TaxTMI 
TaxTMI 
2024 (7) TMI 519
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....return filing to Bangalore Water Supply & Sewerage Board(hereinafter referred as BWSSB). 3. The applicant has sought advance ruling in respect of the following question:- 1. Whether the professional services for assistance in filing of corporate tax returns provided to BWSSB is an exempt supply as referred in SI No. 3 (chapter 99) of table mentioned in Notification 12/2017-Central Tax (Rate) dated 28 June 2017? 4. Admissibility of the application: The question is about the "determination of the liability to pay tax on any goods or services or both" and hence is admissible under Section 97 (2) (e) of the CGST Act 2017. 5. Brief Facts of The Case: The applicant has furnished the following facts relevant to the issue: 5.1. The Applicant states that it is a Firm having its office at Ground, 1st and 4th Floor, 'A' Wing Divyasree Chambers #11, O Shaughnessy Road Langford Gardens, Bengaluru, 560025 and registered under Karnataka Goods and Services Tax Act, 2017 ('KGST Act') holding registration number 29AAEFE1763C2ZN. 5.2. The Applicant states that they are engaged in providing services in auditing, accounting and taxation. The Applicant has entered into an e....
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....ng of corporate tax return provided by the Applicant to BWSSB is exempt from GST as per Notification No. 12/2017-Central Tax (Rate) dated 28 June 2017 amended via Notification No. 16/2021-Central Tax (Rate) dated 28 November 2021. 6. Applicant's Interpretation of law: 6.1. Under the Central Goods and Services Tax Act, 2017 ('CGST Act, 2017), Notification No. 12/2017-Central Tax (Rate) dated 28 June 2017 amended vide Notification No. 16/2021-Central Tax (Rate) dated 18 November 2021 and Notification No. 13/2023-Central Tax (Rate) dated 19 October 2023 provides exemption for services provided to the Government or local authority or governmental authority for certain functions under the Constitution. 6.2 Relevant portion of Notification No. 12/2017-Central Tax (Rate) dated 28 June 2017, as amended vide Notification No. 16/2021-Central Tax (Rate) dated 18 November 2021 and Notification No. 13/2023-Central Tax (Rate) dated 19 October 2023 for interpretation reads as follows: Sl.No. Chapter, Section, Heading, Group or Service Code (Tariff) Description of Services Rate Condition (1) (2) (3) (4) (5) Chapter 99 Pure Services excluding w....
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....ing the work of maintenance of street lights in a Municipal area to an agency which involves apart from maintenance, replacement of defunct lights and other spares. In this case, the scope of the service involves maintenance work and supply of goods, which falls under the works contract services. The exemption is provided to services involves only supply of services and not for works contract services". 6.7. The above covers advisory services, as being provided by the Applicant to BWSSB. Accordingly, it can be said that professional services are in the nature of 'Pure Services'. 6.8. Hence, the services being provided by the Applicant amount to "Pure Services" and satisfy the first condition of the exemption. Second condition 6.9. Regarding the second condition, the entry provides that the services must be provided to the Central Government or State Government or Union Territory or Local Authority or a Governmental Authority. 6.10. The term "local authority" has been defined under Section 2 (69) of the CGST Act, 2017 as under:- "local authority" means- (a) a "Panchayat" as defined in clause (d) of article 243 of the Constitution; (b) a "Mun....
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.... PERSONAL HEARING/PROCEEDINGS HELD ON 27.05.2024 7. Sri Ravi Banthia & Chillakuru Chaitanya, Charted Accountant and duly authorized representatives of the applicant appeared for personal hearing proceedings and reiterated the facts narrated in their application. FINDINGS & DISCUSSION 8. At the outset we would like to make it clear that the provisions of CGST Act, 2017 and the KGST Act, 2017 are in pari-materia and have the same provisions in like matter and differ from each other only on a few specific provisions. Therefore, unless a mention is particularly made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the KGST Act. 9. We have considered the submissions made by the applicant in their application for advance ruling. We have also considered the issues involved on which advance ruling is sought by the applicant and the relevant facts along with the arguments made by their authorized representative and also their submissions made during the time of hearing. 10. The Applicant states that they are engaged in providing services in auditing, accounting and taxation. The Applicant states t....
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....e) of article 243P of the Constitution; (c) a Municipal Committee, a Zilla Parishad, a District Board, and any other authority legally entitled to, or entrusted by the Central Government or any State Government with the control or management of a municipal or local fund; (d) a Cantonment Board as defined in section 3 of the Cantonments Act, 2006 (41 of2006); (e) a Regional Council or a District Council constituted under the Sixth Schedule to the Constitution; (f) a Development Board constituted under article 371 8[and article 371J] of the Constitution; or (g) a Regional Council constituted under article 371A of the Constitution; 11.1 "Panchayat" is defined in clause (d) of article 243 of the Constitution. Clause (d) of Article 243 of the Indian Constitution reads as below:- 243. In this Part, unless the context otherwise requires,- (a) ".................................... (b) .................................... (c) .................................. (d) "Panchayat" means an institution (by whatever name called) of self-government constituted under article 243B, for the rural areas; ....
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....ection 3 of BWSSB Act 1964, all the members of BWSSB are appointed by the State Government. 11.4 BWSSB is also not a Municipal Committee or a Zilla Parishad or a District Board, since it is not vested with the control or management of a municipal or local fund. In view of the above, we can conclude that BWSSB is not Local Authority. 11.5 In view of the above, it is evident that BWSSB is neither State Government nor Local Authority and hence the first condition is not satisfied. 12. 243G-Powers, authority and responsibilities of Panchayats subject to the provisions of this Constitution the Legislature of a State may, by law, endow the Panchayats with such powers and authority and 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 rela....