TaxTMI 
TaxTMI 
2025 (1) TMI 1829
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....cation issued under the provisions of the Act. * Determination of the liability to pay tax on any goods or services or both. BRIEF FACTS 2. Applicants Background: 2.1 The applicant M/s. Indian Oil-Adani Gas Private Limited, 2nd Floor, Lounge 1, Crossroads Elite-Court, Eastern Express Bypass, Margao, South-Goa 403602 is a registered taxable person and holds GSTIN _30AADC13938D1Z1. The Applicant is engaged in the business of developing City Gas Distribution (CGD) infrastructure to supply Piped Natural Gas (PNG) and Compressed Natural Gas (CNG) to household, commercial and industrial sectors. 2.2 The applicant taxpayer is seeking through the advance ruling for the purpose of determination of the following questions: CLARIFICATION REQUIRED ON THE BELOW POINTS: 2.3 Whether GST on permission charges, reinstatement charges, road cutting charges and ground rent charges levied by Goa PWD authorities is to be paid under reverse charge by IOAGPL in terms of Serial No. 5 of Notification No. 13/2017- Central Tax (Rate) dated 28-06-2017 ? 3. INTERPRETATION OF LAW AND / OR FACTS BY APPLICANT Notification No. 13/2017 Central Tax (Rate) dated 28 June 2017 3.1 At ....
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....tory or local authority to a business entity excluding, (1) renting of immovable property, and (2) services specified below- (i) services by the Department of Posts and the Ministry of Railways (Indian Railways); (ii) services in relation to an aircraft or a vessel, inside or outside the precincts of a port or an airport; (iii) transport of goods or passengers. Central Government, State Government, Union territory or local authority Any business entity located in the taxable territory. 3.7 7 In light of the above notification, the services supplied by the Central Government, State Government, Union territory or local authority to the business entity located in the taxable territory are liable for payment of GST under reverse charge mechanism. 3.8 Herein, it is pertinent to analyse whether the PWD authorities would qualify under the meaning of the term Central Government, State Government, Union territory or local authority. 3.9 As per section 2(53) of the CGST Act, 2017 "Government" has been defined to mean the Central Government. Further, Goa Goods and Services Tax Act, 2017 defines 'Government' to mean the Govern....
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....tate Government means the Governor or the officer's sub-ordinate to him who exercises the executive powers of the state vested in the Governor and in the name of the Governor. Does Public Works Department (PWD) qualifies as 'Government'? 3.11 Public Works department is responsible for the construction and maintenance of public infrastructure such as roads, bridges, buildings, and water supply systems. The PWD department operates under different government bodies in India i.e. under Central and State government. 3.12 At Centra! level, Central Public Works Department (CPWD) is responsible for the construction and maintenance of a variety of buildings and infrastructure projects, including government buildings, hospitals, schools, roads, bridges, and airports pertaining to Central Government. 3.13 Further, at State level, different State Governments have established Public Works Department focusing on infrastructure projects within the State, which may include state highways, district roads, government offices, and other public buildings. Central Public Works Department (CPWD): 3.14 The Central PWD operates under the Ministry of Housing and Urban Affairs ....
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....blic Works Department, and many others. 3.21 State Public Works Department is one of the departments of State government which is entrusted with all the developmental activities like planning, design, construction, operation and maintenance of all types of construction works in the State of Goa. 3.22 State Public Works Department aims to promote the government's objectives of economic development good governance and raising living standard and prosperity. It is one of the key departments entrusted with works of planning, designing, construction & maintenance of three major government sectors: a. Water supply & Sanitation; b. National highways, Roads & Bridges c. Building 3.23 Following are the programmes which are under the State Public Works Department: (1) Building Works : Functional and Non-functional (2) Roads and Bridges. (i) State Programmes. (ii) Centrally Sponsored programmes. (iii) National Highways. (iv) Western Ghat Development programme. (3) Water Supply and Sanitation (i) State Programmes. (ii) Centrally Sponsored programmes. (4) Electrical ....
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.....2 "Government Entity", as per Section 2(zfa) of the Notification No. 12 of 2017- Central Tax (Rate) dated 2806.2017, means an authority or a board or any other body including a society, trust, corporation, (i) set up by an Act of Parliament or State Legislature; or (ii) established by any Government, with 90%. or more participation by way of equity or control, to carry out a function entrusted by the Central Government, State Government, Union Territory or a Local Authority." The Public Works Department, Haryana is a Department of the State Government, established by the State Government, with the state having full control over its functioning and is carrying out functions entrusted by the State Government. Thus, the Public Works Department, Haryana is a Government Entity as per the definition of Government Entity as contained under Section 2(zfa) of the Notification No. 12 Of 2017- Central Tax (Rate) dated 28.06.2017. 3.29 In view of the above and taking cognizance of the fact that CPWD qualifies as 'Central Government' where the administration and functioning is headed by Director General, who is also the Principal Technical Advisor to the G....
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....cation. PERSONAL HEARING 4. Shri Yash Agarwal, Ld. Chartered Accountant of M/s. Ernst & Young LLP along with Shri Shrey Ahuja and Shri Abhishek Jyoti, Ld. Chartered Accountants from the Applicant Taxpayer & Shri Sachin Pathare, DGM of applicant taxpayer, duly authorized representatives of applicant appeared on behalf of the applicant for personal hearings held on 06/06/2024 and on 29/08/2024 before this Authority and reiterated the points deliberated in written submissions made along with advance ruling application. 5. DISCUSSION AND FINDINGS 5.1 We have carefully perused the Advance Ruling Application, all enclosures and all other submissions on record. 5.2 In the present case, from the submissions made by the authorized representatives of the applicant taxpayer and the copies of documents placed on record, it is clear that there are two different transactions/supplies involved as mentioned below. 1) The first transaction/supply is between the applicant Company and the Public Works Department (P.W.D.), Government of Goa. In this transaction, the applicant Company is a registered taxable person having GSTIN and is the recipient of the services and the P.W.D.....
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....cord as Annexure 12 by the applicant from the page nos. 63 to 95 of the paper book. 5.7 The Authorized representative of the applicant taxpayer contented that P.W.D., Govt. of Goa is charging them GST @18% and the applicant company is also paying GST under RCM thus amounting to double taxation. 5.8 Normally, once the question posed by applicant taxpayer is answered in this ruling as in affirmative, there was no need to go into further details. But in view of arguments by applicant of double taxation it has come out that this advance ruling is likely to be used for stopping reimbursement of GST suffered by P.W.D. while getting road reinstatement work done. Hence, the need arises for providing clarity in this ruling. 5.9 On careful consideration of all the facts brought on record by the applicant, it is seen that there is no double taxation as argued by the applicant. 5.10 As discussed earlier, there are two distinctly separate transactions involved between separate sets of parties on the issue. In the first transaction, there is no doubt that the applicant Company which is the recipient of services has to discharge GST liability of RCM basis. 5.11 In the second transa....