In re Uttarakhand Peyjal Sansadhan Vikas (GST AAR Uttarakhand)
In the case of “In re Uttarakhand Peyjal Sansadhan Vikas (GST AAR Uttarakhand),” the core issues revolve around the applicability of the Reverse Charge Mechanism (RCM) concerning services provided by Uttarakhand Peyjal Sansadhan Vikas Evam Nirman Nigam to THDC India Limited. This ruling also explores whether these services fall under forward charge, who bears the tax liability, and the entitlement to Input Tax Credit (ITC) on the GST deposited.
Context and Background: The applicant, Uttarakhand Peyjal Sansadhan Vikas Evam Nirman Nigam, a local authority constituted under a notification from the Uttarakhand Government, is engaged in the construction and erection of government schemes related to water supply and sewerage. In this specific case, they entered into a Memorandum of Understanding (MOU) with THDC India Limited, a Public Sector Undertaking (PSU), for constructing an overhead water tank in the THDC colony in Rishikesh.
Applicant’s Submission: The applicant presented several key points:
1. They are recognized as a local authority, supported by their PAN card details.
2. The service receiver, THDC, being a PSU, does not fall under the definition of Centre/State Government per GST norms.
3. The MOU indicates that the specific transaction does not qualify the applicant as a local authority for this case, thereby treating the service as a composite supply by any contractor under GST.
