TaxTMI 
TaxTMI 
2024 (11) TMI 1327
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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 herein provides works contract services to various State Governments, Central Government and Union Territories. The applicant has been rewarded work order by the Government of Manipur (Water Resources Department) (hereinafter referred to as "Govt.") for Development of Water Body/ Reservoir at Lamphelpat, Imphal West, Manipur, India. The applicant entered into contract with the State Government of Manipur (Water Resources Department) vide agreement no. "SE/IC-I/2-37/WB-AGR/2023-24/2 Dated 12/09/2023" for the execution ....
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....ated earth and Re-sectioning of Nambul stream from Hump bridge to Samushang Nalla. 2.3 The applicant submits that works contract, as defined in clause (119) of section 2 of the GST Act, is treated to be a supply of services under GST vide Para 6(a) Schedule II of the GST Act. The general rate of works contract services is 18%. However, in terms of entry no. 3A of Notification no. 9/2017 Integrated Tax (Rate) dated 28-06-2017, "composite supply of goods and services in which the value of supply of goods constitutes not more than 25 per cent of the value of the said composite supply 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 of the Constitution" is exempted from payment of tax. 2.4 The applicant submits that the scope of the work requires the reservoir at Lamphelpat to be maintained primarily to protect the city of Imphal for enhancing the sustainable water potential for supply of water in the Imphal city. As per Cambridge Dictionary, the ex....
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....g (AAR) made reference to Circular No. 51/25/2018-GST dated 31/07/2018 wherein the Central Government clarifies that the service tax exemption at serial No. 25(a) of Notification No. 25/2012 dated 20/06/2012 (hereinafter the ST Notification) has been substantially, although not in the same form, continued under GST vide SI No. 3 and 3A of the Exemption Notification. It was held that the above Circular leaves no doubt that the phrase 'in relation to any function', as applied to SI No. 3 or 3A above, makes no substantial difference between SI No. 25(a) of the ST Notification and SI No. 3 or 3A of the Exemption Notification. The AAR examined the applicant's eligibility to the exemption from three aspects: (1) whether the supply being made is pure service or a composite supply, where supply of goods does not exceed more than 25% of the value of the supply, (2) whether the recipient is government, local authority, governmental authority or a government entity, and (3) whether the supply is being made in relation to any function entrusted to a panchayat or a municipality under the Constitution. It was held that the recipient being the lrrigation and Waterways De....
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.... a Panchayat under Article 243G of the Constitution of India. It was held by the AAR that exemption under Sl. No. 3A of Notification No. 9/2017-Integrated Tax (Rate) dated 28/06/2017 as amended by Notification No. 2/2018 integrated Tax (Rate) dated 25/01/2018 would apply to the applicant's supply. 3. Submission of the Revenue 3.1 The concerned officer from the revenue has not expressed any view on the issue raised by the applicant. 4. Observations & Findings of the Authority 4.1 We have gone through the records of the issue as well as submissions made by the authorized representative of the applicant during personal hearing. 4.2 We find from the documents produced before us that the applicant has received a letter of acceptance from the Office of the Executive Engineer, Electrical and Mechanical Division, Water Resource Department, Government of Manipur in respect of a contract for execution of project of development of water body/reservoir at Lamphelpat, Imphat West, Maniput, India under the project name "Rejuvenation of Lamphelpat water body to alleviate urban flooding, providing sustainable water source for Imphal city and promoting eco tourism". 4.3 The app....
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....ions 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 with eleventh and twelfth schedule are reproduced herein under for ease of reference: 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 relation to the matters listed in the Eleventh Schedule Eleventh Schedule [Article 243G of the Constitution (Seventy-Third Amendment) Act, 1992]: 1. Agr....
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....o 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]: 1. Urban planning including town planning. 2. Planning of land-use and construction of buildings. 3. Planning for economic and social development. 4. Roads and bridges. 5. Water supply for domestic, industrial and commercial purposes. 6. Public health, sanitation conservancy and solid waste management. 7. Fire services. 8. Urban forestry, protection of the environment and promotion of ecological aspects. 9. Safeguarding the interests of weaker sections of society, including the handicapped and mentally retarded. 10. Slum improvement and upgradation. 11. Urban poverty alleviation. 12. Provision of urban amenities and facilities such as parks, gardens, playgrounds. 13. Promotion of cultural, educational and aesthetic aspects. 14. Burials and burial grounds; cremations, cremation grounds and electric crematoriums. ....
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....13 Climate Action, specifically target 13.1 (Strengthen resilience and adaptive capacity to climate related hazards and natural disasters in all countries). It could also directly contribute to the achievement of SDG 11 Sustainable cities and Communities, and SDG 6 Clean Water and Sanitation. 4.8 The contract document, as submitted by the applicant, also reveals that the project aims to alleviate urban flooding, providing sustainable water source for Imphal city and promoting eco-tourism. In this regard, we like to mention that we have come across different articles, reports on the internet in respect of instant project wherefrom it is learnt that Lamphalet, which is in the foothills of the Langol hill range, was a natural water reservoir and in the past it served as a reservoir, storing excess water of the Luwangli and Nambul rivers during monsoon. It was used to release water to the rivers during the lean season. The planned water body would store excess water from Nambul River and water collected from various sources and catchment areas would be further treated for use in water supply schemes. The waterbody at Lamphelpat that has a huge storage capacity of 124 million cubic m....