In re INI Design Studio Pvt. ltd. (GST AAR Gujarat)
Question-1: Whether Design and Comprehensive Consultancy Services from concept to completion for State-of-Art High rise office building provided to Surat Municipal Corporation covered under Entry No.3 of Notification No.12/2017-Central Tax(Rate) dated 28.06.2017?
Answer: Answered in the negative for the reasons discussed hereinabove.
Question-2: Whether Consultancy Services for preparation of design and detailed estimation of town hall at Dehgam, provided to Ahmedabad Urban Development Authority covered under Entry No.3 of Notification No.12/2017-Central Tax(Rate) dated 28.06.2017?
Answer: Answered in the negative for the reasons discussed hereinabove.
Question-3: Whether Medical and Design Consultancy Services for establishment of Medical College, Teaching Hospital and Nursing College at Pune, provided to Pune Municipal Corporation covered under Entry No.3 of Notification No.12/2017-Central Tax(Rate) dated 28.06.2017?
Answer: Answered in the negative for the reasons discussed hereinabove.
Question-4: Whether work of Preparation of Master Plan of Green Field Areas and Project Management Consultancy Work for Development of Green Field Areas provided to Rajkot Smart City Development ltd. covered under Entry No.3 of Notification No.12/2017-Central Tax(Rate) dated 28.06.2017?
Answer: Answered in the negative for the reasons discussed hereinabove.
Question-5: Whether Consultancy Services for Architectural and Engineering design/working drawing of Baramati Hospital provided to Executive Engineer, Public Works(East) Division, Pune covered under Entry No.3 of Notification No.12/2017-Central Tax(Rate) dated 28.06.2017?
Answer: Answered in the negative for the reasons discussed hereinabove.
Question-6: Whether Consultancy service to Gujarat Technological University for Architectural design/engineering design, working drawing, Structural analysis and drawings, electrical drawings and details of all services for phase wise construction of building for proposed project can be covered under Entry No.3 ofNotification No.12/2017-Central Tax(Rate) dated 28.06.2017 and Gujarat State Notification No.12/2017-Central Tax(Rate) dated 28.06.2017 ?
Answer: Answered in the negative for the reasons discussed hereinabove.
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING,GUJARAT
The applicant M/s. INI Design Studio pvt.ltd. located at 7th floor, 71/72, Titanium Corporate Road, Satellite, Ahmedabad-380015 are engaged in providing a wide range of professional consulting services including Architecture, Engineering (MEPF), Planning, Urban Design, Landscape, Sustainability, Research and Art, Building Design, Interior Design, Surveying, Environmental Sciences, Project Management and Project Economics. The applicant has stated that they support a diverse range of public and private sector projects at every stage, from the conceptualization and financial feasibility study to project completion and beyond and that they provide services for projects in India and internationally in Buildings, Industry, Infrastructure and Social Sectors such as Residential, Mixed-Use, Retail, Pharmaceuticals, Healthcare, Educational and Civic projects.
2. The applicant has submitted that their services are covered by SAC Code 99832-Architectural services, urban and land planning and landscape architectural services liable to tax at 18% (9% SGST + 9% CGST); that presently they have received work orders from various local authorities like the Surat Municipal Corporation, Ahmedabad Urban Development Authority, Pune Municipal Corporation, State Government of Maharashtra (through Executive Engineer, Public Works Division, Pune), for Government projects namely Rajkot Smart City Development ltd. and from Government Entity namely Gujarat Technological University. The applicant has submitted the details of the project as follows:
(i) Surat Municipal Corporation: Providing Design and Comprehensive Consultancy services from concept to completion for State-of-Art High rise office building for Surat Municipal Corporation at T.P.S.No:6(Majura-Khatodara) FP No:235, Ring Road, Surat.
(ii) Ahmedabad Urban Development Authority: Preparation of Design and Detailed Estimation of Town Hall at Dehgam.”
(iii) Pune Municipal Corporation: Appointment of a Medical Consultant for Establishment of Medical College, Teaching Hospital and Nursing College for Pune Municipal Corporation at Pune.
(iv) Rajkot Smart City Development limited:Work of Preparation of Master Plan of Green Field Areas for the Development of Green Field Area-Rajkot Smart City at Rajkot. Project Management Consultancy Work of Master Plan of Green Field Areas for the Development of Green Field Area-Rajkot Smart City at Rajkot.
(v) Executive Engineer, Public Works(East)Division, Pune: Design and PMC Services for Baramati Hospital.
(vi) Gujarat Technological University: Complete and comprehensive Consultancy Services for Architectural design/engineering design, working drawing. Structural analysis and drawings, electrical drawings and details of all services for phase wise construction of building for proposed project.
3. As regards the issue of taxability, the applicant has referred to Section 2(108) of the CGST Act, 2017 which reads as “taxable supply” means a supply of goods or services or both which is leviable to tax under this Act.”. The applicant has stated that on going through all the above contracts, it can be seen that the services provided by the applicant are in the nature of professional technical services as mentioned earlier covered by SAC code 9983, that all the contracts are with local authority or with state government and are pure services contracts, meaning thereby, it does not have any supply of any goods/material from the part of service provider. The applicant has defined the Pure services as any supply which is either deemed as services under Schedule II of the CGST Act or which is not covered under the definition of goods shall be categorized as pure services. The applicant has stated that the services provided by them fall under Entry No.21 of Notification No.11/2017-Central Tax(Rate) dated 28.06.2017 and is liable to GST at 18%, however when covered under Entry No.3 of Notification No.12/2017-Central Tax(Rate) dated 28.06.2017, the said service is liable to tax at NIL rate. Entry No.21 of Notification No.11/2017-Central Tax(Rate) dated 28.
06.2017 reads as under:
