In re Atal Bihari Vajpayee Institute of Good Governance & Policy Analysis (GST AAR Madhya Pradesh)
The amount recovered by the applicant from other government departments for doing research work and study, which help them make policies or understand its impact, shall be exempt subject to satisfaction of conditions laid down under Entry No. 3 of Notification No 12/2017 CTR dated 28th June 2017. Meaning there by it has to be seen for each and every work, whether the Pure Services are provided to Central Government, State Government or Union territory or local authority or a Governmental authority or a Government Entity 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. Hence, if all the conditions laid down under entry no 3 of notification no 12/2017 CT (R) are satisfied then the amount recovered by the applicant from other government departments for doing research work and study, which help them make policies or understand its impact, shall be exempt.
FULL TEXT OF ORDER OF THE AUTHORITY OF ADVANCE RULING, MADHYA PRADESH
PROCEEDINGS
(Under sub-section (4) of Section 98 of Central Goods and Service Tax Act, 2017 and the Madhya Pradesh Goods & Service Tax Act, 2017)
1. The present application has been filed u/s 97 of the Central Goods and Services Act,2017 and MP Goods and services Act, 2017 (hereinafter also referred to CGST Act and SGST Act respectively) by M/s Atal Bihari vajpayee Institute of Good Governance & Policy Analysis (AIGGPA) (hereinafter referred to as the Applicant), registered under the Goods & Services Tax.
2. The provisions of the CGST Act and MPGST Act are identical, except for certain provisions. Therefore, unless a specific mention of the dissimilar provision is made, a reference to the CGST Act would also mean a reference to the same provision under the MPGST Act. Further, henceforth, for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST or MP GST Act would be mentioned as being under the GST Act.
3. BRIEF FACTS OF THE CASE:
3.1 Atal Bihari Vajpayee Institute of Good Governance & Policy Analysis (AIGGPA) is established as a Society, registered under MP Societies Registrikaran Act 1973.
3.2 The Institute is registered under the MPGST/ CGST Act 2017 vide GSTIN-23AADAA2879H1ZU.
3.3 Atal Bihari Vajpayee Institute of Good Governance & Policy Analysis is part of Department of Public Service Management Department, Government of Madhya Pradesh.
3.4 The Institute’s Governing Council is the apex body and is presided over by the Chief Minister of Madhya Pradesh. The Governing Body of the Institute comprises senior cabinet ministers from different departments of Government of MP, Chief Secretary and other Principle Secretaries. The Director General is the administrative and operational head. He is appointed by the Government of MP.
3.5 The Institute is registered u/s 12AA of the Income Tax Act 1961 since 01/04/2013, that exempts the Institute from income tax levies.
3.6 The AIGGPA is to act as a knowledge resource hub for promotion of good governance with the aim to;
i) facilitate a multi-disciplinary network of governance,
ii) to recognize and promote research, good practices, and overall improvement in practices of governance globally, with focus on Madhya Pradesh with the help of professionals, organizations/associations in the relevant areas.
3.7 To achieve these, the AIGGPA shall have the following objectives: –
(a) In the Global-Local context, to act as a ‘Think Tank’ in the field of good governance; to analyze the policies of government and to assess their impact on the target group.
(b) To analyze key issues in good governance, identify problems and to suggest solutions for them, develop action plans and support implementation of these plans.
(c) To create a bank of “Best practices”, methodologies and e-govemance programmes and their dissemination.
(d) To provide consultancy services towards improving the prevailing administrative system and required restructuring.
(e) To identify those areas for change and reform that will make the most positive impact in improving administrative performance and achievement.
(f) To provide institutional mechanisms to local, national and international institutions and stake-holders for people-centric administration.
(g) To provide technical support and advisory services to local bodies, states, national and international institutions in the areas of programme structuring and implementation, action research, change management and administrative reform.
(h) To conduct various courses related with Public Service Management.
(i) Capacity Building of non Government Organisations.
(j) Any other work assigned by the Governing Body and not covered in above objectives.
3.8 For achieving above said objectives, Institute undertakes impact evaluation research works and study for various government departments on the matter of good governance and policy analysis which helps such department to make review and improve the Policies take the appropriate decisions leading to the utmost benefit of the target beneficiaries.
For carrying on such research work institute engages experts of different domains, provide them all the requisite resources, and facilitate them remuneration and entitlements as per government rules. Such experts are hired from IIM, IIT, subject matter specialist from different fields and experienced retired senior officers.
4. QUESTIONS RAISED BEFORE THE AUTHORITHY:-
The below question have been formed in relation to the services being provided by applicant to the recipients:-
4.1 Whether the amount recovered by the applicant from other government departments for doing research work and study, which help them make policies or understand its impact, chargeable to GST?
4.2 Whether services provided by the applicant to other government department are covered under the entry No. 8 of Notification No. 12/2017 Central Tax (Rate) dated 28th June 2017?
5. CONCERNED OFICER’S VIEW P0INT:
The Joint Commisioner CGST & Central Excise, Bhopal vide letter No. F.No. IV(16)06/Advance Ruling/Tech/ BPL/2020 dated 05.03.2020 forwarded FAQ dated 24.08.2017 issued by the CBIC, New Delhi- wherein the department clarify applicability of GST in case of one Government/Local Authority provided . Services to other Government/local Authority in response to views called by the Authority of advance ruling on the application submitted by the Applicant.
6. RECORD OF PERSONAL HEARING:
Shree Navneet Garg CA & Shri Girish Trivedi, Chief Manager Finance appeared on behalf of the applicants for personal hearing on 05 02 2020 they reitrated the submission already made in the application and Annexure with the application and also submitted the written submission specifically mentioning the eligibility for exemption granted under entry No 3 of Notification no 12/2017 CT(R) dated 28th June, 2017. They also sought to submit copies of certain documents and requested that the same may be taken on record. Accordingly, the documents submitted have been taken on record for consideration.
7. DISCUSSIONS AND FINDINGS:
7.1 We have carefully considered the submissions made by the applicant in the application and also the documents submitted at the time of personal hearing. In view of above deliberations and on considering the various documents furnished by the applicant following are the findings. We proceed to examine the questions applied for by the applicant.
7.2 Coming to the first question; Whether the amount recovered by the applicant from other government departments for doing research work and study, which help them make policies or understand its impact, chargeable to GST? We need to dwell into the Exemption Notification No 12/2017 CTR dated 28th June 2017.
7.3 Applicant claims that it is covered under Two Entries i.e. Entry No 3 of Notification No 12/2017 CTR dated 28th June 2017. Let us now examine this entry:-
7.4 Notification No 12/2017 CTR dated 28th June 2017contains entry No 3, which for the sake of convenience, is reproduced as under: –
