In re Ajit Babubhai Jariwala (GST AAR Gujarat)
1. Whether the ‘Architectural Consultancy Service’ provided by the applicant to Surat Municipal Corporation for construction of SMIMER Hospital & College Campus is covered under entry no. 3 of notification No. 12/2017-Central (Rate) dated 28.6.2017 & thus is exempt?
The ‘Architectural Consultancy Service’ provided by the applicant to Surat Municipal Corporation [SMC] for construction of SMIMER Hospital & College Campus is covered under entry no. 3 of notification No. 12/2017-Central (Rate) dated 28.6.2017 & thus is exempt from GST.
2. If the exemption under entry no. 2 of the notification No. 12/2017-Central (Rate) dated 28.6.2017 is applicable to the applicant, accordingly will the ‘pure services’ provided by a sub contractor to the applicant also be covered under the said exemption? Or if the applicant provides sub contract of pure services to another contractor of the SMC will the exemption be available to the applicant provided that the exemption is available to the direct contractor of SMC?
(i) In view of the findings listed in para 21 supra, we refuse to answer the question as to whether the exemption under entry no. 3 of the notification No. 12/2017-Central (Rate) dated 28.6.2017 would be applicable to the sub-contractor of the applicant, if the same is available to the applicant.
(ii) If the applicant provides sub contract of pure services to another contractor of the SMC the supply would not fall within the ambit of entry no. 3 of the notification No. 12/2017-Central (Rate) dated 28.6.2017 and would be leviable to GST.
3. If the entry number 3 of the notification No. 12/2017-Central (Rate) dated 28.6.2017 is not applicable to the applicant then accordingly the services provided by the applicant will be taxed under which HSN/SAC code and the rate of tax thereof?
Since the first question is answered in affirmative, the third question becomes infructuous.
FULL TEXT OF THE ORDER OF AUTHORITY FOR ADVANCE RULING, GUJARAT
Ajit Babubhai Jariwala (Trade Name : Tathastu Architects), Bungalow No. 12, Ashoknagar Cooperative Housing Society, Nr. Gokulam Dairy, Athwalines, Surat, Gujarat 395 002 [for short —*applicant] is registered under GST and their GSTIN is 24AAZPJ4554B1ZM.
2. The applicant is engaged in providing a wide range of professional consulting services viz architecture, engineering (MEPF), planning, urban design, landscape, sustainability, research and art, building design, interior design, surveying, environmental sciences, project management and project economics.
3. The applicant has been granted work order no. 84/1.2.2022 and 172/22.1.2021 to provide architectural consultancy service to Surat Municipal Corporation [for short — SMC], regarding the project namely SMIMER Hospital & College Campus & further to prepare architectural and working drawings as required for the construction of the project.
4. It is the applicant’s averment that SMC, the recipient of the service, has contended that SMIMER Hospital and College is covered under the 12′ Schedule of Article 243W of the Constitution of India & is thus exempt, in terms of entry no. 3 of notification No. 12/2017-Central (Rate), it being a pure service. Contra- the applicant however states that according to them, their services would be covered under entry no. 21 of notification No. 11/2017-Central Tax (Rate) & is liable to GST @ 18%.
5. The applicant’s next contention is that if the activity is exempt as contended by the SMC, then the same exemption should also be available to the sub-contractors of the said pure service. To substantiate this contention the appellant has also relied upon the below mentioned rulings viz
