In re Damodar Valley Corporation (GST AAR Jharkhand)
Question: Whether Damodar Valley Corporation is covered under the definition of the term ‘Government’ Entity as per Notification No. 32/2017 – Central Tax (Rate) dated 13/10/2017 and Notification No. 31/2017 – Central Tax (Rate) dated 13/10/2017?
Answer – Damodar Valley Corporation shall be covered under the definition of – Government Entity in terms of Notification No. 11/2017- Central Tax (Rate), dated the 28th June, 2017 [as amended by Notification No. 31 /2017-Central Tax (Rate) dated 13.10.2017] / Notification No. 12/2017- Central Tax (Rate), dated the 28th June, 2017 [as amended by Notification No. 32/2017-Central Tax (Rate) dated 13.10.2017].
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, JHARKHAND
The present application has been filed under Section 97(1) of the Central Goods and Services Tax Act, 2017 and the Jharkhand Goods and Services Tax Act, 2017 [hereinafter referred to as “the CGST Act and JGST Act”| by Damodar Valley Corporation, 106-A, Administrative Building, Ground Floor, Area No. 6, Maithon, Dhanbad – 828207, Jharkhand, the applicant, seeking an advance ruling in respect of the following questions:-
(a) Whether “Damodar Valley Corporation” is covered under the definition of the term ‘Government’ Entity as per Notification No. 32/2017 – Central Tax (Rate) dated 13/10/2017 and Notification No. 31/2017 – Central Tax (Rate) dated 13/10/2017?
2. At the outset, we would like to make it clear that the provisions of both the CGST Act and the JGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the JGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST Act/JGST Act would be mentioned as being under the “GST Act”.
HEARING
3. The case was taken up for preliminary hearing on 04.03.2022 with respect to admission or rejection of present application wherein Shri Harsh Gadodia, Chartered Accountant attended the proceeding physically and Shri Bihari Choudhary, Manager- Finance, DVC attended the proceeding through Video Conferencing and made submissions as per contentions made in Application for Advance ruling. The application was admitted being questions related to ‘applicability of a notification’ and final hearing was concluded accordingly on the same date Shri Harsh Gadodia, Chartered Accountant, made oral contentions as per details contained in their application.
OBSERVATIONS
4. We have gone through the facts of the case, documentary evidences like copies of Notifications, Memorandum of Agreement, Damodar Valley Corporation Act, 1948, Damodar Valley Corporation (Amendment) Act, 2011 submitted by the applicant. We find that the applicant is registered under Goods and Services Pax (‘GST’) Act, 2017. As per their submission they are engaged in 3 major activities namely generation, transmission and distribution of electricity/ flood control and irrigation, and some connected activities like soil conservation, afforestation etc. They have submitted, among others, that,-
(i) DVC Act, 1948 urns passed by the Central Legislature, requiring the three Governments namely the Central Government and the Stale Government of West Bengal ami Bihar (vow Jharkhand) to participate jointly for the purpose of budding a Damodar Valley Corporation with the aim of development of Damodar valley falling within the stale of West Bengal and Jharkhand. ‘Participating Governments’, according to clause (4) of section 2 of the DVC Act means the Central Government, the Provincial Government, of Bihar, and the Provincial Government of West Bengal.
(ii) The term ‘Government entity’ has been defined in paragraph – 4 of the Notification No. 11/2017- Central Tax (Rate), dated the 28th June, 2017 [as amended by Notification No.31/2017-Centrat Tax (Rate) tinted 13.10.2017] and paragraph – 2 of the Notification No. 12/2017- Central Tax (Rate), dated the 28th June, 2017 [as amended by Notification No. 32/2017-Central Tax (Rale) dated 13.10.2017] as under:-
Government Entity means an authority or a board or any other body including a society, trust, corporation,
(i) set up by an Act of Parliament or Stale Legislature; or
(ii) established by any Government, with 90 per cent or more participation by way of equip/ or control, to carry out a function entrusted by the Central Government; State Government, Union Territory or a local authority.
(iii) Notification No. 12/2017- Central Tax (Rate), dated the 28th June, 2017 has been amended from time to lime and entry serial number 9C has been inserted vide Notification No.32/2017-Central Tax (Rate) dated 13.10.2017 winch, for the sake of conveniences, is reproduced below:
