TaxTMI 
TaxTMI 
2023 (3) TMI 1250
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....ect to any goods and/or services or both amounts to or results in a supply of goods and/or services or both, within the meaning of that term. Proviso with reference to the Section 98(2) of CGST Act, 2017 states that where the questions raised in the application is already pending or decided in any proceedings in the case of the applicant under any provision of this Act, the application may be rejected by the Advance Ruling Authority after providing an opportunity of being heard to the applicant. And in this case, the applicant has undertaken in form ARA-01 that the issue is neither pending nor decided in any proceedings under any of the provisions of the Act. Besides the applicable fees in the case has also been deposited. So, he is eligible to seek an Advance Ruling under the above provisions and the case is being heard on merits. Statement of facts as per ARA-01 The applicant is a registered taxpayer under CGST Act, 2017 with GSTIN no. 06AACCB4891M1ZB. They are providing maintenance of Data base, spot billing, meter reading and bill distribution services to the Municipal Corporation, Gurugram for water supply and sewarge connections. A person is deputed area wise and pro....
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.... 7. Metering 8. Collection and Reconciliation 9. Consumer Information system 10. Disconnection and Reconnecting Management 12. Mobile Device management system 13. Mobile App (Spot Billing), Consumer Mobile App Bill generation module is the core module of the system to read the data from master file and all relevant transaction data of a particular consumer. It calculates process and generate bill of each consumer as per the defined rules. Bill can also be generated in a batch mode for sub division and cycle wise. Comprehensive MIS Various types of MIS reports can be generated to cater the need of top level officers of accounts department of MCG. The list of some of the important MIS reports is as follows:- 1. Revenue assessment and realization during the year for water and Sewerage charges, fixed charge, meter reading, interest on outstanding dues, rebate charges, dues, other charges, outstanding of last month and total outstanding. 2. Revenue collection details category wise having total Consumers, total Billed Consumers, water Sales in units of previous and current year. 3. Outstanding reven....
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....ed the case in person before the authority. He explained the nature of services in detail. Further the authority has sought a detail write up on the issue at hand i.e. scope of work and he has also sent a video clip regarding the execution of the water billing system by his employees to the consumers. Whereas the Jurisdictional officer has submitted her comments in writing and stated that the said services may be considered as pure services. DISCUSSION AND FINDING: The case is being perused in detail by the authority. It is observed that in the present matter the water distribution system is under the control of Municipal Corporation, Gurugram. The function of water supply to the public at large has been entrusted to MCG by the Government of Haryana. In the notification no. 12/2017 dated 28.06.2022 nil rate of tax is applicable on pure services provided to the Local Authority by way of any activity in relation to any function entrusted to a municipality under article 243 W of the Constitution of India. The functions are listed in the 12th Schedule of the Constitution (Under Article 243 W). In the present matter, MCG has further sought services related to activities of design ....
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...., or for the inducement of, the supply of goods or services or both, whether by the recipient or by any other person but shall not include any subsidy given by the Central Government or a State Government: Provided that a deposit given in respect of the supply of goods or services or both shall not be considered as payment made for such supply unless the supplier applies such deposit as consideration for the said supply; Section 2(47) "exempt supply" means supply of any goods or services or both which attracts nil rate of tax or which may be wholly exempt from tax under section 11, or under section 6 of the Integrated Goods and Services Tax Act, and includes non-taxable supply; Section 2(105) "supplier" in relation to any goods or services or both, shall mean the person supplying the said goods or services or both and shall include an agent acting as such on behalf of such supplier in relation to the goods or services or both supplied; Section-7 Scope of supply.- (1) For the purposes of this Act, the expression "supply" includes,- (a) all forms of supply of goods or services or both such as sale, transfer, barter, exchange, licence, rental, lease....
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....urugram renders to the Public at large is exempted but all the services which are received/availed by the MCG is not covered under the exemption notification no. 12/2017 dated 28.06.2017. The nature of services rendered by the applicant is like a software tool operated by its staff. The said services include creation and maintenance of data base of the consumers and the web based spot billing and collection of payments on behalf of Municipal Corporation. These services cannot be termed as pure services as defined under the provisions of the GST Act, 2017. So, these are not covered in the clause 5 of 12th Schedule i.e. water supply for domestic, industrial and commercial purposes. This function of water supply has been entrusted to a Municipality under Article 243W of the Constitution of India and these services provided by the applicant to the MCG are not in relation to the water distribution system per se. Water supply system necessarily requires procurement, transmission and supply of water to the consumers and meter installation but these functions are being done by the MCG. Whereas the applicant has provided the software services along with manpower to the MCG for the sup....