Architect & PMC Services for Fire Station Project Held Exempt as “Pure Services” Under GST

The applicant, M/s Sachin Gandhi & Associates, entered into a contract with the Ahmedabad Municipal Corporation (AMC) for providing consultancy services, including the preparation of drawings, designs, and supervision for the construction of staff quarters at various fire stations in Ahmedabad.

The applicant sought an advance ruling on whether these services are exempt from GST under Serial No. 3 of Notification No. 12/2017-Central Tax (Rate), which provides exemptions for “pure services” provided to a local authority in relation to functions entrusted to a municipality under Article 243W of the Constitution.

Issue Before AAR: Whether the construction of staff quarters for fire personnel within the premises of a fire station constitutes a service in relation to “Fire Services” and thus qualifies for GST exemption.

AAR’s Ruling: The Gujarat Authority for Advance Ruling (AAR) ruled in favor of the applicant, holding that the services are exempt from GST. The Authority observed that fire services are emergency services that require personnel to be available 24/7. Relying on CAG reports and the Standing Fire Advisory Committee (SFAC) recommendations, the AAR noted that providing staff quarters within fire station premises is a mandatory requirement to ensure the efficiency of fire services.

Therefore, the construction consultancy for these quarters is directly related to the “Fire Services” function entrusted to the municipality under Article 243W. The AAR confirmed that since the applicant provides “pure services” to a local authority for a constitutional function, the exemption applies.

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