TaxTMI 
TaxTMI 
2020 (7) TMI 805
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....apping the renewable sources of energy and for implementation of various project of public interest and for research, development and popularization of non-conventional & renewable sources of energy with Central Finance Assistance provided by the Ministry of New and Renewable Energy, Govt. of India, New Delhi. CREDA was registered on 25/05/2001, under the Society's Registration Act, 1973. i. CREDA is also registered under Section 12AA of the Income Tax Act, 1961. ii. Notification No.12/2017-Central Tax (Rate) dated 28th June, 2017, Sr.No.1 provides for exemption from whole of GST on "services by an entity registered under Section 12AA of Income-Tax Act, 1961 by way of charitable activities". iii. The Notification supra, stipulates that "charitable activities' means / include activities relating to preservation of environment including watershed, forests and wildlife. 2.1 It has been the contention of the appellant that Chhattisgarh State Renewable Energy Development Agency (CREDA) is working extensively as a State Government nodal body for research, development and popularization of non-conventional & renewable sources of energy as the State ha....
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....Hence, the appellant is liable to pay GST on the impugned supply of goods or services." 2.4 The Appellant preferred an appeal on the issue as mentioned in para 2.3 above, before the Appellate Authority for Advance Ruling in Chhattisgarh, Atal Nagar, Raipur. 2.5 As per Section 100 (1) of CGST Act, appeal against the advance ruling can be presented before the Appellate Authority. 3. Contention of the Appellant: a) The Appellant states that it is a Nodal Agency of Government of Chhattisgarh, registered under Section 12AA of the Income Tax Act,1961 and formed for implementing Solar and Renewable Energy Projects in the State having significant impacts on Preservation of environment. As a part of implementing its major projects, it provides allied services as ancillary and necessary, to perform its work more efficiently with the best of the resources, vendors, suppliers available in the country. b) From the above services, appellant is in receipt of consideration in the form of Registration fees, Supervision/Service Charges, Processing fees, RVE Connection Charges, Processing fees (Sour-Sujila), Entry fees to Energy Park, Penalty Charges received, RE Issuance Charges etc. ....
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....ices rendered by them, being an entity registered under Section 12AA of the Income Tax Act, 1961 by way of activities claimed to be charitable activities, on the services provided by CREDA like registration fees, supervision/service charges, processing fees, RVE connection charges, processing fees (Sour-Sujila), entry fees to energy park, penalty charges received, Re issuance charges, scrap battery sale & sale of tender forms. To have a better perspective of the matter, it is of paramount importance to have a detailed analysis on all the related aspects of the above Notification like entity registered under Section 12AA of the Income Tax Act, 1961, the services / activities under taken by the appellant claimed to be "charitable", definition of 'Charitable activities', Memorandum of Association, rules-regulation and activities into which CREDA is involved in. 5.1 Notification No.12/2017-Central Tax (Rate), dated-28-06-2017:- Serial No.1, chapter 99 of the above notification exempts "the services by an entity registered under Section 12AA of the Income tax Act, 1961 (43 of 1961) by way of charitable activities." Under the definitions mentioned in point 2 (r) of the a....
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....nd set up units (including demonstration) of all non-conventional & renewable energy devices specifically to encourage, develop and extend the use of- (i) Bio-energy including energy plantations. (ii) Devices for utilizing wind energy. (iii) Devices for utilizing solar, energy including photo-voltaic systems. (iv) Devices for utilizing Geothermal energy. (c) To undertake or sponsor studies on renewable and non-conventional energy generation, distribution and utilization including its environmental effects, socio-economic feasibility, cost benefit analysis and techno-economic feasibility. (d) To formulate and implement a broad based energy conservation programme and a programme for future energy use. (e) To take special steps to train and encourage young scientists and technologists working in the field of energy resources and plan for their proper involvement in the development of alternate and renewable energy sources. (f) To establish and maintain a technical library and information center for collecting, collating and dissemination information on renewable energy resources. (g) To undertake all such....
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....l works and works of laying of power distribution network at various sites as per requirement of CREDA. 5.5 Analysis and discussion:- (i) On the basis of Notification No.12/2017-Central Tax (Rate), dated-28-06-2017, the appellant desires to know the applicability of GST exemption for the services mentioned below:- a) Registration Fees b) Supervision / Service Charges c) Processing Fees d) RVE CONNECTION Charges e) Processing Fees (Sour-Sujila) f) Entry Fees to Energy Park g) Penalty Charges Received h) RE issuance Charges The appellant also seeks ruling as regards their activities of Scrap battery sale and from sale of tender forms. (ii) The appellant undertakes various schemes in the State of C.G. by way of tender works being granted to system integrators, vendors and contractors. In the above tendering process, CREDA collects registration Fees, Supervision / Service Charges, Processing Fees, RVE CONNECTION Charges, Processing Fees (Sour-Sujila), Entry Fees to Energy Park, Penalty Charges Received, RE issuance Charges etc. from the prospective tenderers and are also engaged in scrap battery sale an....
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....comes. Hence, exemption under CGST Act, 2017 on income is admissible only if the same is towards any charitable activity. (vii) As discussed in the preceding para, it is observed that vide clause (r) of para 2 of the said Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017, the expression "charitable activities" has been defined as follows:- (r) "charitable activities" means activities relating to - (i) public health by way of ,- (A) care or counselling of (I) terminally ill persons or persons with severe physical or mental disability, (II) persons afflicted with HIV or AIDS, (III) persons addicted to a dependence-forming substance such as narcotics drugs or alcohol; (B) public awareness of preventive health, family planning or prevention of HIV infection; (ii) advancement of religion, spirituality or yoga; (iii) advancement of educational programmes or skill development relating to,- (A) abandoned, orphaned or homeless children; (B) physically or mentally abused and traumatized persons; (C) prisoners; or (D) persons over the age of 65 years residing'....
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....rgy conservation programme, energy education park etc. The above schemes are funded by the grants received from the Central Government and State Government. CREDA creates empanelment of systems integrators, vendors and contractors to work as channel partner for implementing various solar photovoltaic/solar thermal applications in market mode in the state. The system integrator shall be the agency for integration and installation of Solar PV/Solar Thermal Systems. Their scope of work will be marketing, survey, preparation of DPR / formulation of proposal, designing, installation, commissioning of these systems and comprehensive operation and maintenance of these systems for five years as per guidelines of CREDA. The vendors will be the registered suppliers for supply of Batteries, SPV Modules, Inverters, PCUs, VFD, Controlling and Monitoring Instruments, Electrical Material such as cables, conductors, earthing and LA, switches, luminaries and allied material etc, Poles and other fabrication items such as brackets, stay sets, Structures for SPVPP, SPV Pumps and Dual Pumps etc. They will supply the material of approved make and specifications to registered Sis for installation / integ....