Pure service provided to government authority in relation of function entrusted to panchayat or Municipality are exempt

Pure service provided to government authority in relation of function entrusted to panchayat or Municipality are exempt

GOA AUTHORITY FOR ADVANCE RULING

The Question and Ruling as follows : 1. Whether the Project Management services provided by applicant to recipient would qualify as an activity in relation to function entrusted to Panchayat or Municipality under Article 243G or Article 243W respectively, of the Constitution of India 2. Would supervision fees received towards such services provided by the applicant qualify as “Pure services (excluding works contract service or other composite supplies involving supply of any goods)” as provided in serial number 3 of Notification No. 12/2017- Central Tax (Rate) dated 28 June, 2017[Notification No. FA-3-42/201711/v (53) dated 30 June 2017, as amended by Notification No. 2/2018-Central Tax (Rate) dated 25 January, 2018 issued under CGST Act, 2017 serial number 3 of Notification No. 9/2017 –Integrated Tax (Rate) dated 28.06.2017, as amended by Notification No. 2/2018 – Integrated Tax (Rate) dated 25.01.2018 and corresponding notifications issued under SGST Act [caption id="attachment_86471" align="aligncenter" width="601"] Pure service provided to government authority in relation of function entrusted to panchayat or Municipality are exempt[/caption] 3. Whether the applicant would fall under the definition of governmental authority or Government entity.

RULING

1. The services provided by the applicant appears to fall in the list of services enumerated under serial no. 6 of the 12th Schedule of Article 243W of the Indian Constitution, thus qualifying the admissibility criteria. 2. Supervision fees received towards such services provided by the applicant qualify as "Pure services (excluding works contract service or other composite supplies involving supply of any goods)" provided to a Governmental Authority by way of any activity in relation to any function entrusted to a Panchayat or Municipality under Article 243G or Article 243W of the Constitution of India and are exempted from CGST under SL No. 3 of the Notification No. 12/2017-Central Tax (Rate) dated 28th June, 2017 as amended and from SGST under Notification No. 38/1/2017- Fin(R&C)(12/2017-Rate) dated 30/06/2017 as amended. 3. The applicant falls under the definition of Governmental Authority or Government Entity clause (16) of section 2 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017) and amended vide Notification No. 32/2017 - Central Tax (Rate) dated 13/10/2017.