TaxTMI 
TaxTMI 
2025 (12) TMI 983
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....ulations, 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 is an entity engaged inter-alia in the business as a provider of Digitalisation and Monitoring of Mega Schemes; Enhancer of the Jalmitra application; Digitization of the Piped Water Supply schemes; Collection, Scanning and Digitization of printed distribution drawings along with development of a GIS tool; Relevant Data management, analysis and documentation; Organizing Orientation Programme for ISAs DPMU and Engineer Officers on Functionality Assessment along with Evaluation of performance under Support Activities of JJM....
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.... In case where the answer to question No 2 is in negative, what shall be the classification and the rate of tax? 1.4 The questions on which the advance ruling is sought for is found to be covered under clause (b) of sub-section (2) of section 97 of the GST Act. 1.5 The applicant states that the questions rose in the application neither have been decided by nor is pending before any authority under any provision of the GST Act. 1.6 The application is, therefore admitted. Submission of the Applicant 2.1 The applicant is engaged into the business as a provider of Digitalisation and Monitoring of Mega Schemes; Enhancer of the Jalmitra application; Digitization of the Piped Water Supply schemes; Collection, Scanning and Digitization of printed distribution drawings along with development of a GIS tool; Relevant Data management, analysis and documentation; Organizing Orientation Programme for ISAs DPMU and Engineer Officers on Functionality Assessment along with Evaluation of performance under Support Activities of JJM; and other technical consultancy services relating to water distribution networks for Directorate of Public Health Engineering across West Bengal. The ap....
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....e than 7 lakh samples are tested for Physical, Chemical (Arsenic, Fluoride Salinity etc.) and Bacteriological imports and immediate action is taken for remedy of any water quality related issue. The West Bengal Public Health Engineering Department is focused on delivering safe and reliable drinking water to rural households through a comprehensive network of piped water supply schemes. This initiative is part of a larger national effort under the Jal Jeevan Mission (JJM), launched by the Central Government in 2019. The primary goal of JJM is to provide Functional Household Tap Connections (FHTCs) to every rural household by 2024, ensuring access to potable water in adequate quantity and quality. 2.2 Technological Integration To effectively manage this extensive undertaking, the department has integrated advanced technologies into its operations. PHED has implemented a digital asset management system to oversee the extensive number of existing PWSS. This system provides access to textual, locational, and pictorial information through satellite images, enabling efficient area identification and management for informed decision-making. Applications, encompassing both mo....
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....ion timelines. 2.4 Geo-Referenced Surveys One of the primary service areas of the applicant involves conducting Geo-Referenced Surveys using mobile applications and/or instruments such as Total Station, Dumpy level, and DGPS. These instrumental surveys are carried out at locations including Water Treatment Units and Pump Houses to demarcate areas and create maps. The surveys, with or without applications, facilitate the collection of data and information on PWSS asset mapping (such as-Pump Houses, Overhead Reservoirs, Stand-alone treatment units etc.) and household surveys with locational and functional details of the tap connections. Surveys conducted with applications allow for seamless data integration into the digital Management Information System (MIS) through data synchronization. Conversely, in cases where applications are not used, locational information is manually captured and entered into the system. These surveys encompass not only point data collection but also the delineation of paths or alignments within the network system. 2.5 Data Management, Analysis and Documentation All these operations and functions necessitate comprehensive reporting and documentat....
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....f the initiative, detailing the responsibilities, processes, and technological infrastructure required for efficient monitoring and management. 1. Mobile Application for Scheme Monitoring Objective: The creation of a dedicated mobile application for use by PHED officials to streamline the monitoring and reporting process for various tasks and components related to water supply schemes. This app will facilitate real-time data entry and photo documentation, with updates required at regular intervals. Key Features: • Real-Time Progress Updates: The mobile application will allow designated division and department authorities to update the physical progress of various tasks associated with a scheme. Updates, including photographs and detailed descriptions for each component, must be provided every seven days to ensure continuous monitoring. • SMS Alert System: To reinforce accountability, an SMS alert system will be integrated into the app. If progress is not captured within the stipulated time frame (seven days), automatic SMS alerts will be generated and sent to the concerned officials. For instance, if the progress for the "Bewa Water Suppl....
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....ng the exact locations of scheme components, while Gantt charts will highlight timelines and dependencies across different tasks. Actionable Steps: 1. Customize the web dashboard to reflect G5-Mega Schemes' progress. 2. Ensure data integration from the mobile app for real-time tracking. 3. Provide training to relevant personnel on using the dashboard effectively. 3. Data Preparation and GIS Integration Objective: To prepare and update the base data required for visualizing water supply scheme components and alignments using Geographic Information System (GIS) technology. This will provide a comprehensive spatial representation of each scheme, enhancing the monitoring and planning process. Key Features: • Conversion of AutoCAD/WaterGems to GIS: The design data for water supply schemes, typically prepared in AutoCAD, will be converted into shapefiles that can be used for GIS mapping. This will include data entry, modification, and correction to ensure accurate spatial representation of scheme components. • Layer Preparation and Uploading: The following layers will be prepared and uploaded into the web module fo....
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....ect outcomes, contributing to the overall success of the Jal Jeevan Mission in West Bengal. 2.7 Enhancement of the Jalmitra application to facilitate comprehensive functionality assessment of household tap connections, Maintenance, Upgradation & Modification of the Android and Web Module (3012/RS dt. 03.12.2024) Scope of Work: 1. Introduction and Background: The Public Health Engineering Department (PHED), Government of West Bengal, is at the forefront of ensuring the successful implementation of the Jal Jeevan Mission (JJM). As part of this mission, the department has achieved significant milestones by providing Functional Household Tap Connections (FHTCs) to approximately 90 lakh rural households. However, the continuous monitoring and functionality of these connections remain critical. Challenges such as inadequate water sources, improper design of distribution systems, and malpractices have surfaced, necessitating a robust solution to ensure the reliability of FHTCs and mitigate public grievances. To address these challenges, PHED proposes to enhance the existing Jal Mitra application to include functionality assessment pages for both mobile and web platforms. This ....
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....ports on FHTC functionality at multiple administrative levels: I. District-wise II. Block-wise III. Gram Panchayat (GP)-wise IV. Village-wise • Category-wise Representation: The reports will categorize FHTCs based on their functionality (e.g., fully functional, partially functional, non-functional). This categorization will help in identifying priority areas for intervention. 4.2 Comparative and Analytical Reports • Error Identification: The dashboard will be equipped to generate comparative reports, identifying errors or inconsistencies in functionality assessments across different time periods or regions. Analytical tools will flag potential discrepancies in data, helping decision-makers to focus on areas requiring revaluation. • Trend Analysis: The system will allow for the analysis of trends over time, enabling the identification of recurring issues in specific geographic areas or pipeline systems. The extension of the Jal Mitra mobile and web applications to include functionality assessment of FHTCs is a critical step towards ensuring the long-term success of the Jal Jeevan Mission. By in....
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....n managing scheme drawings. * Incorporation of new features and modifications as per directions from the Engineer-in Chief (EIC). * Integration with other modules and dashboards used by the PHED Department for streamlined workflow and data management. 2. Digitization and Uploading of Layout Plans The project will involve the digitization of layout plans received from divisions/sub-divisions into .dwg and .kml formats and subsequent uploading into the Scheme Drawing and Litholog Module of the WBJJM Dashboard. This will include: • Georeferencing and structuring layout drawings to meet PHED and WBJJM standards. • Ensuring compatibility with GIS tools and integration with other government mapping platforms. 3. Uploading of kml Files to PM Gati Shakti Portal A key aspect of the project is the systematic uploading of .kml files with attributes specified by the Government of India into the PM GatiShakti Web Portal. This will involve: • Using the user ID and password or API credentials provided by the department. • Entering scheme-related metadata and associated information as required by PM GatiShakti standa....
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....e length of pipe line to be surveyed, a tentative length of distribution system based on the type of scheme and the region has been considered as per the table below. PWSS Type Approximate Length considered for Hill Region in Km. Approximate Length considered for the rest of the state in Km. Ground Water 25 75 Mini-PWSS 10 25 Surface Water based PWSS having less than 11 villages 15 125 Surface Water based PWSS having 11 -100 villages 50 250 Surface Water based PWSS having greater than 100 villages 100 800 Based on the above table the district wise tentative length of pipe line to be surveyed, Street Stand posts and Headwork Sites and Pump Houses to be surveyed have been calculated and summarised below. The estimate for this work has been made based on these values. District MALDAH NADIA UTTAR DINAJPUR Total No. of PWSS 234 236 317 No. of Ground Water based PWSS 59 30 48 No. of Mini-PWSS - - - No. of Surface Water based PWSS having less than 11 villages - - - No. of Surface Water based PWSS having 11 -100 villages 1 - - No. of Surface Water based PWSS h....
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....a Web-GIS platform for managing, monitoring, and sustaining water supply services. The Unique Tap Water ID (UTWID) initiative aims to enhance post-implementation monitoring, service delivery, and grievance redressal under the Jal Jeevan Mission (JJM) in rural West Bengal. This system will integrate household data with geographic and demographic details through a Web-GIS platform, ensuring efficient management and accountability. In another perspective, this initiative will enable better planning, resource allocation, and equitable water distribution, ensuring that every household benefits from accurate, transparent, and sustainable water supply services. Significance & Benefits: 1. Accurate Data Management - Geo-fencing and OTP validation ensure reliable household data. 2. Enhanced Service Delivery - UTWID Card will provide key details such as connection date and grievance contacts. 3. Efficient Resource Utilization - Web-GIS tagging enables better monitoring of water distribution. 4. Transparency & Accountability - Linking UTWID with Aadhaar and household data minimizes discrepancies. 5. Real-time Monitoring - Digital validation e....
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....€¢ Data Validation and Quality Control: Tools for backend teams to verify and clean data before final approval. • Analytics and Reporting: Generate real-time reports on data collection progress and quality metrics. 2.11 Upkeepment and Hosting of WhatsApp bot Platform to Optimize Data Accessibility, Enhanced Service Delivery and Operational Efficiency, Public Health Engineering Department (PHED), Govt. of West Bengal (1439/RS dt. 03.07.2025) Scope of Work: The upgradation will involve technical, functional, and infrastructural enhancements, as detailed below: 1. Programmable Messaging Infrastructure • Provision of programmable messaging services through a certified cloud communications platform (e.g., Twilio and Meta Business API) that supports: • High-volume, real-time interactions • Smart session handling and query management • Scalable cloud-hosted deployments. • Ensure robust support for multi-language interfaces and natural language input. • Facilitate automated delivery of structured replies, media (PDFs, images), and reports. 2. Mobile Network Maintenance and Connectiv....
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....i. Vendors (material requisition, order tracking) • Voice-to-Text Input Support: Integration of voice messaging interpretation, particularly beneficial in low-literacy zones. • Interactive Menus and Quick Replies: Guided menu options for first-time users (e.g., "Type 1 for FHTC Status, 2 for Scheme Info"). • Integration with Jal Mitra App and WBJJM-Dashboard: Cross-platform data syncing and mutual referencing between systems. • Sentiment Analysis: Track user sentiment to assess satisfaction and identify grievance hotspots. 6. User Feedback • If the automated reply or response to a query does not meet the user's requirements, the system should allow the user to log their feedback for further refinement and enhancement of response accuracy. • A dedicated database should be maintained for these feedback submissions to facilitate improved machine learning and optimization of the Al platform. 2.12 Organizing Orientation Programme for ISAs DPMU and Engineer Officers on Functionality Assessment (Jal Mitra Application application web & mobile) along with Evaluation of performance under Support Activitie....
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....ent, 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. Nil Nil For brevity, for any services to be exempt from the GST tax net under sl. no. 3 above, the said services must satisfy the following conditions:- 1. It must be a pure service, 2. It must not be a works contract service or other composite supply of services involving transfer of goods, 3. It must be provided to Central Government, State Government or Union territory or local authority, 4. It must be an 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 Now, given the facts of the instant case, the applicant submits that as per the details of the potential works to be undertaken by the applicant along with work orders enclosed above, the instant supply to the various divisions of the PHED Department are nothing but ....
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.... 3. Submission of the Revenue 3.1 The concerned officer from the revenue has not expressed any view on the merit of the issue raised by the applicant. 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. 4.2 The applicant is stated to have been awarded several contracts related to water distribution networks from Public Health Engineering (in short PHE) Directorate, Government of West Bengal for its various divisions. The following work orders are claimed to have been received by the applicant from PHE Directorate. All the work orders are placed on records. 4.3 Work order for digitalisation and monitoring of Mega Schemes; enhancing the Jal Mitra application; digitization of the Piped Water Supply schemes; collection, scanning and digitization of printed distribution drawings along with development of a GIS tool; relevant data management, analysis and documentation; organizing Orientation Programmes for Implementation Support Agencies (in short ISAs) of District Project Management Unit (in short DPMU) and Engineer Officers on....
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....e classification and the rate of tax? 4. In case where the answer to question No 2 is in negative, what shall be the classification and the rate of tax? 4.5 Before going into the details of the discussion, 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 GST 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 responsibil....
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.... sections, and in particular, of the Scheduled Castes and the Scheduled Tribes. 28. Public distribution system. 29. Maintenance of community assets. Article 243W: This Article of the Constitution 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 i....
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....t of the mission. JJM looks to create a jan andolan for water, thereby making it everyone's priority". Jal Mitra Programme: It is a part of Nal Jal Mitra Programme (NJMP) initiated by the Central Government. To ensure the long-term sustainability of the in-village water schemes under the Jal Jeevan Mission, it is imperative to have a sufficiently large pool of skilled human resources available at the local level. The aim of the Jal Mitra Programme is to provide skill-based trainings to local persons from villages, to equip them with a comprehensive set of skills & develop "Nal Jal Mitras", so that they can function as scheme operators and are able to carry out minor repairs and maintenance, including preventive maintenance, of the piped water supply scheme(s) in their village. 4.6 The applicant has referred to Notification No. 12/2017 - Central Tax (Rate) dated 28.06.2017 as amended. The relevant portion of the notification is reproduced as under: Sl.No. Chapter, Section, Heading, Group or Service Code (Tariff) Description of Services Rate (per cent.) Condition (1) (2) (3) (4) (5) 3 Chapter 99 Pure services (excluding works contract serv....
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....stions referred to in the application are supported by work orders issued by the PHE Directorate of Government of West Bengal. From the details of the work orders placed before us we find following eight kinds of works have been allotted to the applicant: A) Comprehensive works for digital transformation and monitoring of mega schemes of the PHE Directorate of Government of West Bengal which inter alia includes designing and developing data collection tool through mobile application and up-gradation and modification thereof, field data collection by surveyor and data preparation in GIS platform and updating base data for visualising water supply scheme components. B) Enhancement of the Jalmitra application to facilitate comprehensive functionality assessment of household tap connections and maintenance and upgradation and modification of the android and web module. C) Digitisation of the transmission and distribution system and all assets of piped water supply schemes converting them to Keyhole Markup Language (.kml) files for uploading in the Pradhan Mantri Gati Shakti portal, along with digitization, preparation and upload of lithologic drawings rece....
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....ly manage this extensive programme the PHE Directorate has integrated advanced technologies into its operations. For this purpose the directorate has implemented digital asset management system to oversee the progress of the work undertaken by it. The utilisation of GIS tools and analysis of WebGIS data plays a crucial role in respect of data management. The work orders referred to here are related to this aspect of functioning of the PHE Directorate and also for organising orientation programmes for stakeholders. All these activities are related to development of software and application of certain software. There is no supply of goods in any form. 4.9 After the detailed study of the above work orders we are of the considered view that these work orders do not represent any kind of works contract or composite supplies having any supply of goods involved in them. The services can be regarded as pure services. As such, these services can be regarded as Pure Service and qualifies for exemption under serial no. 3 of Notification No. 12/2017-Central Tax (Rate) Dated 28.06.2017, as amended on the following grounds: i) Those are Pure Services. ii) No works contract s....