No GST levied on services provided under the SUDA and PMAY contracts: AAR

The Uttar Pradesh Authority of Advance Ruling (AAR) determined that no GST would be levied on services provided under the State Urban Development Agency of Uttar Pradesh (SUDA) and the Pradhan Mantri Awas Yojana contracts (PMAY).

The appellant, M/s Arinem Consultancy Services (P) Ltd., sought an advance ruling on the question of whether the preparation of a “Detailed Project Report” (DPR) and providing Project Management Consultancy (PMC) services for projects under the Pradhan Mantri Awas Yojna (Urban) in the Lucknow Cluster under the Pradhan Mantri Awas Yojna (Urban) under an agreement with the State Urban Development Agency (SUDA) would fall under

The Uttar Pradesh Government formed the SUDA as a state-level nodal agency under the Department of Urban Employment and Poverty Alleviation, and it is obvious from the information in the Memorandum of Association that SUDA is a component of the state government of UP.

Vivek Arya and Abhishek Chauhan’s coram ruled that the services provided under the contract with the State Urban Development Agency of Uttar Pradesh (SUDA) and for PMAY are related to functions entrusted to Municipalities under Article 243W and Panchayats under Article 243G of the Indian Constitution. Such services would qualify as a Pure Service (excluding works contract service or other composite supplies involving the supply of any goods)” and thus be exempt from GST payment, as specified in SI. No. 3 of Notification No. 12/2017-Central Tax (Rate) dated 28 June 2017 issued under the Central Goods and Services Tax Act, 2017 (CGST/Act) and corresponding notifications issued under the Uttar Pradesh Goods and Services Tax Act, 2017 (UPGST/Act) (UPGST Act).