In Re: M/s. PDCOR LIMITED,
GST
2018 (9) TMI 1334 – AUTHORITY FOR ADVANCE RULING, RAJASTHAN – 2018 (17) G. S. T. L. 445 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING, RAJASTHAN – AAR
Dated:- 25-8-2018
RAJ/AAR/2018-19/13
GST
NITIN WAPA AND SUDHIR SHARMA MEMBER
Present for the applicant: Mr. Subhash Sharma (CFO) and Mr. Manmohan Mahipal (CA) Authorised Representative
Note: Under Section 100 of the CGST/RGST Act 2017, an appeal against this ruling lies before the Appellate Authority for Advance Ruling constituted under section 99 of CGST/RGST Act 2017, within a period of 30 days from the date of service of this order.
The Issue raised by M/s PDCOR LIMITED (hereinafter referred as the applicant also) is fit to pronounce advance ruling as it falls under ambit of the Section 97 (2) (a), it is given as under:
(b) applicability of a notification issued under the provisions of this Act;
(e) determination of the liability to pay tax on any goods or services or both;
Fu
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relation to “Rejuvenation of Amanishah Nallah (Dravyavati River), Jaipur”. The agreement between TATA Projects Ltd. and JDA was executed on 18th of March, 2016.
(d) In this instant case, the applicant is concerned whether the PMC services to JDA for Rejuvenation of Amanishah Nallah (Dravyavati River), Jaipur will attract GST or will be exempt from GST as per Serial No. 3 of CGST Notification No. 12/2017 dated 28th of June, 2017?.
Further, the applicant wants the authority to clarify whether their services for the concerned project will be under SAC 9983 and fall under Serial No. 3 or any other entry of CGST Notification No. 12/2017 dated 28th of June, 2017.
The applicant also wants to know whether JDA is a Local Authority Governmental Authority or Governmental Entity.
2. Scope of the works in Contract:
PDCOR shall act as Project Management Consultant (PMC) for the Project and shall be responsible for overall management of all components of the Project on technical, financial and
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nts. The reviewed and/or modified drawings will then be released for construction at site. The design/drawing shall cover the following:
a. Topography survey, L-sections and cross section of nallah.
b. Hydraulic design of nallah section sufficient to discharge the highest flood generated by rain over a 100 years recurrence period.
c. Comprehensive drawing of main nallah channel showing the proposed structures check dams, de-silting walls, crossing strictures and access road etc.
d. Hydraulic design of intercepting sewer system
e. Campus plan of sewerage treatment plants
f. Design and drawings of Sewerage Treatment Plants of proposed technology including unit sizing, hydraulic and process design.
g. Design and drawings of collection sumps and pump houses for sewerage and drainage
h. Process design, system design for all project components
i. Site Plans and layout plans.
j. Architectural drawings/ renderings of required project components such as stone railing, garden benches,
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d plumbing, service roads, landscaping, area lighting, etc.
t. Master plan for the development with landscaping and master plan of reclaimed area of land
u. Any other design and drawings required to complete the project by contractor as described in the Section Employer's Requirements.
4. The applicant's contention is that;-
4.1 The Jaipur Development Authority is covered under the status of Governmental Authority:
Definition of Governmental Authority: As per the notification no. 32/2017-Central Tax (Rate) dated 13.10.2017, Government Authority means an authority or a board or any other body Including a Society, Trust, Corporation,
(i) Set up by an Act of Parliament or State Legislature, or,
(ii)Established by any Government with 90per cent or more participation by way of equity or control,
to carry out a function entrusted by the Central Government, State Government, Union Territory or a local authority.
Since, Jaipur Development Authority set up by an act of State
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PDCOR Ltd is correctly classified under SAC Code 9983?
(b) Whether Jaipur Development Authority falls under the definition of Local Authority or Governmental Authority or Government Entity?
(c) Whether the aforementioned services being provided by M/S PDCOR Ltd. in the above case are exempted from Goods and Service Tax under the serial number 3 of CGST Notification No. 12/2017 Central Tax (Rate) dated 28th June 2017, applicable w.e.f 01.07.2017, as amended from time to time and corresponding Raj. GST Notification issued by Government of Rajasthan?
(d). Whether the services rendered by PDCOR Ltd are covered under any other entry of the Notification No. 12/2017 Central Tax (Rate) dated 28th June 2017 and corresponding Raj. GST Notification issued by Government of Rajasthan or any other notifications/rules under GST law ?
7. Comments of Jurisdictional Officer:-
The Jurisdictional Officer (CGST Division-H, Jaipur) in his comments vide letter F.No. V(GST-H) 30/Report-Comments/40/2018/
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9
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8.2 (a) As per definitions given under notification No. 12/2017-Central Excise (Rate) dated 28th June 2017 as amended vide notification No. 32/2017- Central tax (rate) dated 13.10.2017, “(zo “Governmental Authority” has the same meaning as assigned to it in the Explanation to clause (16) of Section 2 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017). Explanation as mentioned in clause (16) of Section 2 of the Integrated Goods and Services Tax Act, 2017 is as under:-
Government Authority means an authority or a board or any other body Including a Society, Trust, Corporation
(i) set up by an Act of Parliament or a State Legislature; or
(ii) established by any Government, with 90per cent, or more participation by way of equity or control, to carry out any function entrusted to a Municipality under article 243 W of the Constitution or to a Panchayat under article 243 G of the Constitution,
(b) Jaipur Development Authority is a body constituted under Jaipur Deve
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asthan, or a nominee of the Governor during President's Rule;
(iii) Secretary to the Government, Urban Development and Housing Department;
(iv) Jaipur Development Commissioner (appointed under this Act);
(v) Chairman, Rajasthan Housing Board;
(vi) Chief Engineer, Public Health Engineering Department;
(vii) Chief Engineer, Public Works Department;
(viii) District Collector, Jaipur;
(ix) Chief Engineer, Rajasthan State Electricity Board;
(x) Chairman/Administrator, Municipal Council, Jaipur;
(xi) Zila Pramukh of Zila Parishad, Jaipur District;
(xii) Chief Town Planner, Rajasthan; and
(xiii) Non-official members, not exceeding seven, to be nominated by the State Government];
(d). As per Section 90 of the said Act. Control by State Government.-
(1) The Authority shall exercise its powers and perform its duties under this Act in accordance with the policy framed and the guidelines laid down, from time to time by the State Government for development of the areas
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ing as to whether the service provided by them to the JDA is exempted vide entry S.No.3 for Notification No. 12/2017Central Excise (Rate) dated 28th June 2017 which reads as under:-
“Pure services (excluding works contract service or other composite supplies involving supply of any goods) provided to the Central Government, State Government or Union territory or local authority or a Governmental authority by way of any activity in relation to any function entrusted to a Panchayat under article 243G of the Constitution”.
The Jurisdictional Officer (CGST Division-H, Jaipur) in his comments has stated that the applicant's PMC services to JDA in the project are covered under SAC Code 9983. Further, they have stated that JDA is a local authority as per serial no. 2 in chapter -II of the JDA Act. They have also stated that services provided by the M/s. PDCOR are exempt from GST under serial no. 3 of CGST Notification 12/2017 Central Tax (Rate).
From the scope of services provided by t
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