TaxTMI 
TaxTMI 
2022 (2) TMI 842
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....der article 243W of the Constitution? And, whether this services i.e. taking reimbursement of expenses for deployed Manpower is NIL rated supply in GST? 3. The applicant have submitted statement of facts in Form GST ARA-01 as under- (i) the applicant is a Central Public Sector Enterprise under Ministry of Information Broadcasting and was established on 24th March, 1995 under the Companies Act, 2013 with 100% equity share capital held by Govt. of India. (ii) the applicant was awarded contract from Madhya Pradesh Paschim Keshetra Vidyut Vitaran Company Limited (Govt. Entity) for providing "skilled, semi-skilled and Unskilled" manpower for miscellaneous work under the three circles, AGAR, JHABUA & SHIVPURI. (iii) the applicant are deploying manpower to the government entity as under- SI.No. Name of party Division Constitution of party 1 Madhya Pradesh Paschim Keshetra Vidyut Vitaran Company Limited-O&M Circle-Agar Agar and Susner Rural Electrification or Distribution of Electricity 2 Madhya Pradesh Paschim Keshetra Vidyut Vitaran Company Limited-O&M Circle-Jhabua Jhabua, Alirajpur & STM Jhabua Rural Electrifica....
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....lled. unskilled employees (Urban) and BECIL Commission 2 Ex. En., MPPKVV Co Ltd, Susner BE/MP/17/21-22 19.06.2021 Cost of Skilled, Semi-skilled, unskilled employees (Rural) and BECIL Commission 3 Ex. En., MPPKVV Co Ltd, Susner BE/MP/18/21-22 19.06.2021 Cost of Skilled, Semi-skilled, unskilled employees (Urban) and BECIL Commission 4 Ex. En., MPPKVV Co Ltd, Jhabua BE/MP/23/21-22 19.06.2021 Cost of Skilled, Semi-skilled, unskilled employees (Rural) and BECIL Commission 5 Ex. En., MPPKVV Co Ltd, Jhabua BE/MP/24/21-22 19.06.2021 Cost of Skilled, Semi-skilled, unskilled employees (Urban) and BECIL Commission 6 Ex. En., MPPKVV Co Ltd, Alirajpur BE/MP/22/21-22 19.06.2021 Cost of Skilled, Semi-skilled, unskilled employees (Urban) and BECIL Commission 7 Ex. En., MPPKVV Co Ltd. Alirajpur BE/MP/21/21-22 19.06.2021 Cost of Skilled, Semi-skilled, unskilled employees (Rural) and BECIL Commission 8 Ex. En., MPPKVV Co Ltd, Jhabua BE/MP/25/21-22 19.06.2021 Cost of Semi-skilled, unskilled employees and BECIL Commission 9 GM (O&M), MPMKVV Co BE/MP/27/21-22 19.06.2021 Cost of Skilled....
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.... under the UPGST Act. Further for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST Act / UPGST Act would be mentioned as being under the 'CGST Act'. 9. We have gone through the Form GST ARA-01 filed by the applicant and observed that the applicant has ticked following issues on which advance ruling required- (ii) applicability of a notification issued under the provisions of the Act. As such, we find that the issue raised in the application is squarely covered under Section 97(2) of the CGST Act 2017. We therefore, admit the application for consideration on merits. 10. We have gone through the submissions made by the applicant and have examined the same. We observe that the applicant has sought advance ruling on the following questions- Whether we should charge GST @18% for taking reimbursement of expenses i.e., Basic Salary, ESIC, EPF, Bonus with service charge or only on service charge for providing pure service 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 th....
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....overnment 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 may of equity or control, to carry out a function entrusted by the Central Government, State Government, Union Territory or a local authority." 13.4 As per the website of MP Paschim Kshetra Vidyut Vitran Co. Ltd. (http://www.mpwz.co.in/#/about), the Government of Madhya Pradesh vide order dated July, 2002 has incorporated Madhya Pradesh Paschim Kshetra Vidyut Vitaran Company Limited as a wholly owned Government of Madhya Pradesh Corporations under the Companies Act, 1956 to undertake activities of distribution and retail supply for and on behalf of Madhya Pradesh State Electricity Board in the areas covered by the Commissioners of Indore and Ujjain. 13.5 As per the website of MP Madhya Kshetra Vidyut Vitran Co. Ltd (https://portal.mpcz.in/web/about-us/company-profile/), Madhya Pradesh Madhya Kshetra Vidyut Vitaran Company Limited (MPMKVVCL) was incorporated as a wholly owned Government Company on 31st May 2002, under ....
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....a Govt. entity. 13.8 We find that the term 'Panchayat' has not been defined in the CGST Act, 2017. However, Section 2(69) of the CGST Act which defines local authority states that the definition of Panchayat can be borrowed from clause (d) of Article 243 of the Constitution of India. It defines Panchayat to mean an institution of self-government of the rural area constituted under article 243B. As per Article 243B, there shall be constituted in every state, Panchayats at the village, intermediate and district levels. Article 243G of the Constitution of India entrusts powers, authority and responsibilities to the Panchayat. The Constitution of India endows the Panchayat with such powers and authority to enable them to function as institution of self-government. Also, it allows enactment of laws for the devolution of powers and responsibilities upon Panchayat subject to certain conditions with respect to the following: (a) the preparation of plans for economic development and social justice (b) the implementation of schemes for economic development and social justice as may be entrusted to them including those in relation to the matters listed in the Eleventh....
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....he inducement of the supply of goods or services or both, whether by the recipient or by any other person but shall not include any subsidy given by the Central Government or a State Government; (b) the monetary value of any act or forbearance, in respect of in response to, or for the inducement of the supply of goods or services or both, whether by the recipient or by any other person but shall not include any subsidy given by the Central Government or a State Government: Provided that a deposit given in respect of the supply of goods or services or both shall not be considered as payment made for such supply unless the supplier applies such deposit as consideration for the said supply" 14.2 Thus, the above definition of 'consideration' includes any payment made or to be made, whether in money or otherwise, in respect of, in response to, or for the inducement of, the supply of goods or services or both, whether by the recipient or by any other person but shall not include any subsidy given by the Central Government or a State Government. It also includes the monetary value of any act or forbearance, in respect of, in response to, or for the inducement ....
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....all not include any discount which is given- (a) before or at the time of the supply if such discount has been duly recorded in the invoice issued in respect of such supply; and (b) after the supply has been effected, if- (i) such discount is established in terms of an agreement entered into at or before the time of such supply and specifically linked to relevant invoices; and (ii) input tax credit as is attributable to the discount on the basis of document issued by the supplier has been reversed by the recipient of the supply." 15.2 On going through the above, it can be seen that Section 15(1) clearly stipulates that the value of supply of goods or services or both shall be the transaction value, which is the price actually paid or payable for the said supply of goods or services or both where the supplier and the recipient of the supply are not related and the price is the sole consideration for the supply. Further, sub-section (2) of Section 15 elaborates in detail, the items that are required to be included in the value of supply, whereas sub-section (3) of Section 15 specifically elaborates the items that are not to be included in the va....