TaxTMI 
TaxTMI 
2024 (8) TMI 1373
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....Regulations, 2018. 1.1 At the outset, we would like to make it clear that the provisions of the Central Goods and Services Tax Act, 2017 (the CGST Act, for short) and the West Bengal Goods and Services Tax Act, 2017 (the WBGST Act, for short) have the same provisions in like matter except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the WBGST Act. Further to the earlier, henceforth for the purposes of these proceedings, the expression "GST Act" would mean the CGST Act and the WBGST Act both. 1.2 The applicant is awarded several contracts from different local bodies/municipalities for survey, design, drawing, estimate and preparation of comprehensive plan related to water supply schemes, undertaken by those local bodies/municipalities. 1.3 The applicant has made this application under sub section (1) of section 97 of the GST Act and the rules made there under seeking an advance ruling whether the works being undertaken by the applicant can be classified as 'Pure Service' as specified in serial number 3 of the Notificatio....
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.... g. Work Order for Preparation of Detailed Project Report for Implementation of AMRUT 2.0. under Municipal Council Budhar (Office of the Municipal Council Burhar District - Shahdol, Madhya Pradesh.) h. Work Order of Examination and analysis of water and submission of report for ASN, RNG, STN, BRR and CRJ stations to assess the water consumption, waste water generation pattern, complete water balance of the facilities, water saving opportunities, water used and conservation. (Eastern Railway, Asansol Division. Asansol) 2.2 The applicant submits that the supply in respect of the work orders mentioned as above is exempted from payment of tax in terms of entry number 3 of Notification No. 12/2017 - Central Tax (Rate) dated 28.06.2017, as amended, which reads as under: • 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 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 o....
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....f distribution pipe network & clear water rising using water gem or other appropriate software. • Preparation of cost estimate for distribution pipeline & rising main including permanent road restoration • Testing of water from existing DTW or other means and proposing the requisite number and their location to cater the demand for an interim measure until PHED supply treated water to the CWR. 2.5 The scope of work as survey, design, drawing, estimate and preparation of comprehensive ground water/surface based DPR for Ramjibonpur municipal Area is as under: • Agency to conduct data collection, validation as survey format • Survey and investigation and alignment for proposed water pipe line route survey work including contour using total station instrument & auto level machine for Taki municipal area covering the entire site shall be conducted in view of ground realities with geo reference collection of existing data which has been provided by the Urban Local Bodies & preparation of drawing after design of distribution pipe network & clear water rising using water gem or other appropriate software. • Preparation cos....
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.... to a municipality under article 243W of the Constitution of India. 4.3 The term 'pure services' has not been defined under the GST Act. However, a bare reading of the description of services as specified in serial number 3 of the Notification No. 12/2017 CT(R) dated 28.06.2017 [corresponding State Notification No. 1136 F.T. dated 28.06.2017] denotes that supply of services which does not involve any supply of goods can be regarded as pure services. The said entry, therefore, specifically excludes works contract services or other composite supplies involving supply of any goods since 'works contract' as defined in clause (119) of section 2 of the GST Act necessarily involves transfer of property in goods (whether as goods or in some other form). 4.4 The applicant has submitted that the scope of work as executed by him towards survey, design, drawing, estimate and preparation of detailed report in respect of water supply schemes in rural or municipalities areas, doesn't involve any supply of goods. In support of his submission, the applicant has submitted samples copies of five (5) work orders issued by the Taki Municipality, Ramjibonpur Municipality, Golaghat division of PHE,....
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.... rural water supply schemes in the state to ensure safe, adequate drinking water to every household with tap connection in the areas of the state. We are therefore of the view that supplies made by the applicant to MPJNM doesn't qualify to be supply made either to the State Government or to a local authority. 4.8 Atal Mission for Rejuvenation and Urban Transformation (AMRUT) is a development mission launched by Central Government with the focus to establish infrastructure that could ensure adequate robust sewage networks and water supply for urban transformation by implementing urban revival. In the state of West Bengal, activities under AMRUT project are supervised by Department of Urban Development and Municipal Affairs, Government of West Bengal. The applicant's supply under this project therefore qualifies as a supply to the State Government. 4.9 Now the issues left with us is to ascertain whether the said services are in relation to any functions entrusted to a Panchayat under article 243G or to a municipality under article 243W of the Constitution of India. The functions entrusted to a Panchayat and to a municipality under article 243G and 243W of the Constitution along....
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....d the Scheduled Tribes. 28. Public distribution system. 29. Maintenance of community assets.". 243W. Powers, authority and responsibilities of Municipalities, etc.- Subject to the provisions of this Constitution, the Legislature of a State may, by law, endow (a) the Municipalities with such powers and authority as maybe 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 Municipalities, subject to such conditions as maybe specified therein, with respect to (i) the preparation of plans for economic development and social justice; (ii) the performance of functions and the implementation of schemes as maybe entrusted to them including those in relation to the matters listed in the Twelfth Schedule; (b) the Committees with such powers and authority as maybe necessary to enable them to carry out the responsibilities conferred upon them including those in relation to the matters listed in the Twelfth Schedule. Twelfth Schedule [Article 243W of the Constitution (Seventy-Fourth Amendment) Act, 1992]: ....