TaxTMI 
TaxTMI 
2022 (12) TMI 805
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....der the "GST Act". The applicant M/s Rajasthan Housing Board, Janpath, Bhagwandas Road, Jyoti Nagar, Jaipur (Rajasthan) (hereinafter the Applicant) being a registered person (GSTIN is 08AAALR0046F1ZA) as per the declaration given by him in Form (ARA-01) the issue raised by the applicant is neither pending for proceedings nor proceedings were passed by any authority. The Applicant has submitted the copy of application in Form GST ARA - 01 and also submitted a copy of Challan evidencing payment of application fees of Rs.5,000/- each under sub-rule (1) of Rule 104 of CGST rules 2017 and RGST Rules 2017. The appellant i.e M/s Rajasthan Housing Board, Janpath, Bhagwandas Road, Jyoti Nagar, Jaipur (Rajasthan) (Rajasthan) has raised the following question for advance ruling in the application for Advance Ruling filed by it. 1. Whether the Rajasthan Housing Board is covered under the definition of "Governmental Authority" as defined in clause (zf) Paragraph 2 vide notification no. 12/2017-Central Tax (Rate) dated 28.06.2017? 2. Whether the services provided by the Rajasthan Housing Board as governmental authority such as permission for building construction, approva....
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....) Secretary to Government, Town Planning Department, ex-Officio member: (c) Chief Town Planner and Architectural Adviser, ex-Officio member: (d) Housing Commissioner of the Board, ex-Officio member: and (e) Six non official members, appointed by the Government of whom one shall belong to the Scheduled Castes or Scheduled Tribes. (2) The names of the Chairman and other members appointed under sub-section (1) shall be published in the Official Gazette. (3) A non-official member of the Board may at any time resign his office by submitting his resignation to the State Government: Provided that the resignation shall not take effect until it is accepted by the Government (4) The State Government may, by notification in the Official Gazette, remove from office the Chairman or any other member who- (a) is, or has become, subject to any of the disqualifications mentioned in section 7, or (b) in the opinion of the State Government, has been guilty of any misconduct or neglect or has so flagrantly abused his position as to render his continuance as member detrimental to the interests thereof or of the general pub....
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....s the State Government to dissolve RHB by publishing a notification in official gazette to give effect to such dissolution. Moreover, pursuant to such dissolution, all properties, funds and dues vested in or realizable by the Board shall stand transferred to the State Government. RHB is formed for providing infrastructure of housing facility. Thus, the RHB is the instrumentality of the State Government and has been discharging the statutory functions assigned to it under the statute or those entrusted to it by the State Government. Objective and Mission of RHB 6. As per the Vision statement of RHB, it has been established with the objective to, inter alia: a) Ensure affordable housing in environmentally invigorating habitats with inclusive facilities especially for the economically weaker section, low and middle income groups and competitive price options for the other sections of the society. b) To plan and develop state of art townships at affordable price to all the section. c) To develop the townships with inclusive facilities which include modern amenities, community services, hospitals, educational institutes, neighborhood parks and playground....
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....hase, exchange or otherwise of any property necessary for or affected by the execution of the scheme: (b) the laying or re-laying out of any land comprised in the scheme: (c) the distribution or re-distribution of site belonging to owners of property comprised in the scheme; (d)the closure or demolition of dwellings or portions of dwellings unfit for human habitation; (e)the demolition of obstructive buildings or portions of buildings; (f) the construction and reconstruction of buildings; (g) the sale, letting or exchange of any property comprised in the scheme; (h) the construction and alteration of streets and back lanes: (i) the formation of a reconstituted plot by the alterations of the boundaries of an original plot: (j) the allotment of a plot to any owner dispossessed of his land in furtherance of the housing scheme: (k) the transfer of ownership of a plot from one person to another: (l) the reconstitution of two or more plots belonging to different persons into one plot without changing their boundaries and making them joint property with the consent of the owners of the origi....
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....p or service code Description of services Rate Condition 4. Chapter 99 Services by governmental authority by way of any activity in relation to any function entrusted to a municipality under article 243W of the constitution. Nil Nil Further, Section 11 (4) of Rajasthan Goods & Services Tax Act, 2017 provides that any notification issued by the Central Government, on the recommendations of the Council, under sub-section (1) of section 11 or order issued under sub-section (2) of the said section of the Central Goods and Services Tax Act shall be deemed to be a notification or, as the case may be, an order issued under this Act. 2. That above exemption entry has 2 parts:- (i) Services must be provided by "Governmental authority" (ii) That service should be in relation to any function entrusted to a municipality under Article 243W of the constitution. 3. That for condition no. (i) it is imperative to discuss the definition of "Governmental authority" which is defined in clause (zf) Paragraph 2 vide notification no. 12/2017- Central Tax (Rate) dated 28.06.2017, reproduced below for reference. - "Governmental Authority" means an....
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....nt. 7. Fire services. 8. Urban forestry, protection of the environment and promotion of ecological aspects. 9. Safeguarding the interests of weaker sections of society, including the handicapped and mentally retarded 10. Slum improvement and up gradation. 11. Urban poverty alleviation. 12. Provision of urban amenities and facilities such as parks, gardens, play grounds. 13. Promotion of cultural, educational and aesthetic aspects. 14. Burials and burial grounds; cremations, cremation grounds and electric crematoriums. 15. Cattle pounds; prevention of cruelty to animals. 16. Vital statistics including registration of births and deaths. 17. Public amenities including street lighting, parking lots, bus stops and public conveniences. 18. Regulation of slaughter houses and tanneries. 5. Thus, it is evident that RHB is constituted with the object of promoting affordable housing for the weaker sections of the society and for the up liftment of slums, inter alia and the said acts are also carried out to fulfill the duties of the State under the Constitution and more specifically u....
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...., water supply operation, garbage collection door to door and disposal, cleaning of colony i.e. garden, street and open area, drainage system, sewerage, water tank, cleaning of common area in multistoried building etc. and all other related work pertaining to operation and maintenance work was awarded pertaining to C.G. Housing Board Colony, Sector 29, Naya Raipur. The AAR after examining the nature of activities and Article 243W of the Constitution has held that the service supply to be provided by the applicant by their very nature appear to fall in the list of services enumerated under serial no. 5, 6, 8, 10, 12 and 17 of 12th schedule of Article 243W of the Indian Constitution and therefore the services has been held as exempt supply covered under Notification No 12/2017-State Tax (Rate). 8. In case of M/s. PDCOR Limited, the GST AAR Rajasthan has held that Jaipur Development Authority (JDA) is a 'Governmental Authority' and the Project Management Consulting Services (PMCs) provided by M/s PDCOR Ltd. to JDA for Rejuvenation of Amanishah Nallah (Dravyavati River), Jaipur awarded to them vide MOA dated: 01.09.2017 are covered under SI. No.3 of GST under Notification 12....
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.... with .90% or more participation by way of equity or control, to carry out any function entrusted to a municipality under article 243W of the Constitution." The Hon'ble High Court of Patna held as under: • The 'Governmental authority' as defined in the Notification dated January 30, 2014, means an authority or a board or any other body set up by an Act of Parliament or State Legislature; • The provisions contained in sub-clause (i) and sub-clause (ii) are independent dis-conjunctive provisions and the expression "90% or more participation by way of equity or control to carry out any function entrusted to a municipality under article 243W of the Constitution" is related to sub-clause (ii) alone, as the sub-clause (i) is followed by ';' and the word 'or'. Therefore, each of the sub-clauses is independent provision; • Thus, it means that when an authority is established by Government, then, it should have 90% or more participation by way of equity or control to carry out any function entrusted to a municipality under Article 243W of the Constitution to be eligible for exemption; • The Authority set up by an A....
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....6-2018 has directed RHB, JDA, other development authorities, municipalities, Nagar Nigam to charge for BSUP (Shelter) Fund for implementation of Affordable Housing Policy-2009. This order is equally applicable on RHB also as mentioned in the order itself. This also proves that for charging various amounts, RHB has been given power at par with JDA and Municipal authorities. Hence it is clear that the various services or functions of RHB such as granting permission for Building construction, approval of Building Map, permission for additional Floor Area Ratio, Services of Leasing of Land, betterment levy etc. is covered under the functions entrusted to a Municipality under Article 243W of the Constitution and therefore, exempt under GST under entry 4 of the exemption Notification no. 12/2017-CT(R)." C. Question(s) on which advance ruling is sought Q.1 Whether the Rajasthan Housing Board is covered under the definition of "Governmental Authority" as defined in clause (zf) Paragraph 2 vide notification no. 12/2017-Central Tax (Rate) dated 28.06.2017? Q.2 Whether the services provided by the Rajasthan Housing Board as governmental authority such as permission for building const....
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....than Housing Board as governmental authority such as permission for building construction, approval of map, permission of additional Floor Area Ratio, leasing of land etc. are exempt as per Notification no. 12/2017 CTR dated 28.06.2017 as amended from time to time, under entry specified at S.No. 4 of said notification? 3) We have gone through the judicial pronouncements of various judicial authority government authorities. We have also gone through the decisions of various courts submitted by applicant on dated 06.092022. Applicant also quoted the reference of Pre-GST regime, i.e Notification No. 25/2012-ST dated 20.06.2012. We found that none of pronouncement submitted by applicant in his favors squarely covers the present question of law in respect of questions on which advance ruling has been sought by applicant. 4) The Section 2(53) of the Central Goods and service Tax Act 2017 had defined the government "Government" means the Central Government; And sub-section 2(53) of the Rajasthan Goods and service Tax Act, 2017 provided that "Government" means the Government of Rajasthan; Further the "government Authority" is being defined in the clause (zf) of n....
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....c, industrial and commercial purposes. 6. Public health, sanitation conservancy and solid waste management. 7. Fire services. 8. Urban forestry, protection of the environment and promotion of ecological aspects. 9. Safeguarding the interests of weaker sections of society, including the handicapped and mentally retarded. 10. Slum improvement and up gradation. 11. Urban poverty alleviation. 12. Provision of urban amenities and facilities such as parks, gardens, play grounds. 13. Promotion of cultural, educational and aesthetic aspects. 14. Burials and burial grounds; cremations, cremation grounds and electric crematoriums. 15. Cattle pounds; prevention of cruelty to animals. 16. Vital statistics including registration of births and deaths. 17. Public amenities including street lighting, parking lots, bus stops and public conveniences. 18. Regulation of slaughter houses and tanneries. (ii) We found that the objectives and motto of RI-1B may be derived from section 25 of the RHB Act 1970, which reads as under: Section 26. Powers and duties of the Board ....
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....d comprised in the scheme: (c) the distribution or re-distribution of site belonging to owners of property comprised in the scheme; (d) the closure or demolition of dwellings or portions of dwellings unfit for human habitation; (e) the demolition of obstructive buildings or portions of buildings; (f) the construction and reconstruction of buildings; (g) the sale, letting or exchange of any property comprised in the scheme; (h) the construction and alteration of streets and back lanes: (i) the formation of a reconstituted plot by the alterations of the boundaries of an original plot: (j) the allotment of a plot to any owner dispossessed of his land in furtherance of the housing scheme: (k) the transfer of ownership of a plot from one person to another: (I) the reconstitution of two or more plots belonging to different persons into one plot without changing their boundaries and making them joint property with the consent of the owners of the original plots; (m) the provision of draining, water-supply and lighting of the area included in the scheme: (n) the provision of parks, p....
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....n (3) of the Table below from so much of the central tax leviable thereon under sub-section (1) of section 9 of the said Act, as is in excess of the said tax calculated at the rate as specified in the corresponding entry in column (4) of the Table, entry specified at S.No. 4 of said notification, reproduced below:- S.No. Chapter, Sec., Heading, group or service code Description of services Rate Condition 4. Chapter 99 Services by governmental authority by way of any activity in relation to any function entrusted to a municipality under article 243 W of the constitution. Nil Nil Further, Section 11(4) of Rajasthan Goods & Services Tax Act, 2017 provides that any notification issued by the Central Government, on the recommendations of the Council, under sub-section (1) of section 11 or order issued under sub-section (2) of the said section of the Central Goods and Services Tax Act shall be deemed to be a notification or, as the case may be, an order issued under this Act. 9) On the above basis, we come to the considered conclusion that the said services provided by the Rajasthan Housing Board (RHB) qualifies being placed under the category of servi....