TaxTMI 
TaxTMI 
2025 (10) TMI 783
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....e concerned officer or the jurisdictional officer in respect of the applicant. 3. In terms of Section 103(2) of the Act, this advance ruling shall be binding unless the law, facts or circumstances supporting the original advance ruling have changed. 4. Advance Ruling obtained by the applicant by fraud or suppression of material facts or misrepresentation of facts, shall render such ruling to be void ab-initio in accordance with Section 104 of the Act. 5. The provisions of CGST Act, 2017 and DGST Act, 2017 are pari-materia and have the' same provisions in like matter and differ from each other only on a few specific provisions. Therefore, unless a mention is particularly made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the DGST Act and vice-versa. This is an application under Sub-Section (1) of Section 97 of the CGST/DGST Act, 2017 filed by M/s Central Pollution Control Board/(CPCB) PARIVESH BHAWAN, EAST ARJUN NAGAR, DELHI, East Delhi, Delhi, 110032, having GSTIN 07AAALC0228L2ZD. The CPCB seek advance Ruling on the question: "Whether the CPCB (An autonomous body of the Minist....
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....ogramme on the prevention, control or abatement of water and air pollution; • Collect, compile and publish technical and statistical data relating to water and air pollution and the measures devised for their effective prevention, control or abatement; • Prepare manuals, codes and guidelines relating to treatment and disposal of sewage and trade effluents as well as for stack gas cleaning devices, stacks and ducts • Disseminate information in respect of matters relating to water and air pollution and their prevention and control; • Lay down, modify or annul, in consultation with the State Governments concerned, the standards for stream or well, and lay down standards for the quality of air; and • Perform such other function as may be prescribed by the Government of India. (d). The CPCB being a governmental authority working under the ministry of Environment, Forest and Climate Change of Government of India entrusted with various statutory functions such as: i) issuing various licences and/or granting consent/registration under: a. Water (Prevention and Control of Pollution) Act, 1974, b. ....
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.... and Control of Pollution) Act, 1974 and the Air (Prevention and Control of Pollution) Act, 1981. Such collections are not in the nature of commercial receipts but constitute statutory levies or fees collected in furtherance of regulatory and supervisory obligations imposed by law. 3. Details of the question on which Advance Ruling requested: (a). The Central Pollution Control Board (CPCB) is a statutory body constituted by the Central Government under the provisions of Section 3 of the Water (Prevention and Control of Pollution) Act, 1974, and functions under the administrative control of the Ministry of Environment, Forest and Climate Change. As a public authority established by law, the CPCB discharges a wide range of statutory, regulatory, and sovereign functions in the field of environmental protection and pollution control. (b). Its mandate includes monitoring and controlling air and water pollution, implementation of various waste management rules, and granting Consent to Establish (CTE) and Consent to Operate (CTO) to industries under the applicable environmental regulations. The CPCB is also entrusted with the responsibility of advising the Central Government on m....
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....; or (ii). established by any Government, with ninety per cent. or more participation by way of equity or control, to carry out any function entrusted to a Panchayat under article 243G or to a municipality under article 243W of the Constitution; (b). The Central Pollution Control Board (CPCB) also qualifies as a "local authority" within the meaning of Section 2(69) of the Central Goods and Services Tax Act, 2017, based on the interpretative guidance provided by judicial and quasi-judicial forums. In particular, reference is drawn to the Ruling No. 08/2018-19 dated 11th September 2018 issued by the Authority for Advance Ruling (Uttarakhand), wherein it was held that the Uttarakhand Environment Protection and Pollution Control Board qualifies as a local authority under Section 2(69) of the CGST Act. The said ruling recognised that such boards are established by the government and are entrusted with functions falling under the Twelfth Schedule of the Constitution, particularly those relating to environmental protection and public health. (c). The activities undertaken by the CPCB are in direct discharge of its statutory, sovereign and/or regulatory obligations as a gove....
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.... public and statutory mandate. 5. Comments of the Jurisdictional Officer (SGST): (a) Constitution of the applicant and its governing laws: • For the purpose of determining the legal status and constitution of the applicant, this Authority has considered the provisions of the Water (Prevention and Control of Pollution) Act, 1974. On a careful reading of the relevant part of the said enactment, it is noted that the Central Pollution Control Board (CPCB) has been constituted by the Central Government in exercise of the powers conferred under Section 3 of the Act. The said provision empowers the Central Government to constitute a Central Board for the prevention and control of water pollution, which shall be a body corporate having perpetual succession and a common seal, with powers to acquire, hold and dispose of property and to contract, and shall, by the said name, sue and be sued. • It is further observed that the CPCB has subsequently been entrusted with powers and functions under the Air (Prevention and Control of Pollution) Act, 1981 and the Environment (Protection) Act, 1986, thereby extending its jurisdiction and responsibilities. From the above....
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....eading, Group or Service Code (Tariff) Description of Services Rate (percent) Condition 4. Chapter 99 Services by Central Government, State Government, Union territory, local authority or governmental authority by way of any activity in relation to any function entrusted to a municipality under article 243 W of the Constitution Nil Nil Status/Position of the applicant under the GST Laws: (a). The terms 'Government Authority' & 'Government entity' were inserted by Notification No. 31/2017-Central Tax (Rate) dated 13.10.2017 (amendment in Notification No. 11/2017 dated 28.06.2017) as clauses (ix) & (x) of explanation in Para 4 which is as follows: • (ix) Governmental Authority means an authority or a board or any other body, - (I). Set up by an Act of Parliament or a State Legislature; or (ii). Established by any Government, with 90 percent or more participation by way of equity or control, to carry out any function entrusted to a Municipality under article 243 W of the Constitution or to a Panchayat under article 243 G of the Constitution. • (x) Government Entity means an a....
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....tection, pollution prevention, and ecological management. (ii). To assess the status and taxability of CPCB under the Goods and Services Tax (GST) regime, it is important to examine whether its functions are in alignment with those entrusted to Municipalities under Article 243W of the Constitution of India. (iii). Article 243W empowers the State Legislature to confer powers and responsibilities upon Municipalities with respect to the preparation of plans for economic development and social justice, and the performance of functions listed in the Twelfth Schedule. The Twelfth Schedule contains 18 functional items, several of which closely align with the statutory duties of CPCB. Notably, the following entries are of particular relevance: Entry 6: Public health, sanitation, conservancy, and solid waste management; Entry 8: Urban forestry, protection of the environment and promotion of ecological aspects. (iv). The CPCB is engaged in activities that directly fall within the scope of the above entries. These include: • Monitoring and control of air and water pollution across the country; • Enforcement of environmental standards and no....
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.... 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. (vi). Notification No. 12/2017-Central Tax (Rate) Dated 28th June, 2017 and its applicability to CPCB : • Notification No. 12/2017-Central Tax (Rate), dated 28th June 2017, stands as a cornerstone in the architecture of India's Goods and Services Tax (GST) regime. Issued under the authority granted by Section 11(1) of the CGST Act, 2017, this notification was framed to exempt certain categories of services from GST, in recognition of their public welfare character and constitutional significance. • The rationale behind this notification is deeply anchored in public interest, constitutional governanc....
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.... the environment and promotion of ecological aspects is upheld in the realm of taxation policy. • In consideration of the letter and spirit of Notification No. 12/2017-Central Tax (Rate), dated 28th June 2017, it is observed that Entry No. 4 of the said notification specifically provides exemption from levy of GST on services rendered by a Governmental Authority by way of any activity in relation to the functions entrusted to a municipality under Article 243W of the Constitution of India. These functions are outlined in the 12th Schedule and cover core civic responsibilities such as water supply, sanitation, solid waste management, urban planning, environmental protection, and public health. • The underlying principle of this exemption is to ensure that statutory, sovereign, and regulatory functions, when performed by entities established or controlled by the Government, are not subject to GST. This reflects a recognition of the constitutional mandate and public interest inherent in such services. These activities are carried out not for commercial gain but as part of the Government's obligation to ensure basic civic amenities and governance. â....
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....s and Solid Waste Management are one of the functions entrusted to the Municipality under the said Article (Article 243W). It is evident that primary function of CPCB is also to safeguard the environment as well as general public from the negative impact of polluting generating plants. Thus, both the conditions viz. Service has to be provided by Local Authority/Government Authority and activity should falls under Article 243 W of the Constitution, has been fulfilled, hence, the said activity of the applicant is exempted in terms of SI. NO. 4 of the Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017. therefore, there is no liability of GST arises on the amount collected by the applicant in respect of said activity as the same is exempted service. (x). The aforesaid opinion is based on the analysis of given below relevant legal provisions, judicial interpretations: - i. Provisions of section 3 of the Water (Prevention and Control of Pollution) Act, 1974 ii. Section 2(69) of the Central Goods and Services Tax Act, 2017 iii. Explanation given under section 2(16) of the Integrated Goods and Services Tax Act, 2017 iv. Provisions of Article....