TaxTMI 
TaxTMI 
TaxTMI 
2025 (8) TMI 550
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....areholding) and is a Special Purpose Vehicle entrusted with the responsibility of implementation and operation of Bangalore Metro Rail Project. The applicant further stated that the metro project undertaken by them has a north-south corridor measuring 17 km long and for which, the total project cost is estimated to be INR 4,202 crores; the Applicant is the absolute owner of the entire Metro network, tracks and Metro stations along with the structures constructed thereon within the jurisdiction of Bangalore City; the Applicant, with an intention to augment funds for the metro project has identified and invited applications from private entities/companies to partly fund the total project cost and M/s Embassy Property Developments Private Limited ("EPDPL" or "Concessionaire") had agreed to invest certain amount for construction of the "Kadubeesanahalli Metro Station" on the Outer Ring Road in consideration of which the applicant will grant certain concession. 3. In view of the above, the applicant has sought advance ruling in respect of the following questions: a) Whether the Applicant is a "Government Authority" vide Paragraph-2(zf) of Notification no. 12/2017-CT (Rate) dated 28.0....
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....bsequent extension, to be agreed on mutual basis. (Copy of MOU dated 04.06.2018 is enclosed to this application as Annexure-A). 5.2 Thereafter, basis Clause 1.1 of the MOU, an agreement for Assignment and Novation of Rights dated 27.11.2020 was entered into between EPDPL and Vikas Telecom Private Limited. As per the said agreement, EPDPL had fully and irrevocably assigned, transferred and novated all its rights, benefits and obligations under the MOU and all letters to Vikas Telecom Private Limited. 5.3 The Applicant understands that the activity of grant of concession in terms of the MOU dated 04.06.2018 to the "Concessionaire" (EPDPL or VTPL) is not liable for payment of GST since the same is exempted from payment of GST vide SI. No. 4 of notification no. 12/2017-CT (Rate) dated 28.06.2017 and therefore desirous of understanding the applicability of the exemption notification on the activity of grant of concession. 6. Applicant's Interpretation of Law: 6.1 The Applicant understands that levy and collection of the CGST is governed by the Central Goods and Services Tax Act, 2017 (hereinafter referred to as the 'CGST Act') and levy and collection of SGST is governed by respect....
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....ty under article 243W of the Constitution or to a Panchayat under article 243G of the Constitution." 6.5 Based on the above definition, the Applicant believes that they would fall within the definition of "governmental authority" as defined above inasmuch as they are covered within "any other body" established by any Government with 90% or more participation by way of equity or control to carry out any function entrusted to a Municipality under article 243W of the Constitution or to a Panchayat under article 243G of the Constitution. The Applicant is a joint venture of both the Government of India as also Government of Karnataka where each of the Governments are holding 50% equity. 6.6 In support of the above understanding, the Applicant place reliance on the ruling given by AAR-Andhra Pradesh in the case of In Re: Amaravathi Metro Rail Corporation Ltd., reported in 2018 (18) GSTL 851 (AAR-GST): [2018] 99 taxmann.com 104 (AAR - ANDHRA PRADESH) wherein the AAR has held that Amaravathi Metro Rail Corporation Ltd. is a Government authority as per the Exemption Notification No. 12/2017-Central Tax dated 28th June, 2017 since the same was set up by the Government of Andhra Pradesh. Th....
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.... as may be entrusted to them including those in relation to the matters listed in the Twelfth Schedule to the Constitution. The Twelfth Schedule to the Constitution covers the fields such as - (i) Urban planning including town planning; (ii) Regulation of land-use and construction of buildings; (iii) Planning for economic and social development, (iv) Roads and bridges, (v) Provision of urban amenities and facilities such as parks, gardens, playgrounds, (vi) Public amenities including street lighting, parking lots, bus stops and public conveniences, etc. Thus, a Municipality may be entrusted with such powers and authority inter alia in relation to the matters listed in the Twelfth Schedule to the Constitution, which the Applicant believes are wide fields/matters. It is understanding of the Applicant that, - (a) Implementation of Bangalore Metro Rail Project within the Bangalore city necessarily involves "urban planning and town planning" functions and the same would have to construed as "any service in relation to any function entrusted to a municipality under article 243W read with Twelfth Schedule to the Constitution. (b) Similarly, the expression "regulatio....
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....rity' by way of any activity "in relation to" any function entrusted to a municipality under article 243W of the Constitution is exempted from payment of GST. 6.13 Further, the above understanding is also supported by the ruling given by AAR-Andhra Pradesh in the case of In Re: Amaravathi Metro Rail Corporation Ltd., (supra) wherein vide para-4.3.1 & 4.3.2 of the ruling, the AAR has also held that - "Urban Planning is a function entrusted to Municipality under Article 243W of the Constitution. The applicant has invited our attention to Ministry of Urban Development, Government of India in K-14011/07/2007/Metro/ UT, dated 29-8-2007, addressed to all the Chief Secretaries of the States and Union Territories, informing the decision that the urban transport and urban planning must go together and that urban transport is an integral part of urban development, which will help in ensuring that urban transport remains an integral part of urban planning at all the times and cities are planned in a wholistic manner. Therefore, we held that Urban Transportation also is a part of Urban Planning". Further, vide para-4.3.3 of the ruling, Amaravathi Metro Rail project would also come under the e....
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.... list of functions entrusted to municipality under article 243 W of the constitution, which is as under: 243W : Powers, authority and responsibilities of Municipalities, etc Subject to the Au 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; There are 18 items in the twelfth schedule of the Constitution which are as below: Twelfth Schedule [Article 243W of the Constitution (Seventy-Fourth Amendment) Act, 1992] 1. Urban planning including town planning. 2. Regulation of land-use and construction of buildings. 3. Planning for economic and social development. 4. Roads and bridges. 5. W....