In re Rimita Mukherjee (GST AAR West Bengal)
In the case of Rimita Mukherjee (GST AAR West Bengal), the Authority examined whether technical services provided to the Public Health Engineering Directorate (PHED), Government of West Bengal, qualify as “pure services” exempt from GST under Notification No. 12/2017-Central Tax (Rate).
The applicant was engaged in various technical activities, including designing and developing monitoring systems, GIS mapping, and data management, to support water distribution under the Jal Jeevan Mission. The scope of work involved services related to household and institutional water supply, categorized as essential functions under Article 243G (Eleventh Schedule) and Article 243W (Twelfth Schedule) of the Constitution.
The Authority determined that the services met the criteria of “pure services,” as they did not involve the supply of goods or materials. Furthermore, the services were provided to the state government and aligned with functions entrusted to Panchayats or municipalities, such as drinking water supply and public health management.
Judicial precedents highlight that for exemption under Entry 3 of Notification No. 12/2017, services must (i) be pure, (ii) be provided to a government body, and (iii) relate to specified constitutional functions. The Authority concluded that the applicant’s services were exempt from GST as per the notification.
