TaxTMI 
TaxTMI 
2023 (2) TMI 1126
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.... Goods & Services Tax Act, 2017 (herein-after referred to as CGGST Act, 2017)] M/s Call Me Services, C-101/5, First floor, Tagore Nagar, Raipur-492001, Chhattisgarh(here in after referred to as the applicant) holding GSTIN-22ADEPB9688C1ZQ, has furnished and application dated 3.9.2022 in form ARA-01 under section 97 of the Chhattisgarh Goods & Services Tax Act, 2017 seeking advance ruling regarding GST exemption on the services provided in relation to maintenance of various colonies developed by CGHB and not handed over to the local authority by CGHB under SI. No. 3 of the Exemption Notification GST Notification No. 12/2017-Central Tax (Rate) dated 28/06/2017 as amended from time to time hereafter the applicant under their e-mail dated 20.9.2022 furnished the details of challans evidencing payment o; fees stipulated for obtaining an advance ruling under sub-section (1) of section 97 of CGST Act, 2017 read with Rule 104 of Central Goods and Service Tax Rules, 2017 in the manner specified in section 49 ibid. Thus, the application complete in all respect has been filed by the applicant on 20.9.2022. 2. Facts of the case:- 2.1 The Applicant herein is M/s Call Me Services, Prop ....
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....er Indian Constitution's Article 243W and Twelfth Schedule Services in relation to a function of Municipality. Hence exempt under SI. No. 3 of Notification No. 12/2017 dated 28/06/2017. 4. Personal Hearing: - Keeping with the established principles of natural justice, personal hearing in the matter was extended to the applicant in person, as requested by them and accordingly, Shri Alok Chopra CA and authorized representative of the Applicant, M/s Call Me Services, Prop Raj Kumar Bothra, attended the personal hearing in the matter before us on 31.10.2022. He submitted That they are seeking advance ruling as to Whether the services provided by them in relation to maintenance of various colonies developed by CGHB and not handed over to the local authority by CGHB are exempt under SI. No. 3 of the Exemption Notification GST Notification No. 12/2017-Central Tax (Rate) dated 28/06/2017 as amended from time to time. Further that they have been awarded a contract by Chhattisgarh Housing Board (CGHB) for providing services in relation to maintenance of various colonies developed by Chhattisgarh Housing Board at Atal Nagar, Naya Raipur and not handed over to the local authority for....
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....the meaning of that term. Further section 103 of CGST Act, 2017 stipulates about the ruling pronounced as under: -The advance ruling pronounced by the Authority or the Appellate Authority under this Chapter shall be binding only - a. On the applicant who had sought it in respect of any matter referred to in sub-section (2) of section 97 for advance ruling; b. On the concerned officer or the jurisdictional officer in respect of the applicant. Thus, in view of the above section 103 of CGST Act, 2017, the ruling so sought by the applicant would be binding only on the applicant and on the concerned officer or the jurisdictional officer as stipulated above. 7. We have gone through the submissions made by the applicant and have examined the contentions raised by them. At the outset, we find that the issue raised in the application is squarely covered under Section 97(2) (b) of the CGST Act 2017 being a matter related to applicability of a notification issued under the provisions of this Act. We, therefore, admit the application for consideration on merits. 7.1 The jurisdictional Assistant Commissioner, State Tax Raipur Circle-06 in his reply C.No. /AC/HC/202....
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.... Naya Raipur comes under Indian Constitution's Article 243W and Twelfth Schedule Services in relation to a function of Municipality and hence exempt under SI. No. 3 of Notification No. 12/2017 Central Tax (Rate)dated 28/06/201 7. 8.1 For ease of reference, the relevant portion of GST Notification No. 12/2017-Central Tax (Rate) dated 28 June 2017 as amended by Notification No. 16/2021 -Central Tax (Rate)New Delhi, 18lhNovember 2021 effective from 1st of January 2022 is reproduced here under: - Government of India Ministry of Finance (Department of Revenue) Notification No. 12/2017- Central Tax (Rate) New Delhi, the 28^thJune, 2017 In exercise of the powers conferred by sub-section (1) of section 11 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby exempts the intra-State supply of services of description as specified in column (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 spe....
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....resaid context, it is seen that the phrase "pure services" has not been specifically defined in the CGST Act, 2017, however in common parlance any supply which is either deemed as supply of services under Schedule II of CGST Act, 2017 and which is not covered under the definition of "goods" shall be categorized as "pure services". The applicant has in their application informed that they have been awarded a contract by Chhattisgarh Housing Board (CGHB) for providing services in relation to maintenance of various colonies developed by Chhattisgarh Housing Board at Atal Nagar, Naya Raipur. Thus, the aforesaid activities can be categorized as "pure services" subject to the adherence of the exclusions mentioned therein in the notification viz. the same is not works contract service and other composite supplies involving supply of goods. This authority also finds on perusal of the copy of the documents furnished by the applicant relating to said tender notice issued by Chhattisgarh Housing Board (CGHB) that the said tender was for maintenance work for various colonies of CGHB. Further for the said provision of services, the applicant is supposed to provide related items / goods like ID ....
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....ipal or local fund; (d) a Cantonment Board as defined in section 3 of the Cantonments Act, 2006; (e) a Regional Council or a District Council constituted under the Sixth Schedule to the Constitution; (f) a Development Board constituted under article 371 of the Constitution; or (g) a Regional Council constituted under article 371A of the Constitution; As per Para2(zf) of the Notification No. 12/2017-CT(Rate), dated. 28.06.2017, "Government Authority "means an 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% or more participants by way of equity or control, to carry out any function entrusted to a Municipality under Article 243W of the Constitution or to a Panchayat under Article 243G of the Constitution. As per Para2(zfa) of the Notification NO. 12/2017-CT(Rate), dated. 28.06.2017, "Government Entity "means an authority or a board or any other body including a society, - (i). Set up by an Act of Parliament or a State Legislature, or (ii). Established by any Government, with 90% or more participants by way ....
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.... can at best be covered under the definition of "Government Authority" or "Government Entity". However, the benefit of exemption to both "Government Authority" and "Government Entity" has been withdrawn with effect from 1st of January 2022 vide Notification no. 16/2021-Central Tax (Rate) dated 18.11.2021. 9.2.3 As per FAQ's issued on "Government Services" by Directorate General of Taxpayer Services:- Question 5: Are all local bodies constituted by a State or Central Law regarded as local authorities for the purposes of the GST Acts? Answer: No. The definition of 'local authority' is very specific and means only those bodies which are mentioned as 'local authorities' in clause (69) of section 2 of the CGST Act, 2017. It would not include other bodies which are merely described as a 'local body' by virtue of a local law. For example, State Governments have setup local developmental authorities to undertake developmental works like infrastructure, housing, residential & commercial development, construction of houses, etc. The Governments setup these authorities under the Town and Planning Act. Examples of such developmental aut....
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....using Board (CGHB) does not fall in the specified category of "Government", or "local authority" as defined above. The much important second criterion of the service recipient being "Government" or "Local authority, for availing the benefit stipulated therein as provided under Notification No. 12/2017-Central Tax (Rate) dated 28 June 2017 as amended by Notification No. 16/2021 -Central Tax (Rate) dated 17.11.2021 effective from 1.1.2022, stands unfulfilled by the applicant. 9.3 The third decisive condition to be verified is whether the services provided by the applicant are 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 For better appreciation, the functions entrusted to the panchayats under Article 243G of the Constitution of India are reproduced herein below:- 1. Agriculture, including agricultural extension. 2. Land improvement, implementation of land reforms, land consolidation and soil conservation. 3. Minor irrigation, water management and watershed development. 4. Animal husbandry....
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....e 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. The applicant is of the view that they are exempt from the liability of GST in terms of clause 3 of the Notification No 12/201 7 supra, as they are providing services which are activities in relation to functions entrusted to a Municipality under article 243W of the Constitution. Municipalities and Panchayats and other local authorities listed in Section 2(69) of the Central Goods and Services Tax act, 2017 carry out functions entrusted to them under articles 243W & 243G of the Constitution respectively. As discussed above, functions that may be entrusted to panchayats and municipalities are listed in Schedule 11 & 12 of the Constitution. Based on the work order furnished by the applicant, it is evident that the services in relation to maintenance of various colonies of Chhattisgarh Housing Board / provision of security guards can in no way be equated to the functions entrusted to a Panchayat unde....