In re Centre For Entrepreneurship Development Madhya Pradesh (CEDMAP) (GST AAR Madhya Pradesh)
it is evident that the work order is not issued by Jila Panchayat as claimed by the Applicant but has been issued by M.P. DAY Rajya Gramin Ajivika Mission. Therefore, services shall be deemed to be have been provided to M.P. DAY Rajya Gramin Ajivika Mission. It is not covered in the definition of local authority. Now, it is to be examined whether M.P. DAY Rajya Gramin Ajivika Mission is covered under governmental authority or government entity.
In this regard the applicant has been asked to submit the constitution of M.P. DAY Rajya Gramin Ajivika Mission so as to examine whether it is covered under governmental authority or government entity.
However, the applicant’s could not give requisite information about constitution of M.P. DAY Rajya Gramin Ajivika Mission and how the Exemption is available to the applicant under entry no. 3 to Notification No. 12/2017-Central Tax (Rate). dated 28th June 2017
Considering the Argument and submission by the Applicant in respect of the question number 1 raised before this authority, it is ruled that the Applicant is not eligible to get benefit covered under the entry no 3 of Exemption Notification No. 12/2017-Central Tax (Rate). dated 28th June 2017 for the work order for which ruling has been asked for.
This Authority rules that the Applicant is liable to pay Goods & Service Tax on the work order for which ruling has been asked for.
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. M/S CENTRE FOR ENTREPRENEURSHIP DEVELOPMENT MADHYA PRADESH (CEDMAP) (hereinafter referred to as the Applicant) is an. autonomous not for profit. registered society under Department of Micro. Small and Medium Enterprises. Government of Madhya Pradesh. The Applicant is having a GST registration with GSTIN 23AAAAC0450DIZO.
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 he mentioned as being under the GST Act.
3. BRIEF FACTS OF THE CASE —
3.1. Centre for Entrepreneurship Development MP. Bhopal (hereinafter referred to as “CEDMAP– or “the Applicant–) is established as a Society. registered under Ml’ Societies Registrikaran Adhiniyam. 1973 and having its Head Office at 16-A. Arera Hills, Bhopal 462011 (MP).
3.2. The applicant is registered under the MPGST/ CGST Act 2017 vide GSTIN-23AAAAC0450D1ZO.
3.3. CEDMAP is an autonomous, not for profit, registered society under Department of Micro, Small and Medium Enterprises. Government of Madhya Pradesh. Principal Secretary of the Department of Micro Small & Medium Enterprises, Government of Madhya Pradesh is the Chairman of the governing body of CEDMAP.
3.4. CEDMAP has been formed with objective of —
– To search. encourage & identify and select potential entrepreneurs and develop them for setting up tin’s. rural. small or medium ventures.
– To provide training and instruction in all aspects of setting up: running a venture to potential and existing entrepreneurs, educate unemployed, low income and under-privileged groups.
– To conduct various training programmes for entrepreneurs. educated unemployed, women, low income groups and under privileged group.
– CEDMAP has received a work order from Jila Panchayat. Singrauli under Madhya Prades1).Deendayal Antyodaya Yojana, State Rural Livelihood Mission. Panchayat & Rural Development Department, Govt. of MP for providing Skill ‘Training to the youth in the district of Singrauli in Tourism and Hospitality, Healthcare, Retail. IT-ITES and Construction sector.
4. QUESTION RAISED BEFORE THE AUTHORITY —
The below questions have been formed in relation to the services being provided by applicant to the recipients :
4.1. Whether work order received by the applicant from the Jila Panchayat. Singrauli under Madhya Pradesh Deendayal Antyodaya Yojana. State Rural Livelihood Mission. Panchayat & Rural Development Department. Govt. of M.P. for providing Skill Training to the youth in the district of Singrauli in Tourism and Hospitality. Healthcare. Retail. IT-ITES and Construction sector is covered under Entry No. 3 of Exemption Notification No. 12/2017-Central Tax (Rate). dated 28th June 2017 ?
4.2. Whether the Goods & Service Tax is payable on work order received by the applicant from Jila Panchayat, Singrauli under Madhya Pradesh Deendayal Antyodaya Yojana, State Rural Livelihood Mission. Panchayat & Rural Development Department, Govt. of M.P. for providing Skill Training to the youth in the district of Singrauli in Tourism and Hospitality. Healthcare. Retail. IT-ITES and Construction sector ?
5. DEPARTMENT VIEW POINT – .
The Joint Commissioner(Tech), CGST & Central Excise, Bhopal vide letter F.No.IV(16)Adv/GST/ TECH/BPL/2020 dated 20.10.2020 submitted the views as under :-
(i) It appears that the work order received to the applicant from the Jila Panchayat, Singruali under Madhya Pradesh Din Dayal Antyoday Yojna, State Rural Livelihood Mission Panchayat & Rural Development, Government of Madhya Pradesh for providing skill training to the youth in the district of Singrauli in Tourism and Hospitality, Healthcare, Retail, IT-ITES and construction Sector is covered under the entry No.3 of Exemption Notification No. 12/2017-Central Tax (Rate). dated 28th June 2017 if they fulfil the conditions of said Notification.
(ii) The Deen Dayal Yojna & State Rual Livelihood mission both are being operated by Panchayat & Rural Development of government of Madhya Pradesh which have issued the work order to M/s CEDMAP for skill training to the youth in the district of Singrauli in Tourism and Hospitality, Healthcare, Retail IT-IES and construction sector. The said services provided by M/s CEDMAP to Jila Panchayat, Singrauli will be exempted.
(a) If the services provided are covered under “Technical training and vocational education” at point No.18 of functions entrusted to a Panchayat under article 243G of the Constitution,
(b) and the services provided are “Pureservice”(excluding works contract service or other composition supplies involving supply of any goods) as mentioned in Notification No. 12/2017-Central Tax (Rate). dated 28th June 2017.
RECORD OF PERSONAL HEARING –
6.1 Shri Navneet Garg. CA appeared on behalf of the applicants for personal hearing on electronic mode on 20.08.2020 and he reiterated the submissions 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-Central Tax (Rate). dated 28th June 2017. He also sought to submit copies of certain documents and requested that the same may he taken on record. Accordingly. the documents submitted have been taken on record for consideration.
6.2. The applicant is a service provider.
6.3. The applicant is registered under MP Societies Registrikaran Adhiniyam, 1973 and its Governing board is the apex body and is presided over by Principal Secretary of the Department of Micro, Small & Medium Enterprises. Government of Madhya Pradesh.
6.3. The applicant is engaged in providing services to Government Departments. Local Authorities. Governmental Authorities and Government Entities by way of providing Skill Training to youth and develops them for Placement.
6.4. Notification No. 12/2017-Central Tax (Rate). dated 28th June 2017 contains Entry No. 3, which for the sake of convenience, is reproduced as under:-
