TaxTMI 
TaxTMI 
2023 (1) TMI 576
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.... referred as "DUDA") which is District Level Agency of State Urban Development Agency (SUDA) and the Project Management Consultancy services ('PMC") under the Contract for PMAY would qualify as an activity in relation to function entrusted to Panchayat or Municipality under Article 243G or Article 243W respectively, of the Constitution of India? (2) If answer to first question is in affirmative then, whether such services provided by the applicant would qualify as Pure services (excluding works contract service or 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, as provided in serial number 3 of Notification No. 12/2017-Central Tax (Rate) dated 28 June, 2017, as amended (S. No. 3A) by Notification No. 2/2018- Central Tax (Rate) dated 25 January, 2018 issued under Central Goods and Services Tax Act, 2017 (CGST') and corresponding Notifications....
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....itation No. 708/01 /29/HFA/2016-17 dated 01-06-2017. (4) Pradhan Mantri Awas Yojna- The Housing for All (Ministry of Housing & Urban Poverty Alleviation Government of India) Mission for urban area is being implemented to provide central assistance to the implementing agencies through States and UTs for providing houses to all eligible families/ beneficiaries. Mission seeks to address the housing requirement of urban poor including slum dwellers and non-slum dwellers of Economic Weaker Section (EWS) of annual income up to Rs. 300000 and Lower Income Group (LIG) of Annual Income up to Rs. 300001 to Rs. 600000 by ensuring a pucca house to all eligible urban households by the year 2022, when Nation completes 75 years of its Independence through following programme verticals :- • Slum rehabilitations of slum dwellers with participation of private developers using land as a resource • Promotion of affordable housing for weaker section through credit linked subsidy • Affordable housing in partnership with Public and Private sectors • Subsidy for Beneficiary- Led individual house construction (5) District Urban Development Agency (D....
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....he benefit of the urban poor either directly or through other agencies engaged in this direction, whether private, public or cooperative, (d) To review the progress of the execution of these activities as well as effectiveness of the benefits directed towards the urban poor, (e) To set up or establish any specific service such as training facilities, infrastructural etc. in furtherance of the economic interest of the urban poor. (11) District Urban Development Agencies (DUDAs) have been established at the district level. DUDA as mentioned above is an organizational extension of SUDA in various Districts of Uttar Pradesh. DUDA works on same lines of objectives in a district on which SUDA works in the entire state of Uttar Pradesh. . As per the "Memorandum of Association of "District Urban Development Agency Gorakhpur", it's main objectives shall be- (a) To identify the urban poor in the District. (b) To draw up plans and formulate schemes for the upliftment of the urban poor in the District. (c) To implement schemes for the benefit of the urban poor either directly or through other agencies engaged in this direction, whether privat....
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....eport drawings, statements and documents necessary for obtaining the grant from the Government of India. B. Scope of Work under Project Management Consultancy (PMC)/Supervision Services:- • PMC will coordinate, execute and monitor the activities leading to the construction of approved DUs (Dwelling units) by Govt, of India. • All the activities till the completion of DUs will be taken care of by PMC. • PMC shall also administer the works by the beneficiaries and ensure that the agreement between the ULBs and beneficiaries whether related to quality or quantities of work are executed in accordance with its provisions. • PMC shall attach Beneficiaries to the project in PMAY-MIS and also upload Annexure 7A & 7C. • PMC shall execute all MIS related work of PMAY (U). • PMC will supervise the construction work to ensure adherence to the drawings, prescribed high standards of quality and timely completion of the project and verify and certify the progress of the work. • Preparation of Physical and Financial progress and shall submit to respective ULBs and DUDA. • Preparation of indiv....
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....ing a matter related to applicability of a notification issued under the provisions of this Act. (2) As per Constitution of India the text of Article 243G and 243W stands as follows- Functions entrusted to Panchayats as laid down under section 243G of the Constitution of India are:- "Subject to the provisions of this Constitution, the Legislature of a State may, by law, endow the Panchayats with such powers and authority as may be necessary to enable them to function as institutions of self-government and such law may contain provisions for the devolution of powers and responsibilities upon Panchayats at the appropriate level, subject to such conditions as may be specified therein, with respect to- (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 Schedule." Functions of Municipality as laid down under section 243W of the Constitution of India are:- "Subject to the provisions of this Constitution, the Legislature of a State may....
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....2/2017-Central Tax (Rate) dated 28 June, 2017 are as follows: Table S.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 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. NIL NIL (6) Going through the Scope of work under preparation of DPR and scope of work under PMC, this may be clearly opined that such services provided would qualify as "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 t....
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....) under the Contract for Pradhan Mantri Awas Yojna "PMAY". In the AAR Order No. 53 dated 11.02.2020, in the case of M/S Saryu Babu Engineer India Pvt. Ltd., Lucknow; Uttar Pradesh, the same two questions as raised here in this application were raised before the Authority for advance ruling "AAR". Answers to both the questions were given in affirmative by the AAR. (10) There also in similar matter full exemption was granted to M/s Rudhrabhishek Enterprises Limited, Noida, U.P. by Authority for advance ruling Uttar Pradesh, vide order no. 22 dated 25.01.2019. (11) Thus this has been established that based on the above Notification No. 12/2017 and 02/2018 issued under Central Tax (Rate), GST is exempt in the hands of applicant in case of DPR and PMCs provided to DUDA/SUDA. (12) Hence it is prayed before the Honorable Members of the Authority for advance ruling "AAR" to provide the rulings on the questions rose through this application to exempt the GST in the hands of applicant in case of DPR and PMCs provided to DUDA/SUDA. 7. The application for advance ruling was forwarded to the Jurisdictional GST Officer to offer his comments/views/verification report....
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....ontract service or 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 243 G of the Constitution or in relation to any function entrusted to a Municipality under article 243 W of the Constitution, as provided in serial number 3 of Notification No. 12/2017-Central Tax (Rate) dated 28 June, 2017, as amended (S. No. 3A) by Notification No. 2/2018- Central Tax (Rate) dated 25 January, 2018 issued under Central Goods and Services Tax Act, 2017 (CGST') and corresponding Notifications No. KA.N.I.-2-843/X1- 9 (47) / 17-UP. Act-1 - 2017 - Order - (10) - 2017 Lucknow, dated June 30, 2017 issued under Uttar Pradesh Goods and Service Tax Act, 2017 ('UPGST Act'), where the Project cost includes the cost of service rendered along with reimbursement of cost of procurement of goods for rendering such service, and, thus, be eligible for exemption from levy of CGST and UPGST, respectively. 12. We observe that-as per SI. No. 3 of Notification No. 12/2017-CT (Rate) dated 28.06.2017 &....
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....of UP. The said observation is further supported by the following Government Orders which is addressed to the Director, SUDA UP, Department for Urban Employment and Poverty Alleviation (available on www.shasnadesh.up.nic.in)- (i) No. 172/69-1 -10-75(Sa)/97 dated 26.02.2010 and No. 123/2021 /174/69-1 -21 -14(137)/12 dated 11.05.21 both regarding continuity of post in SUDA/DUDA UP. (ii) No. 595/69-1-10-14(27)/10 dated 24.05.2010 regarding declaration of property by the employees of SUDA/DUDA UP. In view of facts stated above, at least it can be established that SUDA falls under Government category. 16. The District Urban Development Agency is subordinate district level office of SUDA as such, DUDA also falls under Government category. As per the organizational structure of DUDA as available on the website upsuda.org, the District Magistrate of the district concerned will be the ex-officio chairman of DUDA. Project director and project officers are also appointed by the U.P. government. DUDA utilizes the fund which is released by the SUDA. 17. Further, as per website of Pradhan Mantri Awas Yojana-Housing for All (Urban), Ministry of Housing and Urban Affairs....
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....ction of land documents and consent letter from the beneficiaries • Data collection, Data verification and Data compilation • Inclusion of present status and proposed works of infrastructure details • MIS Entry • Key Stakeholder consultations • Preparation of Beneficiaries wise detailed Architectural/ Engineering designs, Drawings & Estimates for all sizes of plots • Project structuring under appropriate development and funding mechanism • Assistance in obtaining approvals from concerned agencies / departments • The Consultant shall incorporate all necessary data in reference to Slum Free City Plan in the DPR. • The DPR should be complete in all respects with all reports drawings, statements and document necessary for obtaining the grant from the Government of India. • The DPR shall be computer typed and printed and drawing should be in Auto Cad. c. Scope of work under Project Management Consultancy (PMC):- • • PMC will coordinate, execute and monitor the activities leading to the construction of approved DUs by Govt, o....
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....¢ PMC shall also apprise the beneficiaries of the progress and/or activities of the project on fortnightly/monthly basis. • Cash Flow Chart - Actual and Scheduled & Bar Chart-Actual and Scheduled • Status of Payment to beneficiaries • Photographs of various stages (Before Excavation, Foundation, Plinth level, Lintel Level & Completion) of DUs of each beneficiary • Geo tagging of constructions of all the stages • Visitors' Site Inspection • Settlement of all accounts of the beneficiaries with the ULBs • Provide project completions report/closure report which shall contain all technical and financial Information of the project. 21. After examining the agreement and scope of work, we are of the opinion that services mentioned in the contract would qualify as Pure Service (excluding works contract service or other composite supplies involving supply of any goods)" as provided in serial number 3 of Notification No. 12/2017- Central Tax (Rate) dated 28 June. 2017 issued under Central Goods and Services Tax Act, 2017 ('CGST') and corresponding Notifications No. KA.N.I.-2-843/X1- 9 ....