AI Drafter 
TaxTMI 
TaxTMI 
2025 (2) TMI 298
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....18. 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 submits that it is a Public Sector Undertaking Company of Government of West Bengal. It basically works as Nodal Agency of Government of West Bengal regarding Development of Information Technology Infrastructure, E-governance and maintenance thereof for various Departments of Government of West Bengal and PSUs. The Company collects orders from various Government organizations and appoint third party vendors, back-to-back contract basis and it basically earned a margin for maintaining its Administration and Supervision charges. 1.....
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....c. The applicant was engaged in this project to supply data entry operator & junior engineer (System Administrator, Software Support Personnel). 2.2 The applicant submits that as per entry no 3 of the Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017, as amended, '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 of the Constitution' is exempted from payment of tax, However, the nature of service provided by him do not have any direct nexus 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. Hence provision of such manpower services is liable to tax at 18 per cent (9 per cent CGST and 9 per cent WBGST). 2.3 The applicant has drawn attention to a memo issued by the Directo....
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....l husbandry, dairying and poultry. 5. Fisheries. 6. Social forestry and farm forestry. 7. Minor forest produce. 8. Small scale industries, including food processing industries. 9. Khadi, village and cottage industries. 10. Rural housing. 11. Drinking water. 12. Fuel and fodder. 13. Roads, culverts, bridges, ferries, waterways and other means of communication. 14. Rural electrification, including distribution of electricity. 15. Non-conventional energy sources. 16. Poverty alleviation programme. 17. Education, including primary and secondary schools. 18. Technical training and vocational education. 19. Adult and non-formal education. 20. Libraries. 21. Cultural activities. 22. Markets and fairs. 23. Health and sanitation, including hospitals, primary health centres and dispensaries. 24. Family welfare. 25. Women and child development. 26. Social welfare, including welfare of the handicapped and mentally retarded. 27. Welfare of the weaker sections, and in particular, of the Sched....
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....tion apart from the ones already mentioned above. Since, the applicant providing data entry operators and Junior System Engineers and their services were never covered under Entry 3 or Entry 3A as provided above. Hence it can be concluded that these manpower services are not provided 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. Hence provision of such manpower services is liable to tax at 18% (9% CGST and 9% WBGST). 2.8 The applicant submits that by virtue of amendment in Notification No. 16/2021-Central Tax (Rate) dated 18th November, 2021 and corresponding WBGST Notification No. 38-F.T. dated 10th January, 2021 the words 'or a Government Authority or a Government Entity' came to be omitted from Sr. 3 & 4 from the Notification No. 12/2017-State Tax rate vide No. 1136-F.T. 28th June, 2017. Accordingly, it is stated that since the Public Health Engineering (PHE) is a Government Authority, the benefit of exemption under Notification 12/2017-Central Tax (Rate) dated 28.06.2017, as amended, is not applicable in his c....
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....on on Supply of Services where time of supply is on or after 01.01.2022. After considering all the aforesaid facts, provision of law, issue and decision therein, we have no hesitant in holding the 'Technical Consultancy for Project Development and Management Support Service', provided by the applicant to the MJP for its Water Supply Scheme where time of supply is on or after 01.01.2022, are not covered by the entry at Sl No. 3 of the Notification No. 12/2017-Central Tax (Rate), dated 28th June, 2017. As the words 'or a Government Authority or a Government Entity', are omitted from the aforesaid Entry at Sl. No.3'. 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 representatives of the applicant during the course of personal hearing. 4.2 We find from the documents produced before us that the applicant is engaged in the project of Water Supply Scheme for the benefit of the general public by Public Health Engineering Department (PHE) to supply co....
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.... by the PHE to the applicant for rendering manpower services to them for JJM project. Now, in order to decide whether the services provided by the applicant are eligible for exemption under serial number 3 of the Notification supra, we need to ascertain whether all the following factors get satisfied in the instant case: (i) whether the instant supply of services can be regarded as pure services; (ii) whether the applicant provides services to the Central Government, State Government or Union Territory or local authority; and (iii) whether the said services are in relation to any function entrusted to a Panchayat under article 243G or to a municipality under article 243W of the Constitution of India. 4.7 The term 'pure services' has not been defined under the GST Act. However, a bare reading of the description of services as specified in entry serial number 3 of the Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017, as amended, denotes supply of services which does not involve any supply of goods can be regarded as pure services. The applicant has submitted that as per the work order issued to him by PHE, he provides manpower services of 583....
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....nvisioned to provide safe and adequate drinking water through individual household tap connections by 2024 to all households in rural India. The programme will also implement source sustainability measures as mandatory elements, such as recharge and reuse through grey water management, water conservation, rain water harvesting." The functions entrusted to a Panchayat or to a municipality as listed in the Eleventh and/or Twelfth Schedule includes the functions like drinking water or water supply for domestic, industrial and commercial purposes. Thus, the services as provided by the applicant for supply of data entry operator & junior engineer (System Administrator, Software Support Personnel) throughout the West Bengal in connection with JJM is found to be covered by the subject matter as listed in the Eleventh and/or Twelfth Schedule thereby can be regarded as a supply in relation to functions entrusted to a Panchayat under article 243G and/or to a municipality under article 243W of the Constitution of India. 4.12 The applicant contends that supply of data entry operator & junior engineer (System Administrator, Software Support Personnel) to the Public Health Engineering Departm....