TaxTMI 
TaxTMI 
2025 (5) TMI 1506
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....ce Ruling 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, related to Jal Jeevan Mission (JJM), from Public Health Engineering Directorate, Govt. of West Bengal (PHED). The contracts are of two types, one type of contract is for supply of service only and another type of contract for combined supply of goods and service. 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 in respect of following questions: (1) Whether the Cont....
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....on No. 12/2017-Central Tax (Rate) dated 28.06.2017. (4) If Answer to the Q2 is "No", Whether the Composite supply of goods and services be treated as supply of "Composite Supply" u/s 2 (30) of GST Act and the tax liability to be determined as exemption/rate applicable for principal supply. (5) If Answer to the Q4 is "Yes" i.e. composite supply u/s 2 (20) of CGST Act, which one shall be treated as "Principal Supply", Major item of Supply part or Service part for determination of rate for tax liability. 1.4 The aforesaid questions on which the advance ruling is sought for are found to be covered under clause (a) and (b) of sub-section (2) of section 97 of the GST Act. 1.5 The applicant states that the questions raised in the application have neither been decided by nor are pending before any authority under any provision of the GST Act. 1.6 The officer concerned from the Revenue has raised no objection to the admission of the application. 1.7 The application is, therefore, admitted. 2.Submission of the Applicant 2.1. The applicant is awarded several contracts, related to Jal Jeevan Mission (JJM), from Public Health Engineering Directorate, Govt. of....
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.... No. 2789/RS dated 06.11.2024). (g) Work order for Conceptualization, design, implementation of community sensitization /mobilization activities using various mediums on JJM through Tableau, Bus Panel advertisement, organizing school level awareness programme, designing, printing & supply of 6 types of IEC leaflets and design on JJM, provision on legal provision damage or illegal connection of PWSS, safe handling & storage of safe water quality issues, water conservation and WASH related issues as per operational guideline of JJM and preparation of web based Digital (A/V) training material (Bengali) at Howrah District. (Ref. Memo No. 799/HD dated 20.02.2024). (h) Work order for on-site assessment with sample collection & testing of AIRPs, CWPPs & Water ATM including supply & delivery of 7 New On-site Mobile Analysis System (OMAS) with 38352 consumables for testing Arsenic, Iron, Manganese & Residue Chlorine in addition to monitoring & processing data of AIRPs, CWPPs, Water ATM for precise analysis and evaluation of the plants and upload the data to the State Water Quality Dashboard segment hosted in PHE Web portal. (Ref. Memo No. 1582/RS dated 07.06.2024). ....
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....eping, upgradation and modification of Water Quality Dashboard. • Upgradation, modification & upkeeping of Mobile application and Desktop application for better utility and management. • Overall coordination, supervision and data management. • Monitoring & upkeeping of an SMS alert system. • Engagement of District Consultants for coordinating the work related to water quality monitoring. • Documentation and report submission periodically. • Conducting meetings involving Water Quality team to discuss short comings based on evolution report of each District Consultant, attending meetings at District Level and Headquarters and attending training programmes at District/Panchayat level. 2.4 Regular Annual Maintenance of Mobile Laboratory Van (MLV) • Providing lab technician, driver cum lab attendance. • Supply for fuel required for mobile van. • Supply of consumables for testing of 1000 samples w.r.t. parameters-Iron, Manganese, Fluoride, Arsenic, Total Hardness, Residual Chlorine, Total Coliform & Thermotolerant Coliform. 2.5 Regular preventive upkeep & calibration....
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....porting Staff and Reimbursable Expenditures for functioning of the DPMU. • Key Experts Technical team Leader cum Water Supply Engineers • Procurement cum Contract Management Specialist (Deputy Team Leader) • Project Management & Monitoring Specialist • Non-Key Experts IEC and Capacity Building Specialist • Data Analytics and MIS Specialist • Supporting Staff Data Entry Operator cum Office Assistant • Reimbursement of travelling/office expenses 2.7 Supply & distribution of portable multi-parameter water quality testing device (Field Test Kits and facilitating block level training/orientation program • Supply of Field Test Kits (FTK) to Facilitate Water Sources Testing at Gram Panchayat Level • Supply of bag for carrying Field Test Kits • Overall coordination and Logistical support for distribution of FTKs at Gram Panchayat Level in coordination with District Headquarters, time-to-time reporting on any update of the programme • Facilitate Field level (Gram Panchayat/ Block Level) Training for all FTK users Panchayat Level • Fac....
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....lls within 48 hrs. after receiving of complain. • Visits to various AIRPs where the OMAS are stationed across the Districts and repair non-functional OMAS & calibrate the same on quarterly basis. • All Regular or On-Call Details will be done through PHED Fault Booking System, controlled through PHED Water Quality Application. • Telephonic Registration of Complaint by concerned Executive Engineer or his representative of the respective District or Pump/Valve Operator of the respective AIRPs should also to be noted & acted upon by the agency. • The repairing job shall normally be done during working hours and in case of emergency, repairing job may have to be done beyond office hours. Prior arrangements through proper communication should be worked out in all cases by the servicing agencies. • Response time for attending non-functional OMAS should be not more than 48 hrs. after receiving message from the fault booking system of PHED. The machine to be made functional within 96 hrs. from receiving message through fault booking system of PHED and is to be reported in the PHED system. • As far as possibl....
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....pply and delivery of consumables for water quality monitoring through OMAS including packing and distribution to different laboratories and collection of sample testing as well as uploading of test result in State Water Quality Dashboard, (v) Supply of Spare Parts including Calibration & regular upkeep of OMAS and (vi) Conceptualization, design, implementation of community sensitization /mobilization activities using various mediums on JJM through Tableau, Bus Panel advertisement, organizing school level awareness programme, designing, printing & supply of IEC leaflets and design on JJM be construed as composite supply in which the value of supply of goods constitutes may or may not more than 25 per cent of the value of the said composite. Here the applicant, during the course of personal hearing, has added two more activities. They are: On-site assessment with sample collection & testing of AIRPs, CWPPs & water ATM including supply & delivery of seven new OMAS with consumables for testing Arsenic, Iron, Manganese & residue Chlorine in addition to monitoring and processing the data for precise analysis and evaluation of the plants and upload the data to the State Water Quality Dash....
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.... testing as well as uploading of test result in State Water Quality Dashboard are principal supply of services whereas supply of consumables are naturally bundled with the service and necessary for the service . Hence former is principal supply which is supply of service. (v) Annual Maintenance Contract for On-site Mobile Analysis System (OMAS) installed in AIRPs with supply of Spare Parts including Calibration. • • In this case annual maintenance contract for OMAS principal supply which is supply of service. (vi) Conceptualization, design, implementation of community sensitization /mobilization activities using various mediums on JJM through Tableau, Bus Panel advertisement, organizing school level awareness programme, designing, printing & supply of IEC leaflets and design on JJM. • • In this case the activities of conceptualization, design, advertisement etc. are construed as principal supply which is supply of service. 2..15 As the question pertains to serial No. 3 of the Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 as amended Notification No. 32/2017 - Central Tax (Rate) dated 12.10.2017, ....
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....on for supply of drinking water which function is entrusted to Panchayat under article 243G or to 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 includes in relation to the matters "Drinking Water" and "Water Supply to Domestics" respectively. 2.17 The question pertaining to composite supply not covered to No. 3A of the Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 are interpreted as per Section 2 (30) of the CGST Act, 2017, "composite supply" means a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof, which are naturally bundled and supplied conjunction with each other in the ordinary course of business, one of which is a principal supply; Illustration - Where goods are packed and transported with insurance, the supply of goods, packing materials, transport and insurance is a composite supply and supply of goods is a principal supply; As per Section 8 of the CGST Act, 2017 the tax liability o....
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....lls under category of "composite supply". (iii) Yes, if condition of Notification No. 2/2018 Central Tax (Rate) dated 05.01.2018 is fulfilled, the supply appears to be exempted from payment of tax but for that proportionate ITC should be reserved under rule 42/43 of the CGST Act, 2017. (iv) Not Applicable 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 personal hearing. We have also considered the submission made by the officer concerned from the revenue. 4.2 The applicant is stated to have been awarded several contracts related to Jal Jeevan Mission (JJM) from Public Health Engineering (in short PHE) Directorate, Government of West Bengal. The following work orders are claimed to have been received by the applicant from PHE Directorate. All the work orders are placed on records. 4.3 Work order for regular upkeeping, upgradation of all water quality applications for data collection, alert generation system for contaminated sources, stock & faulty instruments and onsite sanitary survey data, integrated with Water Quality Ma....
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....trict. Work order for on-site assessment with sample collection & testing of AIRPs, CWPPs & Water ATM including supply & delivery of 7 New On-site Mobile Analysis System (OMAS) with 38352 consumables for testing Arsenic, Iron, Manganese & Residue Chlorine in addition to monitoring & processing data of AIRPs, CWPPs, Water ATM for precise analysis and evaluation of the plants and upload the data to the State Water Quality Dashboard segment hosted in PHE Web portal. Work order for supply and delivery of consumables for Water Quality Monitoring through On-Site Mobile Analysis System (OMAS) for drinking water testing in Untouched Habitations Schools, Anganwadis, and Health Facilities throughout the state related to Water Quality Monitoring and Surveillance under JJM. The scope of the work includes packing of consumables, supply to different laboratories and collection of sample, testing & uploading of test result in State Water Quality Dashboard. Work order for regular upkeep and management of FTK mobile Application (Android Version) and Web Interface of Water Quality Data Integrated to State Water Quality Dashboard, Generating Results, Reports, Graph and Summary, Maintaining d....
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....wers, 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 as 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. Now the Eleventh Schedule contains the following entries in respect of Article 243G: 1. Agriculture, including agricultural extension. 2. Land improvement, implementation of land reforms, land consolidation and soil conservation. 3. Minor irrigation, water management and watershed development. 4. Animal husbandry, dairying and poultry. 5. Fisheries. 6. Social forestry and farm forestry. 7. M....
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.... 2. Regulation 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. 15. Cattle pounds; prevention of cruelty to animals. 16. Vital statistics including registration of births and deaths. 17. Public amenities including street lighting, parking lots, bus stops and public conveniences. 18. Regulation of slaughter houses and tanneries. Jal J....
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....ns for data collection, alert generation system and engagement of consultant for coordination appears not to have any supply of goods involved in them. Also the work orders for operation of water testing laboratories (without any supply of goods), engagement of consultancy agency for setting up of District Project Management Unit and regular upkeep and management of FTK mobile application and web Interface of Water Quality Integrated to State Water Quality Dashboard and maintaining database fall in the same bracket. As such, these services can be regarded as Pure Services and qualify for exemption under serial no. 3 of Notification No. 12/2017-Central Tax (Rate) Dated 28.06.2017, as amended on the following grounds: i) Those are Pure Services. ii) No works contract service or other composite supply involving supply of any goods is related to those works. iii) Those pure services are provided to the Government of West Bengal represented by PHE Directorate. iv) The specific activity of the services is in relation to function entrusted to a panchayat under Article 243G (serial no. 11 of the Eleventh Schedule) or to a municipality under Article 243W ....
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....supply of goods more than 25% in terms of value as per the relevant contracts. 4.10 Having said so, now we will determine the principal supply in each of the above cases individually. • In case of Annual maintenance of Mobile Laboratory Van (MLV in short) under Water Quality Monitoring and Surveillance Programme, with supply of consumables for the testing of water samples, the principal supply is the service of maintenance of MLV. • In case of Regular preventive upkeep & calibration of On-site Mobile Analysis System (in short OMAS) installed in various laboratories with supply of spare parts, the principal supply is the service of sample collection, testing and uploading data and monitoring and processing of such data. • Supply & distribution of portable multi-parameter water quality testing device and facilitating block level training/orientation program on testing, awareness generation etc. is a composite supply where the principal supply is that of Field Test Kits (in short FTK). • In respect of Supply and delivery of consumables for water quality monitoring through OMAS including packing and distribution to different labora....
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....value of goods supplied is more than 25% of the total value of the composite supply. These supplies will not surely come under serial no. 3 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 since they are not pure services. There is also no scope that they will come under Serial No. 3A of Notification No. 2/2018-Central Tax (Rate) dated 25.01.2018 since they are composite supplies involving supplies of goods more than 25% in terms of value of the total composite supplies as is evident from the respective contracts. • There is one particular supply as detailed in para 4.11 where the works order is related to supply of goods only. In view of the foregoing discussion, we rule as under: RULING Q1. Whether the Contract of Services for (i) Operation & maintenance, regular upkeeping, updradation of secure Server/Dashboard, water quality applications for data collection, alert generation system and engagement of consultant for coordination, (ii) Operation of water testing laboratories without any supply of goods, (iii) Engagement of consultancy agency for setting up of District Project Management Unit, (iv) Regular upkeep and management of FTK mobile app....
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....testing, smart phone with preloaded water quality app synchronized with PHED water quality dashboard and safety gear for resource personnel including external designing and painting for IEC propaganda with IEC audio visual aidsbe construed as composite supply. Answer: For segment (i) to (vi) as above, the answer is in affirmative. For the last segment (vii) the answer is that the supply is that of special purpose motor vehicle. This supply of goods will be covered by Entry No. 401A of Schedule III and will be taxed @ 9% CGST+9% SGST. Q3. If Answer to the Q2 is "Yes", Whether the 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 be exempted from payment of tax vide Serial number 3A of the Notification No. 2/2018-Central Tax (Rate) dated 25.01.2018 amendment to the mother Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017. Answer: Upon careful study of the related work orders, it is found that in each of the above composite supplies, the value of goods supplied is more than 25% of the total value of the relevant composite supply. As such they are not eligib....