In re Sachin Gandhi & Associates (GST AAR Gujarat)
M/s Sachin Gandhi & Associates, registered under GST, sought an advance ruling from the Gujarat Authority for Advance Ruling (AAR) regarding the taxability of consultancy and project management consultancy (PMC) services provided to Ahmedabad Municipal Corporation (AMC) for the proposed construction of Danapith Fire Station, Staff Quarters, and Multi-Level Parking at the existing Old Danapith Fire Station, Ahmedabad. The applicant provided architectural, structural engineering, MEP consultancy, tender preparation, supervision, certification, and related services under a contract dated 13.11.2019.
AMC contended that the services constituted “pure services” provided to a local authority in relation to functions entrusted to a Municipality under Article 243W of the Constitution and were therefore exempt under Sr. No. 3 of Notification No. 12/2017-Central Tax (Rate). The applicant sought clarity on whether the services were exempt, and if so, whether GST already collected could be refunded. During personal hearing, it was clarified that staff quarters were meant for fire personnel and the project was ongoing.
The AAR examined three conditions under Entry 3 of the Notification: (1) services must be pure services excluding works contract or composite supplies involving goods; (2) services must be provided to Central/State Government, Union Territory, or local authority; and (3) services must relate to functions entrusted to a Panchayat under Article 243G or Municipality under Article 243W.
