitution is reproduced as below: Article 243P in The Constitution of India: Definitions: In this Part, unless the context otherwise requires,- (a) Committee means a Committee constituted ....
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....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 clause (5) of article 243S: Provided that the persons referred to in paragraph (i) shall not have the right to vote in the meetings of the Municipality; (b) the manner of election of the Chairperson of a Municipality. Since Nagar Palika Parishad, Muni Ki Reti, Dhalwala has 11 wards and looks after municipal work of Rishikesh city covered in its municipal area hence it satisfies all the above factors of being a municipality therefore it falls sunder the definition of "Local Authority". 10. The applicant also wants to kno....
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.... 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. However, we further find that Entry No.3 of Notification No. 12/2017 - Central Tax (rate) dated 28th June 2017 covers the following service:- "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." In the instant case, the applicant has provided only manpower without any goods for completing the....