In re Telangana State Technology Services Limited (GST AAAR Telangana)
The Telangana Authority for Advance Ruling (AAR) addressed the GST liability of Telangana State Technology Services Limited (TSTSL), a public sector undertaking, concerning e-procurement transaction fees. TSTSL, acting as a fund manager for the IT E&C Department of the Telangana government, sought clarification on whether the e-procurement transaction fees collected on behalf of the government constituted a supply under the GST Act and if these services were exempt under Notification No. 12/2017. The AAR ruled that the e-procurement transaction fees did constitute a supply and that TSTSL was liable to pay GST on these fees. It also determined that the services provided by TSTSL did not fall under the exemption provided in Notification No. 12/2017, as the exemption pertained to services provided by the government, not services provided to the government.
TSTSL appealed the AAR’s ruling, arguing that the services should be exempt. However, during the personal hearing, TSTSL’s representatives clarified that they had been paying GST on these services since inception and had no dispute regarding the liability. Consequently, the Appellate Authority upheld the AAR’s original ruling. The ruling clarifies that services provided by entities like TSTSL to the government, particularly in e-procurement, are subject to GST and do not fall under the government service exemptions. The fact that the appellant was already paying GST on the services, and did not dispute the ruling, resulted in the appeal being dismissed.
Read AAR Order: GST payable on e-procurement services provided to Government
FULL TEXT OF THE ORDER OF APPELLATE AUTHORITY FOR ADVANCE RULING,TELANGANA
