TaxTMI 
TaxTMI 
TaxTMI 
2025 (7) TMI 198
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....the Local Authorities of Kayamkulam Municipality. The applicant has obtained necessary GST Registration Number from GST Department having GSTIN: 32ABJFA4188P1ZY for the purpose of providing such services. 2. In this Ruling, a reference hereinafter to the provisions of the CGST Act, Rules or the Notifications issued thereunder shall include a reference to the corresponding provisions of the KSGST Act, Rules or the Notifications issued thereunder. 3. The details of the questions on which advance ruling is sought are given above and are not being reproduced. 4. The contentions of the applicant: 4.1 The applicant is engaged in providing pure services to the Municipality. As per the terms of the agreement, the contractual value also includes....
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.... in the written application. 7. Discussion and Findings: 7.1 The applicant has submitted the facts of the issue and their contentions in this regard. The first question raised is whether the activity of the applicant, involving the provision of pure services for the repair and maintenance of public street lighting infrastructure and the supply of manpower based on the work order issued by the local authorities of Kayamkulam Municipality, is exigible to GST. The applicant has provided a copy of the agreement entered into with Kayamkulam Municipality, which stipulates that they are required to carry out maintenance of street lights in a time-bound manner using ISO-certified items. From the agreement, it is evident that the applicant is rend....
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....tory, local authority, governmental authority, or government entity (b) supply of pure service (or composite with goods ≤25%); and (c) the service must relate to an activity in the 11th/12th Schedule (List of 243G/243W) function. 7.3 Under the GST law, a Municipality is treated as a local authority by virtue of the definition provided under Section 2(69) of the CGST Act, 2017, which states that "local authority" includes a municipality as defined in clause (e) of Article 243P of the Constitution. Therefore, for the purposes of GST exemptions under Entry 3 of Notification No. 12/2017-Central Tax (Rate), a Municipality qualifies as a local authority, as it is a constitutionally recognized body entrusted with functions under Article ....
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.... 12/2017-Central Tax (Rate) dated 28-06-2017. Therefore, the question of applicable tax rate does not arise. If the exemption under Notification No. 12/2017 is not applicable, the supply would be taxable under SAC Heading 9987- Maintenance, Repair and Installation (except construction) Services, based on the description provided by the applicant. 7.7 The third question is whether the supply of street light maintenance services to various departments under the local authority provided by the applicant, i.e., Kayamkulam Municipality, is eligible for exemption from GST as per Sr. No. 3 of Notification No. 12/2017-Central Tax (Rate) dated 28-06-2017, as amended, being pure services as per the definition and relating to the functions listed und....
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....ment Entity" from the list of eligible recipients. However, this amendment does not affect the exemption for supplies made to a "local authority", which continues to be covered under both Entry 3 and Entry 3A, provided the supply is either of pure services or a composite supply involving goods not exceeding 25% of the total contract value, and the services relate to functions entrusted to Panchayats or Municipalities under Article 243G or Article 243W of the Constitution. In the light of the facts and legal position as stated above, the following ruling is issued: RULING Question: 1. Whether the activity of the applicant of providing pure services of repairs and maintenance of Public street lighting infrastructure and supply of manpower ....