In Re: M/s. Visvesvraya National Institute of Technology, Nagpur
GST
2018 (8) TMI 976 – AUTHORITY FOR ADVANCE RULINGS MAHARASHTRA – 2018 (15) G. S. T. L. 737 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULINGS MAHARASHTRA – AAR
Dated:- 20-6-2018
GST-ARA-45/2017-18/B-52
GST
SHRI B.V. BORHADE, AND SHRI PANKAJ KUMAR, MEMBER
PROCEEDINGS
(under section 98 of the Central Goods and Services Tax Act; 2017 and the Maharashtra Goods and Services Tax Act, 2017)
The present application has been filed under section 97 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017 [hereinafter referred to as “the CGST Act and MGST Act”] by VISVESVARAYA NATIONAL INSTITUTE OF TECHNOLOGY, NAGPUR, the applicant, seeking an advance ruling in respect of the following question connected to the issues mentioned in para 02 below :
Whether Rate of Tax on Pure services (excluding works contract service or other composite supplies involving supply of an
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17:
For the purposes of this clause, the expression “governmental authority” means an authority or a board or any other body,-
(i) Set up by an Act of Parliament or a State Legislature; or
(ii) Established by any Government,
with ninety per cent or more participation by way of equity or control, to carry out any function entrusted to a municipality under article 243W of the Constitution;
2) Statement of Relevant Facts having a bearing on the Question No. 2:-
Notification No. 12/2017- Central Tax (Rate) dated 28th June, 2017
G.S.R…..-(E) In exercise of the powers conferred by sub-section (1) of section 1 1 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby exempts the intra-State supply of services of description as specified in column (3) of the Table below from so much of the central tax leviable thereon under sub-section (
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ction 2 of the Integrated Goods and Services Tax Act, 2017
3. Statement containing the applicant's interpretation of law and/or facts in respect of aforesaid question(s):
Statement containing the applicant's interpretation of law and/or facts in respect of aforesaid Question No. 1:
Visvesvaraya National Institute of Technology, Nagpur is one of the thirty one National Institutes of Technology in the country. The Govt. of India conferred on the Institute, the Deemed to be University status (under University Grants Commission Act, 1956 (3 of 1956)) with effect from 26th June 2002.
Subsequently, the Central Govt. by an Act of Parliament (National Institutes of Technology Act, 2007 (29 of 2007)) declared VNIT Nagpur as an Institute of National Importance along with all other NITs. The Act was brought into force from 15th August 2007. The prime objective of establishing the institute was to impart quality technical education throughout the country and foster national integration
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r facts in respect of aforesaid Question No. 2:
Visvesvaraya National Institute of Technology, Nagpur receives various Pure services (excluding works contract service or other composite supplies involving supply of any goods) like Security Services, Manpower Services, Gardening Services, Hygiene maintenance, Ground maintenance etc from outside Service Providers.
As per Notification No. 12/2017- Central Tax (Rate) dated 28th June, 2017, the mentioned the meaning of “Governmental authority” has the same meaning as assigned to it in the Explanation clause (16) of section 2 of the Integrated Goods and Services Tax Act, 2017.accordingly Visvesvaraya National Institute of Technology, Nagpur is Governmental Authority as per Explanation to clause (16) of section 2 of the Integrated Goods and Services Tax Act, 2017, being set up under and Act of Parliament, viz, NIT Act 2007.
Further, Article 243G of the Constitution covers “Education, including primary and secondary schools”
Thus VNIT Nagp
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f institute of national importance and is governed by THE NATIONAL INSTITUTE OF TECHNOLOGY ACT. 2007 which is enacted by the Parliament in the year 2007. The applicants name is mentioned in The Schedule of the said Act, The Act has been enacted by Parliament so as to provide a common statutory framework for all NIT. These NIT are the institutes fully funded bay Central Government and granted deemed university status.
The applicant (VNIT) was previously regional engineering college a joint venture of Central and State Government. In the year 2003 these REC were rechristened as National Institute of Technology and granted deemed university status and taken over as fully funded institute of Central Government. The Government afterwards passed the National Institute Technology Act, 2007 (29 of 2007) which is enacted According to the Enacted act the applicants name is included in the schedule of the act (in the list of central institutions incorporated into the Act),
As per section 13 of
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made contentions for admission of application as per their written submission.
However, it was pointed out to Shree Sachin S Jagdale, that as they were recipient of service and not service provider and these services are not under reverse charge mechanism, the is not maintainable in view there of and is liable for rejection.
During hearing, Sh. A.B. Ahirkar, Dy. Commissioner of State Tax, (NAG-VAT-E-005) LTU-4, Nagpur Jurisdictional Officer appeared and made written submissions and orally stated that the application is liable for rejection as they are recipient.
05. OBSERVATIONS
1) We find that in the present application as per submissions made before us, the applicant is recipient of service and not service providers and also that these services are not under reverse charge mechanism. The notification as referred by them, is applicable to provider of service and not recipient of service. The present applicant being recipient of service and not service provider is not the proper p
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