In re Arinem Consultancy Services PVT LTD (GST AAR Uttar Pradesh)
Q-1 We hold that the Services rendered under the Contract with State Urban Development Agency, Uttar Pradesh (SUDA) , and for PMAY are in relation to Functions Entrusted to Municipalities under Article 243 W and to Panchayats under Article 243 G of the Constitution of India.
Ans-1 Such services would Qualify as Pure Service (excluding works Contract Service or other Composite Supplies involving Supply of any Goods)” and accordingly exempt from the payment of GST duty Covered in SI. No 3 of Notification No. 12/ 2017 Central Tax (RATE) , DATED 28th June , 2017 issued under Central Goods and Services Tax Act, 2017 (CGST / Act), And Corresponding Notification issued under Uttar Pradesh Goods and Services Tax Act, 2017 (UPGST Act).
FULL TEXT OF THE ORDER OF AUTHORITY OF ADVANCE RULING,UTTAR PRADESH
ORDER UNDER SECTION 98(4) OF THE CGST ACT, 2017 & UNDER SECTION 98 (4) OF THE UPGST ACT, 2017
1) M/s Arinem Consultancy Services (P) Ltd, Akash-2, 31, Gokhale Marg, Lucknow, 226001 (here in after referred to as the applicant) is a registered assessee under GST having GSTN: 09AAFCA8049P1ZZ.
2) The Applicant has submitted application for Advance Ruling dated 17.03.2021 enclosing duly filled Form ARA-01(the application form for Advance Ruling) along with certain annexure and attachments.
3) The Applicant in his application sought Advance Ruling as follows : –
i. Whether preparation of ‘Detailed Project Report’ (DPR) and providing Project Management Consultancy (PMC) services for projects under Beneficiary Led Construction in Lucknow Cluster under Pradhan Mantri Awas Yojna (Urban) under an agreement with State Urban Development Agency (SUDA) would fall under activities in relation to function entrusted to Panchayat or Municipality under Article 243G or Article 243W respectively, of the Constitution of India?
ii. If answer to question is yes, then,
Whether such services provided by the applicant would fall under “Pure Services (excluding works contract service or other composite supplies involving supplies of goods)” as provided in serial number 3 of Notification No. 12/2017-Central Tax (Rate) dated 28 June, 2017, issued under Central Goods and Services Tax Act, 2017 (GGST) and corresponding Notification No. KA.NI.-2-843/XI-9 (47)/17-UP. Act-1-2017-order-(10)-2017 Lucknow, dated 30 June, 2017, issued under Uttar Pradesh Goods and Service Tax Act, 2017 (UPGST Act), where the project cost includes the cost of service rendered along with reimbursement of cost of procurement of goods for rendering such services and thus, be eligible for exemption from levy of CGST and UPGST, respectively?
4) As per the declaration given by the applicant in Form ARA-01, the issue raised by the applicant is neither pending in any proceedings nor decided in any proceedings in the applicant’s case under any of the provisions of the CGST Act, 2017/UPGST Act, 2017.
5) The applicant has submitted that there is an agreement between the applicant and SUDA. As per the agreement the applicant has to perform the work of preparation of ‘Detailed Project Report’ (DPR) and of providing ‘Project Management Consultancy’ (PMC) services for Project under Beneficiary Led Construction in Lucknow cluster under Pradhan Mantri Awas Yojana (Urban).
6) The applicant in their application of advance ruling has further submitted as under:-
(i) State Urban Development Agency (SUDA) was formed and registered under ‘Societies Registration Act, since 20-11-1990.
(ii) SUDA was established by U.P.Government with hundred per cent participation by way of equity or control, to carry out any function entrusted to a municipality under article 243W of the Constitution.
(iii) Functions entrusted to Panchayats as laid down under section 243G of the Constitution of India are mentioned as follows:-
“Subject to the provisions of this Constitution, the Legislature of a State may, by law, endow the Panchayats with such powers and authority as may be necessary to enable them to function as institutions of self-government and such law may contain provisions for the devolution of powers and responsibilities upon Panchayats at the appropriate level, subject to such conditions as may be specified therein, with respect to-
(a) the preparation of plans for economic development and social justice;
(b) the implementation of schemes for economic development and social justice as may be entrusted to them including those in relation to the matters listed in the Eleventh Schedule.”
(iv) Functions of Municipality as laid down under section 243W of the Constitution of India are mentioned as follows:-
“Subject to the provisions of this Constitution, the Legislature of a State may, by law, endow,-
(a) the Municipalities with such powers and authority as may be necessary to enable them to function as institutions of self government and such law may contain provisions for the devolution of powers and responsibilities upon Municipalities, subject to such conditions as may be specified therein, with respect to,-
(i) the preparation of plans for economic development and social justice;
(ii) the performance of functions and the implementation of schemes as may be entrusted to them including those in relation to the matters listed in the Twelfth Schedule;
(b) the Committees with 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.”
(v) The extracts of Notification No. 12/2017-Central Tax (Rate) dated 28 June, 2017 are as follows:
Table
