TaxTMI 
TaxTMI 
TaxTMI 
2025 (6) TMI 918
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....to make it clear that the provisions of both the CGST Act and the MGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to any dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the MGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, the expression 'GST Act' would mean CGST Act and MGST Act. 1. FACTS AND CONTENTION - AS PER THE APPLICANT: 1.1. Assisting Municipal Corporation and municipal council for providing the property survey, numbering of properties, measurements and data collection. To evaluate the property taxation as per act. 1.2. Assisting Municipal Corporation and councils for computerization of property taxation data along with computerization of plans and linking photos of the properties and data along with computerization of plans and linking of the properties. 1.3. Assisting municipal councils and corporation for providing GIS-based mapping technology, techniques and drone image capturing services along with GIS based data management system and for logical mapping survey, special information, technology or any other envi....
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....y, # ↓ Assisting municipal councils and corporation for providing conduct survey and allot the new numbers for old as well as new properties as per ward/ prabhag boundaries as directed by the Government Authority(r) ↓ The company shall note any changes in the Name of Occupier, Floor wise gradation of property, prepare the single line site plan showing all room sizes, floor, toilets, staircase, sign of owner, etc. of all properties. ## ↓ The fresh data collected by the company shall be used for correction and computerization of updated site plan. ↓ Assisting municipal councils and corporation for providing in preparation of GIS based tax zone map for tax assessment as directed by Chief Officer, preparation of database for assessment of taxes, submission of draft assessment list and case papers to Government Authority for verification and correction of mistakes. ↓ Assisting municipal councils and corporation for providing Property case papers, primary tax assessment list, providing individual notices of taxes, 2% Spot inspection and correction of lists given during hearings, providing final assessment of lists. ↓ # Old data includes Name of ....
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.... W of the Indian Constitution, we iterate the following :- Article 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 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 Municipalities, subject to such conditions as may be 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 may be entrusted to them including those in relation to the matters listed in the Twelfth Schedule; (b) the Committees with such powers and authority as may be necessary to enable them to carry out the responsibilities conferred upon them including those in relation to the matters listed in the Twelfth Schedule. Now, the 12th Schedule of the Indian Constitution enumerates the following activities, a) Urban planning including town planning. b) Regulation of land-use and construction of bui....
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.... The term urban planning refers to the attempt to control the character and location of housing, industry, and recreational developments according to a preconceived pattern or design. Such designs are thought necessary in the context of urban development because of the externalities or third-party effects associated with the close contiguity of urban life. In densely populated areas, for example, the location of major industrial developments close to the places in which people live may result in objectionable pollution. Urban planning is considered necessary to ensure the appropriate separation of different land uses in order to improve the quality of urban life. As per Oxford Dictionary The term urban planning refers to the planning and regulation of building, development, reconstruction, etc., in an urban area. As per Oxford Dictionary Town planning is the planning and design of all the new buildings, roads, and parks in a place in order to make them attractive and convenient for the people who live there. As per Encyclopaedia Land-use planning is the process of regulating the use of land in an effort to promote more desirable social and environmental outcomes as wel....
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....thority certifying that the development charges as leviable. Under this Act has been paid or that no such developmental charge are leviable. h. Permission of development Any person or body intending to carry out any development on any land shall make an application in writing to the planning and development authority for permission. Authorities may grant permission or pass order either with some certain condition or without imposing any condition or they can refuse permission 1.9. Land Pooling Scheme: The planning and development authority should prepare one or more land pooling scheme for any part of area within its jurisdiction for the purpose of implementing the proposals contained in the development plan. In a land pooling scheme, reconstituting the plots, the size and shape of every reconstituted plot to render it suitable for building purpose, and where a plot is already built upon to ensure that the building, as far as possible, comply with the provision of land pooling scheme as regard open spaces. Land pooling scheme may contain proposal: * To form a plot by reconstitution of an original plot by alteration of the boundaries of the original plot. * To form a recon....
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....ove activity was listed in the 12th Schedule to Article 243W of the Indian Constitution, the same was held exempted as per SI. No. 3 of the Notification No. 12/2017-Central Tax (Rate) dated 28th June 2017. 1.14 Further, there were another Advance Ruling judgment in case of CORE PROJECT ENGINEERS & CONSULTANTS PRIVATE LIMITED Ref-ST-ARA-32/2019-20/B-35, Mumbai, dated 17.03.2020, inter alia wherein the applicant was engaged in the activity of town planning, Urban planning. Since the above activity was listed in the 12th Schedule to Article 243W of the Indian Constitution, the same was held exempted as per SI. No, 3 of the Notification No. 12/2017-Central Tax (Rate) dated 28th June 2017. 1.15 From all the above, it becomes evident that if any pure Services are provided to a Government Authority by way of any activity in relation to any function entrusted to a Panchayat or Municipality under Article 243G or Article 243W of the constitution of India, then the same shall be exempted vide SI. No. 3 of the Notification No. 12/2017 Central Tax (Rate) dated 28th June 2017. 02 STATEMENT CONTAINING APPLICANT'S INTERPRETATION OF LAW The applicant provides services to the Municipal counc....
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.... 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." Given that our services are pure services directly related to functions entrusted to Municipalities under Article 243W, they qualify for this exemption. 2.1.2 Supporting Opinions and Assurances A. Chartered Accountant's Opinion Commissioned by Pimpri Chinchwad Municipal Corporation (PCMC). The PCMC sought an expert opinion from M/s. Chingale & Associates, Chartered Accountants, regarding the applicability of GST on property survey and tax assessment services. The opinion concluded that such services are exempt from GST, as they are essential to the mandatory functions of Municipal Corporations under Article 243W and fall within the purview of Notification No. 12/2017-Central Tax (Rate). B. Official Communication from PCMC In alignment with the aforementioned opinion, the Honorable Commissioner of PCMC issued a letter affirming that GST is not applicable to property survey and tax assessment services. The letter further assures that, should any ambiguity or future interpretation deem GST applica....
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....e, or tangible goods. These services fall within the scope of 'Pure Services', rendering them eligible for GST exemption under Notification No. 12/2017-Central Tax (Rate), Entry 3, which specifically exempts services provided to local authorities for functions listed under Article 243W. 2.2.2 Judicial Precedents Supporting GST Exemption Several Advance Ruling Authorities (AAR) and courts have upheld the GST exemption for similar engagements where services are provided to local bodies without any supply of goods. A. Advance Rulings Supporting GST Exemption Case Order No. Authority Date Summary Core Project Engineers & Consultant s Pvt. Ltd. ARA/32/2019-20/B-35 Maharashtra AAR 17/03/2020 Mapping services for Municipal Corporations exempt from GST as they fall under urban planning and land-use regulation functions of Article 243W. Egis India Consulting Engineers Pvt. Ltd. Feb-18 Madhya Pradesh AAR 22/06/2018 Consultancy services for AMRUT & PMAY qualify as Pure Services and are GS-exempt under Article 243W. Vimos Technocrats Pvt. Ltd. KAR ADRG 52/2020 Karnataka AAR 09/10/2020 Consultancy services to municipal bodies qualify as Pure Services and are exe....
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.... municipal laws. * The assertion that technical instruments are being 'supplied' as part of our service is factually incorrect and does not affect the eligibility for GST exemption. * Because used of those tools was for preparation of the data, we had not supplied those to the municipalities, corporation. 2.2.4 Compliance with Municipal Corporation & Council Acts * Chapter 11 of the Maharashtra Municipal Corporation Act - Property survey and taxation are statutory municipal functions. * Section 49(2)(V) of the Maharashtra Municipal Council Act - Property tax assessment is an essential function of municipal governance. * Our role is only to assist municipal corporations and councils in fulfilling these obligations due to their internal manpower limitations. * We do not undertake independent work or transfer ownership of any assets, equipment, or goods to the corporation. 2.2.5 No Element of Goods or Materials - Meeting Conditions of Circular 12/2017 Circular 12/2017 (CBIC) explicitly states that Pure Services are GST-exempt if: * Provided to municipal authorities for functions under Article 243W. * There is no supply of goods, materials, or software along w....
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....n written down under the article 243 G and 243 W of Constitution of India. 3.5 For the reimbursement of costs against providing these services if any amount is chargeable to the users, i.e. people staying in vicinities of these institute shall be amount of receipt not covered under the term supply under GST ACT, 2017. Hence exempted from Tax in view of article 243 G and 243 W of Constitution of India. 3.6 But in case of taxpayer M/s. Sthapatya Consultants (India) P.L, Inward supply of services required to Municipal Corporation, Municipal Councils and Nagar Panchyayat are actually services of manpower with specified skill as per requirement and with latest Technology and modern Instruments. Remuneration is paid by the Municipal Corporation, Municipal Councils and Nagar Panchayat from their local fund to these services required to be provided. Whereas receipt of amount as reimbursement of costs against mandatory services as per Article 243 G and 243 W is missing here. 3.7 Disclosing or writing name of the services required taking into view. Provision of Article 243 G and 243 W does not change the colour of transaction and hence interpretation put forth by RTP is nothing but the en....
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....een the parties that the First Party appoints second Party for assisting Municipal Council for the above mention work. All the process of assessment under the act and methodology shall be fixed and governed by First Party. Second Party shall work under the supervision and control of First Party for all works. 1. General Terms. B. Methodology of survey and tax assessment- The contract shall involve the data collection on site by dual value method as capital value and rateable value method. However, the second party shall computerized and prepare the database and provide services only for anyone method of property tax assessment which ever first party shall adopt. Scope of Work and Steps for performance of the contract and Assuring Quality and Correctness of the works and Payment terms- 5) Procurement of Drone/NRSA satellite image, demarcation of various boundaries on site, superimposing revenue boundaries, Providing services for assisting Municipal Council for dual method based (Ratable and Capital value method) Property survey (lands & buildings) Providing services for Computerization of Numbering, survey and old record data as per CMC, Providing services for preparation of da....
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....ांचे संगगीकृत नकारों काढणे, डिजीटल कल्तर फोटो कावून संगणक प्रणालीस जोडणे, करमुल्यांकन झोन नकाशा तयार करणे, संपुर्ण कामाचे संगणकीकरण करून संपूर्ण मालमहांचे करयोग्यमुल्य पद्धतीने संगणकीकृत मुल्यांक....
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.... 12/2017-Central Tax (Rate)is reproduced as under :- No. Chapter section heading Group or Service Code (Tariff) Description of Services Rate (Per Cent) Condition 1. Chapter 99 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. NIL NIL Thus, for any services to be exempt from GST under sl. no. 3 above, the said services must satisfy the following conditions: - 1. It must be a pure service, e.g. It must not be a works contract service or other composite supply of services involving transfer of goods, 2. It must be provided to Central Government, State Government or Union territory or Local Authority, 3. It must be an 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....
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....ecessary to enable them to carry out the responsibilities conferred upon them including those in relation to the matters listed in the Twelfth Schedule. We further find that the Twelfth Schedule (Article 243W of the Constitution (Seventy-Fourth Amendment) Act, 1992) reads as under: 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 promo on of ecological aspects. 9. Safeguarding the interests of weaker sections of society, including the handicapped and mentally retarded. 10. Slum improvement and up gradation. 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. Cattie pounds; prevention of cruelty to animals. 16. Vita....