2018 (12) TMI 894 – AUTHORITY FOR ADVANCE RULING, MAHARASHTRA – TMI – Levy of GST – consultancy services rendered to Municipal Corporation of Greater Mumbai (MCGM) for an upcoming project of establishment & development of textile museum in Mumbai – functions entrusted to a municipality under Article 243 W – pure services – whether the consultancy services as per details above would be exempt under N/N. 12/2017-Central Tax (Rate) dated 28.06.2018?
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Held that:- The applicant in their ARA have stated that Establishment and Development of a museum and recreation ground is not considered as a function entrusted to a Municipality under Article 243 of the Constitution. Since Establishment and Development of a museum and recreation ground is not a function listed in in the 12th Schedule to be read with Article 243 of the Constitution, the applicant has stated that in their view JJ is required to charge GST on consultancy services rendered to MCGM for the above project work, under GST la
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aharashtra 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 Act ] by SIR J.J. COLLEGE OF ARCHITECTURE CONSULTANCY CELL, the applicant, seeking an advance ruling in respect of the following issue: Whether applicant shall charge GST on the consultancy services rendered to Municipal Corporation of Greater Mumbai (MCGM) for an upcoming project of establishment & development of textile museum in Mumbai. At the outset, we would like to make it clear that the provisions of both the CGST Act and the MGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the MGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, a ref
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mprehensive Architecture service and project management service that includes architecture service and MEP design, reviewing tender document for inviting contractors, site supervision and certifying bills of contractors paid by MCGM. This project involves heritage restoration and adoptive reuse of various structures such as Textile Museum, Library bldg., back office for support staff, shopping area which would be leased out to various state government authorities for showcase of textiles, Auditorium, underground parking, Public Plaza – Landscape area, etc. d. As per notification no TPB 4312/789/CR-27/2013/UD-11 of the urban land department, the textile museum is treated as part of the recreational ground area and ancillary facilities of recreation like exhibition of textile related activities, fabrics machinery, processes, fashion show, souvenir shops, cafeteria, spill out zones, light & sound shows, etc. have been allowed to developed in the said area. Statement containing the app
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unicipality under article 243W of the constitution. b. This entry provides exemption from payment of taxes on pure services (excluding works contract service or other composite supplies involving supply of any goods) provided to central government, state government or union authority or local authority or a government authority by way of any activity in relation to any function entrusted to panchayat under article 243G of the constitution or in relation to any function entrusted to a municipality under article 243W of the constitution. c. In order to claim above mentioned exemption, the service provided to MCGM must be pure service i.e. no involvement of works contract. d. The agreement entered by JJ and MCGM has been registered after payment of stamp duty with government of Maharashtra under article 63/63 as work contact agreement as advised by MCGM. e. Moreover establishment & development of museum and recreation ground is not considered as function entrusted to municipality unde
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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 Government authority by way of any activity in relation to any function entrusted to a Panchayat under article 243G of the Constitution or in relation to any function entrusted to a Municipality under article 243W of the Constitution. Agreement made between J.J. College of Architecture Consultancy cell and Municipal Corporation of Greater Mumbai (MCGM) is under Article 63/ 63 Works Contract, so GST is applicable. Other information is enclosed herewith. (Annexure, Form no. ST-2) Copy of Article 63/63 Works contract agreement 04. HEARING The case was taken up for Preliminary hearing on dt. 08.08.2018 when Sh. Kushal Mehta, C.A. along with Sh. Sumesh Porwal, C.A. appeared and made written submissions and stated that they were not carrying authorization today and would be submitting the same at the earliest . Sh. Sanjay
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the Architecture Consultancy Cell of the applicant college has entered in to an agreement with the Municipal Corporation of Greater Mumbai (MCGM) to provide comprehensive architecture service and project management service that includes architecture service and MEP design, reviewing tender documents for inviting contractors, site supervision and certifying bills of contractors, paid by MCGM in respect of an upcoming project of establishment and Development of a Textile Museum in Mumbai. The project involves heritage restoration and adoptive use of various structures such as textile museum, library building, back office for support staff, shopping area to be leased out to various State Government authorities for showcase of textiles, Auditorium, underground parking, public plaza landscape area, etc. We also find that the applicant has stated that the agreement entered into by JJ and MCGM has been registered after payment of stamp duty with the Government of Maharashtra under Article 63/
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he applicant in their ARA have stated that Establishment and Development of a museum and recreation ground is not considered as a function entrusted to a Municipality under Article 243 of the Constitution. Since Establishment and Development of a museum and recreation ground is not a function listed in in the 12th Schedule to be read with Article 243 of the Constitution, the applicant has stated that in their view JJ is required to charge GST on consultancy services rendered to MCGM for the above project work, under GST laws. Thus in view of the above facts we are required to ascertain if the applicant s services are eligible for exemption as per the Serial No 3 of the Notification referred above. For this we are required to ascertain the exact services being provided in the present case by the applicant and also if Establishment and development of museum and recreation ground is a function entrusted to a municipality under Article 243 W of the Constitution. First of all we find that t
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se in relation to the matters listed in the Twelfth Schedule. We further find that the Twelfth Schedule (Article 243W of the Constitution (Seventy-Fourth Amendment) Act, 1992) reads as under: 1. Urban planning including town planning. 2. Planning of land- use and construction of buildings. 3. Planning for economic and social development. 4. Roads and bridges. 5. Water supply for domestic, industrial and commercial purposes. 6. Public health, sanitation conservancy and solid waste management. 7. Fire services. 8. Urban forestry, protection of the environment and promotion of ecological aspects. 9. Safeguarding the interests of weaker sections of society, including the handicapped and mentally retarded. 10. Slum improvement and up gradation. 11. Urban poverty alleviation. 12. Provision of urban amenities and facilities such as parks, gardens, playgrounds. 13. Promotion of cultural, educational and aesthetic aspects. 14. Burials and burial grounds; cremations, cremation grounds and electr
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itecture service and MEP design, reviewing tender document for inviting contractors, site supervision and certifying bills of contractors paid by MCGM. This project involves heritage restoration and adoptive reuse of various structures such as Textile Museum, Library bldg., back office for support staff, shopping area which would be leased out to various state government authorities for showcase of textiles, Auditorium, underground parking, Public Plaza – Landscape area, etc. However we find that the applicant has not provided the copies of contract, entered into by them with MCGM which would in detail give the exact nature of activities being done by them and which would be very crucial in deciding whether the services being provided by the applicant are in the nature of Pure Services or Works Contract Services. We find that the jurisdictional officer has submitted before us a copy of receipt of stamp duty paid for registration of contract between the applicant and MCGM wherein the co
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nt to be of the nature of Works Contract Services, we do not find the need to go into their other agreements in respect of claims of exemption under Sr.No. 3 of Notification No. 12/2017-CT(Rate) dated 28.06.2018, as pure services. 05. In view of the extensive deliberations as held hereinabove, we pass an order as follows : ORDER (Under section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017) NO.GST-ARA-54/2018-19/B-128 Mumbai, dt.12.10.2018 For reasons as discussed in the body of the order, the questions are answered thus – Question :- Whether applicant shall charge GST on the consultancy services rendered to Municipal Corporation of Grater Mumbai (MCGM) for an upcoming project of establishment & development of textile museum in Mumbai. Answer:- Answered in the affirmative in view of detailed discussions above. – Case laws – Decisions – Judgements – Orders – Tax Management India – taxmanagementindia – taxmanagement – taxmana
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