Case Law Details
In re M/s. VFS Global Services Private Limited (GST AAR Maharashtra)
Whether the work for ‘Operating Citizen Facilitation Centre (CFC) at various Locations of MCGM on per transaction/receipt basis’ involving the aforesaid Scope of Work would be exempt from GST vide Sr. No.3 & 3A of amended Notification No. 12/2017 – Central (Rate) as on 31st Dec, 2018.
From a perusal of the contract submitted by the applicant, we do not agree with the applicant that the supply by them to MCGM is a composite supply of service. The contract very clearly states that the agreement between Mr. Anil Katoch of M/s VFS Global Services Private Limited and Shri Sitaram Kunte, Municipal Commissioner, is for the work of Operating Citizen Facilitation Centres / Collection Centres at various Locations of MCGM for 5 years on per transactions basis at Rs.29.45 (Rupees twenty nine and paise forty five only) per transaction for pilot period of two months and thereafter for five years. The contract nowhere specifies separately for supply of goods, namely, computers, other consumables, etc. Therefore we find that the computers, other consumables, etc are being used by the applicant on their own account and that too for the purpose of providing services for the work of Operating Citizen Facilitation Centres / Collection Centres at various Locations of MCGM. Hence we find that their supply is of services only and are in the nature of pure services. However we agree to their submission that their role starts only after MCGM has provided services to citizens for which periodical bills/invoices are issued by MCGM. The role of the applicant starts only after the supply of goods/services are rendered by MCGM and hence it cannot be said that they are rendering service by way of any activity in relation to any function entrusted to a Municipality under article 243W of the Constitution.
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, MAHARASHTRA
PROCEEDINGS
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