In re Dehradun Smart City Limited (GST AAR Uttarakhand)
The case concerned an application filed by Dehradun Smart City Limited (DSCL) before the Uttarakhand Appellate Authority for Advance Ruling under the CGST and SGST Acts. DSCL sought rulings regarding its status as a Governmental Authority, the GST exemption available for its services in relation to a Smart City ESCO project, the characterization of supplies under a tripartite agreement, and whether it functioned as a pure agent for GST valuation purposes.
DSCL was incorporated as a Special Purpose Vehicle (SPV) under the Smart Cities Mission for implementing smart city projects in Dehradun. Its objectives included planning, funding, implementing, monitoring, and managing smart city development projects, along with carrying out functions delegated by the State Government and municipal authorities.
The dispute arose from an ESCO-based energy efficiency project involving a tripartite agreement between DSCL, Uttarakhand Jal Sansthan (UJS), and M/s GCKC Projects and Works Private Limited. The project involved supplying, installing, operating, and maintaining energy-efficient pumping systems, automation infrastructure, and SCADA systems for Dehradun’s water supply network.
Under the ESCO model, energy savings generated through efficiency measures formed the basis for payments. The arrangement provided for compulsory savings equivalent to 10% of baseline energy consumption and additional savings beyond this threshold. UJS transferred the measured energy savings amount to DSCL, which retained certain portions while remitting the contractor’s contractual share.
