TaxTMI 
TaxTMI 
2022 (5) TMI 1355
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....ification 12/2017-Central Tax (Rate) dated 28/06/2017) 3. Whether Renting of immovable Property Services provided to PCSCL exempt as per GST Law. If taxable then at what rate GST will be applicable. 4. Whether Utility charges recovered from PCSCL are exempt as per GST Law. If taxable then at what rate GST will be applicable 5. Whether PCSCL liable to deduct tax at source (GST TDS as per provisions of GST Law)? At the outset, we would like to make it clear that the provisions of both the CGST Act and the MGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to any dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the MGST Act. Further to the earlier, henceforth for the purpose of this Advance Ruling, the expression 'GST Act' would mean CGST Act and MGST Act. 2. FACTS AND CONTENTION - AS PER THE APPLICANT 2.1 The applicant, M/s. Auto Cluster Development and Research Institute (Auto Cluster) is a Company Limited by guarantee, formed under section 25 of Company Act 1956. Auto Cluster is Special Purpose Vehicle formed under cluster development ....
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....e management of PCSCL is controlled by Government of India, Government of Maharashtra. Currently the appointment of management governed by GR issued by Government of Maharashtra. Based on this fact, it can be concluded that, PCSCL is controlled by Governmental Authority. 2.6 As per the Smart City Mission as well as Memorandum of Association and Article of Association of PCSCL, it is engaged in providing infrastructural facility as per Article 243W of Constitution and Article 243G of Constitution. 2.7 Renting of immovable Property Services is pure service. Utility charges are reimbursement of cost of actual facility used as per bill issued & payable to third party. Considering all facts, Renting of immovable property and Reimbursement of utility charges will be exempted from GST as per Sr. 3, Chapter 99 of Notification No. 12/2017-Central Tax (Rate) dated 28/06/2017. 03. CONTENTION - AS PER THE CONCERNED OFFICER: OFFICER SUBMISSION 17.12.2020:- 3.1 M/s. Auto Cluster Development and Research Institute, the applicant, headed by the Commissioner of Pimpri Chinchwad Municipal Corporation (PCMC) is a special purpose vehicle formed under cluster development scheme of the Go....
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....ted 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." Providing the service of renting of immovable property and utilities such as electricity are not municipal functions. As discussed above, PCSCL is not eligible for the said exemption as a recipient of service nor Auto Cluster is exempt from charging GST to them. Auto Cluster is providing a service for which they are receiving consideration. Therefore, they must pay GST. Whether Renting of Immovable Property Services provided to PCSCL exempt as Per GST Law. If taxable at what rate GST will be applicable. 3.8 Not exempt, PCSCL has to self-assess the services to GST from time to time by referring to the notifications etc., which are in public domain. Whether utility charges recovered from PCSCL are exempt as per GST Law. If taxable then at what rate GST will be applicable. 3.9 Not exempt, PCSCL has to self-assess the services to GST from time to time by referring to the notifications etc which are in public domain. Whether PCSCL liable to deduct tax at source (GST TDS) as per provisions of GST Act. 3.10 This is ....
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....e, a Special Purpose Vehicle formed under cluster development scheme of Government of India, headed by Commissioner Pimpri Chinchwad Municipal Corporation of Maharashtra (PCMC), provides Testing, Inspection, Prototype, Renting of immovable Property and other allied services to industry. The applicant provides Renting of immovable Property Services to Pimpri Chinchwad Smart City Limited (PCSCL) and also collects utility charges (eg. Electricity charger) from PCSCL as Reimbursement. In view of the submissions made by the applicant, we now take up their questions as under:- Q. 1 Whether PCSCL is termed as Government or Local Authority of Government Authority or Governmental Entity as per GST Law? 5.3.1 Section 95 of the CGST Act, 2017 states that, "advance ruling" 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. 5.3.2 As per the submissions made, it is seen that the subject question raised is pertaining to the recipient....
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....ks 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 243W of the Constitution." 5.5.5 The relevant Entry Sr. No. (3) of Notification No. 12/2017-CT(R) dated 28.06.2017 as amended by Notification No. 02/2018-CTR dated 25.01.2018, is as under:- Sl.No. Chapter, Section, Heading, Group or Service Code (Tariff) Description of Services Rate (per cent) Condition (1) (2) (3) (4) (5) 3 Chapter 99 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 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 artic....
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....aordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 691 (E), dated the 28th June, 2017, namely.:- (ii) in paragraph 2, for clause (4), the following shall be substituted, namely: - (zf) "Governmental Authority" means on authority or a board or any other body, - (i) set up by an Act of Parliament or a State Legislature; or (ii) established by any Government, with 90 per cent. or more participation by way of equity or control, to carry out any function entrusted to a Municipality under article 243 W of the Constitution or to a Panchayat under article 243 G of the Constitution. (zfa) "Government 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 way of equity or control, to carry out a function entrusted by the Central Government, State Government, Union Territory or a local authority." 5.5.10 In view of the above, we are required to ascertain whether 'PCSCL' would be covered under the definition of &#....
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....ted in the twelfth Schedule. (b) The Committees with such powers and authority as may be necessary to enable them to carry out the responsibility conferred upon them including those in relation to the matters listed in the Twelfth Schedule." 5.5.16 Twelfth Schedule of the Indian Constitution provides for the following functions (relevant) as under: 1. Regulation of land use and construction of land buildings. 2. Urban planning including the town planning. 3. Planiling for economic and social development 4. Urban poverty alleviation 5. Water supply for domestic, industrial and commercial purposes services 6. Fire Services. 7. Public health sanitation, conservancy and solid waste management 8. Slum improvement and up-gradation 9..................... 10.................. 11. Construction of roads and bridges 12. Provision of urban amenities and facilities such as parks, gardens and playgrounds 13. Promotion of cultural, educational and aesthetic aspects 14....................... 15....................... 16........................ ....
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.... 27. Welfare of the weaker sections, and in particular, of the Scheduled Castes and the Scheduled Tribes. 28. Public distribution system. 29. Maintenance of community assets.] 5.5.19 The Smart Cities Mission is a vision of the Government of India to drive economic growth and improve the quality of life of people by enabling local area development and harnessing technology, especially technology that leads to Smart outcomes, area-based development which will transform existing areas, including slums, into better planned ones, thereby improving liveability of the whole City. In some cases, new areas to be developed around cities in order to accommodate the expanding population in urban areas. To fulfill the vision of the Government of India, Smart Cities are coming up in various States and the Pimpri Chinchwad Smart City is one such project for which PCSCL has been formed with the support of the Government of Maharashtra also. 5.5.20 However, in the instant case, it is clearly seen that even though the pure service (renting of immovable property services) is provided to PCSCL, a Government Entity, the said service, per se, cannot be considered as an activi....