TaxTMI 
TaxTMI 
TaxTMI 
2025 (10) TMI 1318
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.... Minister. It overseas all the activities pertaining to planning, construction and maintenance of all categories of roads and all Government buildings in Gujarat. The Government owned buildings comprise of Public Buildings, Government office buildings, Hospitals, Educational Institutions and buildings pertaining to all departments of the State. (b) Before the construction of a road and a building is given to a contractor through tendering process, the R & B Department is required to make a detailed analysis of projects like field survey, collection of various data related to the construction activity, feasibility report, cost estimates, preparation of plans and drawings etc. The Department through a tendering process obtains these kinds of services from various consultants. The applicant has provided the said consultancy services to the R & B Department. (c) The nature of the work as per the tender is:- "Preparing & Providing plans and Estimate and DTP (Draft Tender Paper) for the Building Work". The scope of the work as per the tender is as under :- (i) To carry out preliminary and detailed field surveys and collection of data for the proposed project. (ii)....
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.... 30.05.2024 ruled that providing services of preparing and providing plans and estimate, and preparing and providing DTP for the building work by the applicant to the R & B Department under the contract would not qualify as an activity in relation to Panchayat or Municipality under Article 243G or Article 243W respectively. of the Constitution of India. (g) The applicant appealed before the Appellate Authority for Advance Ruling (GAAAR) and provided tender documents/work orders demonstrating the scope of services and a detailed list of projects executed for the R & B Department, along with the nature of buildings and the corresponding clauses of the Eleventh and Twelfth schedule of the Constitution. (h) The GAAAR, vide Order No. GUJ/GAAAR/APPEAL/2025/12 Did. 28.02.2025, set aside this Authority's ruling dtd. 30.05.2024 on the ground that crucial project-specific details were not considered, and remanded the matter to this Authority for a fresh decision after examining the complete factual record. (i) The applicant has placed on record the detailed list of projects executed for the R & B Department, along with the nature of buildings and the corresponding clauses of the Ele....
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....vel comfort. (b) The Applicant is of the view that the said services provided to the R&B Department should fall within the ambit of Sl. No.3 of the exemption notification 12/2017-Central Tax (Rate) dated 28.06.2017, as per which "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", is exempt. (c) To claim exemption, three conditions should have been met:- (i) Pure services (ii) provided to the Central Government, State Government or Union territory or local authority (iii) 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. (d) The GAAR has in its order dtd. 30.05.2024 accepted that the service rendered is a "pure service". The fact t....
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....particular, of the Scheduled Castes and the Scheduled Tribes. 8 Gujarat Informatics (GIL) Limited 2. Planning of land use and construction of Building buildings. 3. Planning for economic and social development. 13. Promotion of cultural, educational and aesthetic aspects 9 Storm Water Drain 2. Planning of land-use and construction of buildings 3. Minor irrigation, water management and watershed development. 10. Centres under Intensive Cattle Development Program (ICDP), Intensive Poultry Development Project and Animal Husbandry EPI Centre 2. Planning of land-use and construction of buildings 15. Cattle pounds; prevention of cruelty to animals. 4. Animal husbandry, dairying and poultry. 11. Government Building viz.. Seva Sadan, Sub-registrar Office, City Survey Office Building, City Mchsuli Bhavan, Agriculture Department Building, Unity Mall, PWD Store Building, Gujarat Bhavan, Collector Office, GERI Office Building, Taluka Court Building and District Court 1. Urban planning including town planning. 2. Planning of land-use and construction of Building 3. Planning for economic and social development. 29. Maintenance....
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....ertain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the GGST Act. 9. We have considered the submissions made by the applicant in their application for advance ruling as well as the submissions made both oral and written during the course of personal hearing. We have also considered the issue involved, the relevant facts & the applicant's submission/interpretation of law in respect of question on which the advance ruling is sought and the order No. GUJ/GAAAR/Appeal/2025/12 dtd. 28.02.2025 of the Appellate Authority for Advance Ruling, Gujarat. 10. We find that the applicant had approached this authority earlier seeking a ruling as to whether providing services of preparing and providing plans and estimate, and preparing and providing DTP [Draft Tender Plan] for the building work provided by the applicant to the R&B department, Government of Gujarat under a contract would qualify as an activity in relation to Panchayat or Municipality under Article 243G or Article 243W respectively, of the Constitution of India and consequently exempt under Sl. No.....
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....icipality under article 243W of the Constitution. Nil Nil As per this notification, the benefit would be available if the following three conditions are satisfied: - (i) Pure services (excluding works contract service or other composite supplies involving supply of any goods) (ii) provided to the Central Government, State Government or Union territory or local authority (iii) the services provided in question is 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. This authority in the first round had found that the service of preparing and providing plans and estimates and DTP is a 'pure service' as it did not involve any supply of goods. Further, after going through the website of the R & B Department, this Authority had also found that R & B Department is a State Government entity. Therefore, we are not going into that aspect as it has already been dealt with by this Authority in the earlier round. We are presently only concerned with the third condition i.e whether the activity or the services provided i....
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....ted the following functions to the Municipalities: (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) 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 promotion of ecological aspects. (9) Safeguarding the interests of weaker sections of society, including the handicapped and mentally retarded. (10) Slum improvement and upgradation. (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) Cattle pounds; prevention of cruelty to animals. (16) Vital statistics including registration of births and deaths. (17) Public amenities including str....
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....use 17 of 11th Schedule of Article 243G, as only Primary and secondary schools come under this category. Further, in Re: Nirma University [2022 (59) G.S.T.L. 437 (A.A.R. - GST - Guj.)], this authority had held that Higher education is nowhere specified as an activity in relation to any function entrusted to Municipality under Article 243W of the Constitution of India. (2) SI.No. Nature of Government Building Clause of the 12th Schedule of Article 243W of the constitution in which it is falling Clause of the 11th Schedule of Article 243G of the constitution in which it is falling 2 Industrial Training Institute (I.T.I) of Government 13. Promotion of cultural, educational and aesthetic aspects 18. Technical training and vocational education. We find that the applicant has provided services for construction of toilets facility, ramp, class rooms etc., repairing and renovation at the Industrial Training Institute (ITIs), Vocational Training Centres at Ahmedabad, Bharuch, Navsari and Tapi Vyara. Industrial Training Institutes and Vocational Training Centres provide vocational training for the various industries & service sectors. We, therefore, ....
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....per the applicant, the toilets provided to these Govt buildings will fall under Clause 1 (Urban planning including town planning) and Clause 6 (Public health, sanitation conservancy and solid waste management) of 12th Schedule of Article 243W and Clause 23 (Health and sanitation, including hospitals, primary health centres and dispensaries) and Clause 29 (Maintenance of community assets) of 11th Schedule of Article 243G. However, we do not subscribe with this view of the applicant. Toilets may come under Clause 6 of 12th Schedule of Article 243W or Clause 23 of 11th Schedule of Article 243G, provided they are public toilets constructed beside the roads or in the parks by public authorities. In the instant case, they are a part of a government building and is not a walk-in facility for the general public. However, if these Government buildings fall under any of the functions provided under any of the Clauses of 12th Schedule of Article 243W or Clauses of 11th Schedule of Article 243G, then the toilets attached to these buildings would also be eligible for the exemption being part of these buildings, which we have discussed in the later part of our order. (5) SI.No. Na....
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.... have been provided for repairing and renovation of a District Library at Bharuch and a Library building at Navsari, which according to us would fall under Clause 20 of the 11th Schedule of Article 243G (Libraries). (7) SI.No. Nature of Government Building Clause of the 12th Schedule of Article 243W of the constitution in which it is falling Clause of the 11th Schedule of Article 243G of the constitution in which it is falling 7 Female dormitory of New Beggars Receiving Centre 1. Urban planning including town planning. and social development. 3. Planning for economic 9. Safeguarding the interests of weaker sections of society, including the handicapped and mentally retarded. 11. Urban poverty alleviation. 16. Poverty alleviation programme. 27. Welfare of the weaker sections, and in particular, of the Scheduled Castes and the Scheduled Tribes. The applicant has provided service for construction of a female dormitory of New Beggars Receiving Centre at Gandhinagar. We feel that such a dormitory would be covered under Clause 9 of 12th Schedule of Article 243W (Safeguarding the interests of weaker sections of society, including....
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....velopment Project and an Animal Husbandry EPI Centre at Valsad. We find that these would be covered under Clause 4 of the 11th Schedule of Article 243G (Animal husbandry, dairying and poultry). (11) Sl.No. Nature of Government Building Clause of the 12th Schedule of Article 243W of the constitution in which it is falling Clause of the 11th Schedule of Article 243G of the constitution in which it is falling 11. Government Building viz.. Seva Sadan, Sub-registrar Office, City Survey Office Building, City Mchsuli Bhavan, Agriculture Department Building, Unity Mall, PWD Store Building, Gujarat Bhavan, Collector Office, GERI Office Building, Taluka Court Building and District Court 1. Urban planning including town planning. 2. Planning of land-use and construction of Building 3. Planning for economic and social development. 29. Maintenance of community assets. We have already discussed earlier that "Urban planning including town planning" means development of plans for urban areas, enforcing regulations of the development plans, enforcing building bye-laws and "Planning of land use and construction of buildings" would include regulating th....
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....ing Clause of the 11th Schedule of Article 243G of the constitution in which it is falling 13. New Rehabilitation Home for women and persons cured after treatment from mental illness. 9. Safeguarding the interests of weaker sections of society including the handicapped and mentally retarded. 25. Women and child, development. 26. Social welfare, including welfare of the handicapped and mentally retarded. 27. Welfare of the weaker sections, and in particular, of the Scheduled Castes and the Scheduled Tribes. The applicant has provided services for construction of New Rehabilitation Home for women and persons cured after treatment from mental illness at Surat. We feel that such a Home would get covered under the Clause 9 of 12th Schedule of Article 243W (Safeguarding the interests of weaker sections of society including the handicapped and mentally retarded) and Clause 25 (Women and child, development), Clause 26 (Social welfare, including welfare of the handicapped and mentally retarded) of the 11th Schedule of Article 243G. In Re: Meerabai Tukaram Borade [2023 (68) G.S.T.L. 78 (App. A.A.R. - GST - Mah.)], the AAAR has held that services provid....
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....t buildings, mentioned in Para 16, infra) (iii) Government Staff Residential Quarters, Judicial Officers Staff Quarters (iv) Gujarat Informatics (GIL) Limited Building (v) Government Building viz .Seva Sadan, Sub-registrar Office, City Survey Office Building, City Mehsuli Bhavan, Agriculture Department Building, Unity Mall, PWD Store Building, Gujarat Bhavan, Collector Office, GERI Office Building, Taluka Court Building and District Courts. (vi) Government Rest House & Circuit House 16. Further, the services provided in respect of the following buildings/structure is an activity which will fall in the respective Clause of 12th Schedule of Article 243W or of 11th Schedule of Article 243G, as mentioned supra. (i) Industrial Training Institute (I.T.I) of Government (ii) Nalsarovar Bird Sanctuary (iii) Government School Building, Boys and Girls Hostel and District Library (iv) Female dormitory of New Beggars Receiving Centre (v) Storm Water Drain (vi) Centres under Intensive Cattle Development Program (ICDP), Intensive Poultry Development Project and Animal Husbandry EPI Centre. (vii) ....
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....7.2018, wherein the Board has clarified about the applicability of GST on ambulance services provided to Government by private service providers under the National Health Mission (NHM). The Board has held that the function of 'Public Health' is entrusted to the Municipalities under Article 243W of the Constitution and ambulance services are an activity in relation to the functions entrusted to the Panchayats and Municipalities under Article 243G and 243W of the Constitution, the same would be exempt under Notification No. 12/2017-CT(R) dtd. 28.06.2017. 19. We also find that the applicant has placed reliance on the following Advance Rulings: - (i) Jayesh Anil Kumar Dalal (ii) Manpar Icon Technologies (iii) Ajit Babubhai Jariwala We have gone through these judgements. We find that in Jayesh Anil Kumar Dalal, and in Manpar Icon Technologies, the applicant had provided Project Development Service and Project Management consultancy service to the State Urban Development Authority (SUDA) for the Pradhan Mantri Awas Yojana (PMAY) scheme. The AAAR held that as PMAY is to address the affordable housing requirement in urban areas through slum rehabilitation i....
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....meaning a direct and proximate relationship to any function entrusted to a Municipality under Article 243W of the Constitution or to a Panchayat under Article 243G. Further, it is trite law that exemption notifications are to be interpreted strictly and the burden of proving the applicability would be on the taxpayer to show that his case comes within the parameters of the exemption clause or exemption notification. We find that in respect of the services which we have mentioned in Para 15 supra, the applicant has not been able to show as to how these buildings are in any way related to the function entrusted to Panchayat under Article 243G of Constitution or in relation to function entrusted to Municipality under Article 243W of Constitution. 21. We find that in Re: Janki Sushikshit Berojgar Nagrik Seva Sahakari Sanstha Ma Amravati [2021 (46) G.S.T.L. 277 (A.A.R. - GST - Mah.)], the AAR held that the service of providing labour for cleaning of office premises to the Collector office is not related to any function under under Article 243G or Article 243W of the Constitution. In Re: Hyderabad Metropolitan Water Supply And Sewerage Board [2023 (71) G.S.T.L. 310 (App. A.A.R. - GST ....