TaxTMI 
TaxTMI 
2024 (7) TMI 154
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....rred to CGST Act and APGST Act respectively) by M/s. Greater Visakhapatnam Smart City Corporation Limited (hereinafter referred to as applicant), registered under the AP Goods & Services Tax Act, 2017. 3. Brief Facts of the case: 1. M/s. Greater Visakhapatnam Smart City Corporation Limited, (Hereinafter referred to as "applicant") It is a limited company incorporated under the Companies Act, 2013 at the city level, in which the state and the urban local body (GVMC) are the promoters with 50:50 equity share holding as per G.O.MS.No.43 2. In June 2015, the Government of India ("GOI") initiated "Smart City Mission", as a part of which Special Purpose Vehicles ("SPV") are created. The SPVs will Plan, appraise, approve, release funds, implement, manage, operate, monitor and evaluate the Smart City development projects. Each Smart City will have a SPV which will be headed by a full time CEO and have nominees of Central Government, State Government and Urban Local Bodies ("ULB") on its Board. d. GVSCCL is one of such Special Purpose Vehicles (SPV). 3. The Vizag (Visakhapatnam) Municipality was set up as early as in 1858. The Vizag (Visakhapatnam) Municipality was formed in ord....
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.... for development and further operations. 7. In line with G O Rt No 546 dated 26-07-2017 issued by the Municipal Administration & Urban Development Department, Go AP, a TRIPARTITE AGREEMENT FOR THE SUPPLY OF BULK WATER TO HPCL had been executed on 29th March, 2019 between GVSCCL, and HPCL in which the parties agreed that the rights and obligations of GVMC Under the Executed Agreements shall stand transferred and novated in favour of GVSCCL pursuant to this Agreement and that GVSCCL shall undertake, comply with and perform the said obligations of GVMC under the Executed Agreements. 8. Post novation of the rights and obligations of GVMC in favour of GVSCCL pursuant to current agreement, the Parties now agree to the following revised understanding in relation to the supply of water to HPCL: i. Instead of clear water supply from GVMC as per the Previously Executed Agreements, HPCL has agreed to accept 36.2 LIGD (16 46 MLD) of Product from GVSCCL, which GVSCCL shall supply to HPCL at the rate of Rs. 57/- per KL (inclusive of all taxes & charges as applicable). Cost to HPCL for the Product will be only Rs 57/- per KL (all inclusive). ii. In addition to the above, H....
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....desh]. Similarly, levy and collection of IGST are governed by Integrated Goods and Services Act, 2017 (hereinafter referred to as the 'IGST Act'). Hereinafter, the reference to CGST Act, 2017 or CGST Rules, 2017 may be considered as a reference to APGST Act, 2017 or AP GST rules, 2017 or IGST Act, 2017 also as it contains similar provisions 2. Applicant understands that the activity undertaken by Applicant falls within the scope of the 'supply' as defined under Section 7 of CGST Act, 2017 (which was made applicable to IGST) and also under Section 7 of AP GST Act, 2017. 3. Notification No. 1/2017-C.T (Rate) dt. 28 06.2017 was issued to prescribe rare of tax under the CGST Act. Similar notifications are also issued under the SGST and IGST Acts for prescribing rate of tax on supply of goods and services under relevant Acts. Entry relating to water was notified in Schedule Ill of the Notification at Serial No. 24. The entry in notification is reproduced below: S.No Chapter /Heading/Sub-heading /Tariff item Description of Goods Rate % (1) (2) (3) (4) 24 2201 Waters, including natural or artificial mineral waters and aerated waters, not containing a....
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....ading/Tariff item Description of Goods Rate % (1) (2) (3) (4) 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 Government 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 Nil 8. We also rely on the Government Clarification that its intention of not levying GST on the supply of general-purpose water by way of issuance of the CBIC Circular No. 52/26/2018 dated 09 August 2018, wherein it has been clarified that supply of drinking water, for public purposes, if not supplied in sealed containers, is exempted from GST 9. Thus, by applying the canon of "purposive construction", which gives effect to the legislative purpose/intendment, applicant is of the view that the Treated water supplied by it to HPCL for Industrial purpose is eligible for exemption under the relevant entry at SI. No. 99 of the exemption notificatio....
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....IGD of clear water by GVMC from its Thatipudi Source to HPCL for use of 14 LIGD at its Visakh Refinery and 1 LIGD at its Waltair Park Housing Complex. The applicant is total quantity agreed to be supplied by GVMC to HPCL under the aforesaid Agreements is 45 LIGD (20.46 MLD). In terms of these Executed Agreements, GVMC is already supplying 45 LIGD (20.46 MLD) of the clear water to HPCL. However, going forward, once the project Facility is operational, GVSCCL shall supply 36.2 LIGD (16.46 MLD) of Recycled (treated) water (hereinafter referred to as the Product) which shall replace 36.2 LIGD (16.46 MLD) of clear water being supplied by GVMC presently and GVMC shall continue to supply only 8.8 LIGD (4 (MLD) of clear water to HPCL. The applicant has raised a specific questions asked about such 'treated water' which is the forward supply of the applicant. We find that 'water' is covered under Chapter heading 2201 of GST Tariff. We also find that there are two schedule entries for 'water' under Chapter heading 2201 under the CGST Act. The first entry no. 99 of the Notification No. 02/2017 Central Tax (Rate), Dt. 28-06-2017 which is an exemption notification. The second is Entry No. ....
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....at that point of time. The price of the Product at any point of time shall be the with respect to Supply Price of Clear Water. b) Supply by GVMC (Clear Water) • The Supply Price of Clear Water to be supplied by GVMC to HPCL shall be. Calculated at the rate of Rs. 60/- per KL or at such rate as may be applicable from time to time. • HPCL will be charged for at least for 60% of the Contracted Quantity of Clear Water per month if the Contracted Quantity of Clear Water consumed in a month is less than 60% of Contracted Quantity of Clear Water. • HPCL will be charged for actual quantity of Clear Water consumed in a month if it varies between 60% and 100% of Contracted Quantity of Clear Water, reckoned per month at the rate of Rs. 60/- per KL or at such rate as may be applicable from time to time. • HPCL will be charged for additional Clear Water quantity consumed, over and above the Contracted Quantity of Clear Water, reckoned per month at the rate of Rs. 120/- per KL. • HPCL will be charged for actual consumption of Clear Water even though it is less than the 60% of Contracted Quantity of Clear Water reckoned per month....