TaxTMI 
TaxTMI 
2026 (9) TMI 1351
X X X X Extracts X X X X
X X X X Extracts X X X X
....ud 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 both the Central Goods and Services Tax Act and the Tamil Nadu Goods and Services Tax Act (herein referred to as the Act) are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Services Tax Act would also mean a reference to the same provisions under the Tamil Nadu Goods and Services Tax Act. M/s Muthur Town Panchayat, Tiruppur (hereinafter referred to as Applicant), having place of business at Building no. 69, Muthur Town Panchayat, Kangeyam Road, Muthur, Tiruppur, Tamil Nadu-638105 has registered with GSTIN 33AAEAM1458M2ZF under the Goods and Services Tax Act for rendering Leasing Business and Works Contract. They have filed this application for advance ruling under Section 97 of the CGST Act, 2017, and corresponding provisions under the Section 97 of TNGST Act, 2017. The Applicant has made a payment of application fees of Rs. 10,000/- under sub rule (1) of Rule 104 of CGST Rules, 2017 and TNGST ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....pplier [Sec. 2(105)], taxable supply [Sec. 2(108)] and consideration [Sec. 2(31)] of the CGST Act, 2017 which are relevant to the advance ruling sought by them. 3.2 The applicant claims coverage under Sec. 7(2)(b) of the CGST Act, 2017 which reads as follows: (2) Notwithstanding anything contained in sub-section (1) (a) activities or transactions specified in Schedule II: or (b) such activities or transactions undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities, as may be notified by the Government on the recommendations of the Council, shall be treated neither as a supply of goods nor a supply of services. 3.3 Vide Notification No.14/2017-CT (Rate) dated 28.06.2017 as amended issued under the aforesaid Section, "Services by way of any activity in relation to a function entrusted to a Panchayat under Article 243G of the Constitution [or to a Municipality under article 243W of the Constitution]", is not a service. 3.4 The applicant claims that they are doing an activity (c) Planning for economic and social development covered under Art.243W as well as item no 22. Markets a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he administrative control of Centre. The concerned authorities of the Centre and State were addressed to report if there are any pending proceedings against the applicant on the issues raised by the applicant in the ARA application and for comments on the issues raised. Remarks have been received from the Centre/State Authorities that there are no pending proceedings on the questions raised in their Advance Ruling Application. 5. Personal Hearing 5.1 The applicant was given an opportunity to be heard in person on 21.07.2026. Shri. K. Sankaranarayanan, Advocate, appeared for personal hearing as the authorized representative (AR) of M/s. Muthur Town Panchayat, Tirupur. The AR reiterated the submissions made in their application for advance ruling and submitted copies of relevant notification/ legal provisions and earlier favorable Ruling by the TN AAR in the case of Kannivadi Town Panchayat. Further, he stated that the applicant's activities are specifically covered under Sec. 7(2)(b) of CGST Act, 2017 (treated as neither supply of goods nor supply of services) and Notification No.14/2017-CT(Rate) is superfluous. 6. Discussions and Findings: 6.1 We have carefully examined....
X X X X Extracts X X X X
X X X X Extracts X X X X
....es, as may be notified by the Government on the recommendations of the Council, shall be treated neither as a supply of goods nor a supply of services. 6.5 Sl. No.4 of Notfn. No. 14/2017-CT(Rate) dt.28.06.2017 issued under the aforesaid Section, reads as under: G.S.R ...... (E).- In exercise of the powers conferred by sub-section (2) of section 7 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council hereby notifies that the following activities or transactions undertaken by the Central Government or State Government or any local authority in which they are engaged as public authority, shall be treated neither as a supply of goods nor a supply of service, namely:- "Services by way of any activity in relation to a function entrusted to a Panchayat under article 243G of the Constitution." 6.6 Against the aforesaid legal backdrop, it is trite law that such activities undertaken by local authority in which they are engaged as public authority comprising of services in relation to a function entrusted to a Panchayat under Art.243G of the Constitution, will be treated as neither supply of service....