In Re: Shri Dhananjay Kumar Singh
GST
2019 (2) TMI 64 – AUTHORITY FOR ADVANCE RULINGS, CHHATTISGARH – 2019 (21) G. S. T. L. 219 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULINGS, CHHATTISGARH – AAR
Dated:- 5-12-2018
STC/AAR/06/2018
GST
SHRI S.K. BUXY AND SHRI RAJESH KUMAR SINGH, MEMBER
PROCEEDINGS
[U/s 98 of the Chhattisgarh Goods & Services Tax Act, 2017 (hereinafter referred to as CGGST Act, 2017)]
Sub:- Chhattisgarh GST Act, 2017 – Advance Ruling U/s 98 – Regarding the GST rates applicable in case of supply of services to Solid waste management, Garbage Collection, Disposal, Water Supply, Cleaning of Colony.
Read:-Application dated 08-09-2018 from Shri Dhananjay Kumar Singh, H.N -13, Sanyasi Para, Khamtarai, Raipur, Chhattisgarh 492001
PROCEEDINGS
[U/s 98 of the Chhattisgarh Goods & Services Tax Act, 2017 (hereinafter referred to as CGGST Act, 2017)]
No. STC/AAR/06/2018
Raipur, Dated 05/12/2018
The applicant M/s. Dhananjay Kumar Singh HN 13, Sa
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ead tank), cleaning of common area of residential area developed by Chhattisgarh Housing Board and not handed over to the local authority for its maintenance. The applicant is providing all those services to the CGHB that a local authority usually provides to the common resident under their jurisdiction. There are certain localities which are developed by CGHB for which maintenance work is given to contractor till they are handed over to the local authority.
II. The applicant sought Advance Ruling (AAR) on whether the services provided in relation to solid waste management, water supply operations, garbage collection door to door and disposal, cleaning of colony i.e. garden, street and open area, drainage system, sewerage cleaning of water tank (all UG Sump & Over head tank), cleaning of common area of residential area developed by Chhattisgarh Housing Board and not handed over to the local authority by Chhattisgarh Housing Board (CGHB) are exempt, under as per notification no. 12/20
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“Government entity”.
III. Further CGHB is also engaged in performing various functions required to be performed by Municipality under article 243W of the Constitution like slum improvement, up gradation and also facilities like solid waste management, Water supply for domestic purpose etc. till the time the developed areas are officially handed over to the local authority for maintenance.
IV. The above view is supported by the recent judgment in case of M/s. Vinod Kumar Panday, Raipur O/A No. BHO-EXUS-002APP-037-17-18 dated 03.05.2017 passed by Hon. Commissioner (Appeals) Raipur where the appellate authority held that the CGHB is covered under the definition of Government Authority for the purpose of Notification No. 25/2012 dated 20.06.2012.
V. The Definition of Government authority under service tax regime is also produced below as defined in Notification No. 25/2012 dated 20.06.2012 and as amended from time to time.
“Governmental authority” means an authority or a board or a
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(CGHB) is exempt under as per notification no. 12/2017 dated 28th June 2017 as updated and amended time to time. However, in case they are not covered under the said exemption notification, the applicant has sought clarification as regards the applicable rate of GST for the above services rendered by them.
4. Personal Hearing:-
In keeping with the established principles of natural justice, personal hearing in the matter was extended to the authorized representative of the applicant and accordingly, Shri Ramandeep Singh Bhatia (CA) appeared before us for hearing on 30.10.2018 and reiterated their contention. They also furnished a written submission dated 30.10.2018, which has been taken on record.
I. The applicant has quoted the judgment of M/s. The Nursery Men Co-operative Society, Lalbagh, Lalbagh Double Gate Road, Bengaluru, Karnataka in case no. KAR ADRG 18/2018, order dated 06-08-2018 = 2018 (9) TMI 1037 – AUTHORITY FOR ADVANCE RULINGS, KARNATAKA as pronounced by Authority fo
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nicipality. Hence exempt under as per notification no. 12/2017 dated 28th June, 2017
5. The legal position, Analysis and Discussion:-
5.1 The provisions for implementing the CGST Act and CGGST Act, 2017 are similar. Now we sequentially discuss the provisions that are applicable in the present case.
Notification No. 12/2017-state Tax (Rate) No. F-10-43/2017/CT/V(80), Naya Raipur, Dated 28.06.2017, Serial No. 3, Chapter 99 reads as under:-
Sl.No.
Chapter, Section, Heading, Group or Service Code (Tariff)
Description of Services
Rate (per cent)
Condition
3.
Chapter 99
“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 Government 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 C
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pply of goods is involved herein along with provision of service, the work order issued by Chhattisgarh Housing Board has been verified. The applicant has shown the nature work order to be solely provision of services, and no supply of goods has been mentioned. This gets further clear from the invoices submitted to the Chhattisgarh Housing Board. Thus it is evident from the work order itself that the same is solely for provision of service and no supply of good is involved.
Following two points needs ascertainment in order to determine the applicable tax rate on the impugned services to be provided by the applicant:-
i. Whether the Authority issuing work order to the applicant i.e. Chhattisgarh Housing Board is an established 'Governmental Board' under State or Central Government or not; and
ii. Whether the service supplies to be provided by the applicant falls under public utility services enumerated under 12th schedule, Article 243W of the Indian Constitution or not.
5.4 In thi
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minent in the field of Housing, Engineering Architecture of Town Planning to be appointed by the State Government.
(h) Housing Commissioner;
5.5 Thus it gets amply clear that Chhattisgarh Housing Board is a “Government Authority” as per No. 12/2017-State Tax (Rate) No. F-10- 43/2017/CT/V(80), Naya Raipur, Dated 28.06.2017 and as amended by Notification No. 31/2017-State Tax (Rate) No. F-10-82/2017/CT/V(146), Naya Raipur, Dated 13.10.2017.
“(ix) “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 (ID established by any Government,;) with 90 percent. or more participation by way of equity or control, to carry out an)' function entrusted or a Municipality/ under article 243 W of the Constitution or to a Panchayat under article 243 G of the Constitution.
Thus Chhattisgarh Housing Board is a Government Authority fully owned by the State Government.
5.6 Now for arriving at a decision as to whether
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th such powers and authority as may be necessary to enable them to carry out the responsibilities conferred upon them including those in relation to the matters listed in the Twelfth Schedule
APPENDIX-3
Twelfth Schedule [Article 243W of the Constitution (Seventy-Fourth Amendment) Act, 1992]
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. Pro
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t, water supply operation, garbage collection door to door and disposal, cleaning of colony i.e. garden, street and open area, drainage system, sewerage, water tank (All UG Sump & Overhead Tank), cleaning of common area in multistoried building, etc. and all other related work pertaining to operation and maintenance.
The service supply to be provided by the applicant by their very nature appear to fall in the list of services enumerated under serial no. 5, 6, 8, 10, 12 and 17 of 12th schedule of Article 243W of the Indian Constitution, thus qualifying the admissibility criterion. It has also been categorically stated by the applicant that the said services to be provided to Chhattisgarh Housing Board does not involve any transfer/sale of any goods. Services specified under serial no. 3, chapter 99 of Notification No. 12/2017-State Tax (Rate) No. F-10-43/2017/CT/V(80), Naya Raipur, Dated 28.06.2017 provides exemption, as under :-
“Pure services (excluding works contract service or ot
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terms of Notification No. 12/2017-State Tax (Rate) No. F-10-43/2017/CT/V(80), Naya Raipur, Dated 28.06.2017, Serial No. 3, Chapter 99 :-
(i) Supply of Services of Colony maintenance work to C.G. Housing Board Colony, Sector 29, Naya Raipur with regard to solid waste management, water supply operation, garbage collection door to door and disposal, cleaning of colony i.e. garden, street and open area, drainage system, sewerage, water tank (All UG Sump & Overhead Tank), cleaning of common area in multistoried building, etc. and all other related work pertaining to operation and maintenance will be treated as exempt supply as per notification No 12/2017-State Tax (Rate) No. F-10-43/2017/CT/V(80), Naya Raipur, Dated 28.06.2017, Serial No. 3, Chapter 99.
(ii) The aforesaid exemption is not available in case any transfer of property in goods involved therein or if the said service is provided to persons other than State Government, Central Government or a local Authority or a Governmental
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