No GST Exemption on GIS-based property survey and mapping services to Municipal Bodies: AAR

The applicant, Sthapatya Consultants (India) Private Limited, is a private company engaged in providing technical consultancy services, particularly GIS-based property survey and mapping services, to municipal corporations. The applicant has submitted that their services are focused on supporting Municipal Corporations and Municipal Councils across Maharashtra in various technical and administrative tasks related to property management and taxation.

Firstly, the applicant assists these local bodies by conducting surveys of properties, assigning property numbers, measuring the properties, and collecting the necessary data in order to evaluate the taxation as per the act.

Secondly, the applicant supports the computerization of property tax data. This includes digitizing property records, creating computerized layouts or plans, and linking digital photographs of properties to their respective records.

Thirdly, the applicant offers advanced technical services such as GIS-based mapping, drone imaging, and GIS based data management. These GIS-based tools are particularly useful for logical mapping, data visualization, and spatial analysis.

Additionally, it is clarified that the term “Government of India” in this context is used in a broader sense. It not only includes the Central Government but also extends to all State Governments and local self-governing bodies such as Municipal Corporations, Municipal Councils, and even Gram Panchayats. Thus, the services rendered to any of these entities fall within the scope of support to the “Government of India.”

Questions Asked by Applicant

The Sthapatya Consultants (India) Private Limited filed an application under Section 98 of the CGST Act, 2017 and the Maharashtra Goods and Service Tax Act, 2017

1. Whether the services provided by the applicant are covered under Clause 1 & 2 of the twelfth Schedule of Article 243W?

2. Whether the Services provided by the applicant fall under the Exemption Notification NO. 12/2017 dated 28th June, 2017 (Entry No. 3 of Exemption Notification) as amended from time to time, as the services are in the nature of pure labor services.

What did Maharashtra GST-ARA say?

Maharashtra Authority for Advance Ruling has given the following answer (Under Section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017):

Answer 1: No, the services provided by the applicant are not covered under Clause 1 & 2 of twelfth Schedule of Article 243W

Answer 2: No, the services provided by the applicant do not fall under the Exemption Notification No. 12/2017 dated 28th June, 2017 (Entry No. 3 of the Exemption Notification) as amended from time to time, as the services are not in the nature of pure labor services.

For official ruling refer to the PDF given below