TaxTMI 
TaxTMI 
2025 (7) TMI 1387
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....for Advance 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 states that he provides Dredging service to various States and Central Government. The applicant has been rewarded work order by Government of West Bengal (Irrigation & Waterways Directorate) (hereinafter referred to as "Govt.") for dredging to be undertaken by Cutter Suction Dredger (CSD) in Channels i.e. Channel I, III, 2A and 3A as mentioned in order to achieve the desired level throughout the period of Ganga Sagar Mela 2025 irrespective of tides. The scope of the work comprises of Dredging be....
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....ent. ** With the help of existing Rain Gauge stations and River Gauge stations and collection of data and interaction with some relevant departments like CWC, IMD etc., a Flood Warning System has been developed. ** The department has a Public Relations & Statistical cell which publishes a news magazine "Sechpatra" both in Bengali & English regularly. The link to webpage: https://wbiwd.gov.in/index.php/applications/about 2.2 Article 243G of the Constitution of India have been produced as follows: Article 243G of the Constitution of India states the following: "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 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. The preparation of plans for economic development and social justice; The implementation of sc....
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..... Every year, dredging is carried out in the river for uninterrupted ferry operation. Ferry services are operated between Kakdwip and Kachuberia, Sagar Dwip on the occasion of fairs and Ganga bath. Several temporary jetties were constructed for faster and more pilgrim transport. All vessels and buses can be monitored from a central control room. GPS and NAVIC (Navigation with Indian Constellation) technology is used in all the transport vehicles of Sagar Dwip for surveillance. Vessels are also provided with navigation lights to prevent visibility problems due to fog. This above mentioned purpose of dredging has been taken from Wikipedia Link to the webpage: https://en.wikipedia.org/wiki/Gangasagar_Mela 2.4 Further dredging of the Muriganga river is done to improve the navigability of the river in order to carry the journey without any hindrances. This dredging operations are undertaken for movement of barges carrying pilgrims. Essential dredging operations are undertaken to remove sandbars that could hinder the movement of large vessels during the Ganga Sagar Mela. Hence the dredging service is carried out to improve the low navigability of river. 2.5 Notification no. 9/20....
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....Tax (Rate) Hence, no GST is leviable. 2.6 Similar Advance Rulings are cited below wherein the said supply is exempted and the Notification is applicable. (a) Arihant Dredging Developers Pvt. Ltd.; Order No. 04/WBAAR/2019-20 dated 10/06/2019 The lrrigation and Waterways Directorate, Govt of West Bengal has awarded the Applicant a contract for resectioning of river Jamuna from the upstream of Charghat Bridge to the downstream of Ghonja Haspur Bridge in Block and P.S Swarupnagar, Habra - 1 and Gaighata in North 24 Parganas. The Applicant sought a ruling on whether an exemption under Sl No. 3 or 3A of Notification No. 9/2017-Integrated Tax (Rate) dated 28/06/2017 (hereinafter the Exemption Notification), as amended from time to time, applies to the above supply. Herein, the Applicant submitted that the Irrigation and Waterways Directorate, Govt of West Bengal, that is, the recipient is the State Government. He also submitted a price schedule that describes the work and its value and claimed that the work is an activity in relation to a function entrusted to a Panchayat under Article 243G and/or a municipality under Article 243W. The be....
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....hayat under Article 243G. The contract is meant for resuscitation of Palaspai River. It involves pumping out the water from the clogged channels, excavation of the drainage channels, lifting and deposit of the excavated materials to specified locations, and compacting earthwork for strengthening the embankment. Cost of supplying materials is included in the compacting cost. The supply of goods, however, does not constitute any significant portion in terms of value. As such, compacting, in the course of which goods are to be supplied, constitutes only 2% of the value of the contract. It is, therefore, a composite supply primarily of various services, principal supply being the service of resuscitation of the river, where the supply of goods constitutes well below the threshold mentioned in SI No. 3A of the Exemption Notification. The recipient was held to be the State Government. The bench made reference to Circular No. 51/25/2018-GST dated 31/07/2018 similarly as in the previously cited Ruling. Bench Observation: It was also held that the recipient is engaged in the development of irrigation and waterways, which includes activities in re....
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....2017 with effect from 13/10/2017 till 24/01/2018. It has since been exempted 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. This Ruling is valid subject to the provisions under Section 103 until and unless declared void under Section 104(1) of the GST Act. (d) Dredging and Desiltation Company Private Limited; Order No. 12/WBAAR/2019-20 dated 10/06/2019 The Orissa Construction Corporation Limited (hereinafter the recipient) has awarded the applicant a contract for sectioning of Makara River (Right Drainage) and Garanimunha branch of Makara River (Part A, Makara Right Drainage) in Orissa. The Applicant seeks a ruling on whether the recipient is a government entity in terms of clause 2 (zfa) of Notification No 912017 lntegrated Tax (Rate) dated 28/06/2017 (hereinafter the Exemption Notification). He further seeks a ruling on the taxability of his supply in terms of the Notification No. 08/2017-lntegrated Tax (Rate) dated 28/06/2017 (hereinafter the Rate Notification) and the Exemption Notification, as the case may be, and as amended from time to ....
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....per serial Clause (ii) of No. 23 heading 9985 in Notification No. 11/2017 Central Tax (Rate) dated 28.06.2017 issued by Government of India. (iii) Article 243 G of the Constitution of India deals with the powers of Panchayats and Article 243W of the Constitution of India deals with the powers of Municipalities. As per work order with Memo No 2291 dated 17.10.2024 submitted by the applicant, the work order was issued by the Executive Engineer, Kakdwip Irrigation Division. Hence, provision of article 243G or 243W of the constitution of India are 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 views given by the Revenue. 4.2 According to the facts narrated by the applicant, he has been awarded work order by Government of West Bengal (Irrigation & Waterways Directorate) for dredging to be undertaken by Cutter Suction Dredger (CSD) in Channels i.e. Channel I, III, 2A and 3A in the river Muriganga in order to achieve the desired water level in the said river throughout the period....
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....sion, we should discuss some concepts which will act as reference in the latter part of the discussion. Pure Service: This term has not been defined in the provisions of the GST Act. This term has reference in serial no. 3 of Notification No. 12/2017-Central Tax (Rate) Dated 28.06.2017, as amended. Pure Services exclude works contract service or other composite supplies involving supply of goods. So supply of services which does not involve any supply of goods can be regarded as pure service. Composite Supply: Section 2(30) of the CGST Act defines Composite Supply as 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 in conjunction with each other in the ordinary course of business, one of which is a principal supply. Article 243G: This Article of the Constitution of India reads as under: 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 as may be necessary to enable them to function as ....
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....itution of India reads as under: 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 Twelfth Schedule as available in the Constitution of India downloaded from the official website of Legislative Department, Ministry of Law and Justice, Government of India (https....
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....e or other composite supplies involving supply of any goods) provided to the Central Government, State Government or Union territory or local authority or a Governmental 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 4.7 It is evident from the above table that in order to qualify for Serial no. 3 of the Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017, three conditions are to be fulfilled simultaneously. 1. The service must be a pure service. It should not be works contract service or other composite supplies involving supply of any goods. 2. The service is to be provided to the Central or State Government or Union Territory or a local authority or a Governmental authority. 3. The service provided must be done by way of any activity in relation to any function entrusted to a Panchayat or Municipality under article 243G or 243W of the Constitution of India respectively. 4.8 As per the records placed before us, the applicant's works of dredging by Cutt....
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.... of the Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 are fulfilled in the present case. 4.10 Now we come to the first condition of serial no. 3 of the Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017. The applicant's contention is that dredging and dumping of the dredged material is a pure service. He has only referred to the definition of dredging as per Section 65(36a) of the Finance act, 1994. This is basically a reference to the erstwhile Service Tax Act. The definition of dredging reads as under: "dredging" includes removal of material including, silt, sediments, rocks, sand, refuse, debris, plant or animal matter in any excavating, cleaning, deepening, widening or lengthening, either permanently or temporarily, of any river, port, harbour, backwater or estuary. The GST Act, however, does not define dredging anywhere in the act. The Oxford dictionary has defined dredge (verb) as 'to remove mud, stones etc. from the bottom of a river, canal etc. using a boat or special machine, to make it deeper or to search for something'. The Cambridge dictionary has defined dredging as 'to remove unwanted things from the bottom of a river, lake, ....