In re Call Me Services (AAR Chhattisgarh )
Whether the services provided by them in relation to maintenance of various colonies developed by Chhattisgarh Housing Board (CGHB) and not handed over to the local authority by CGHB are exempt under SI. No. 3 of the Exemption Notification GST Notification No. 12/2017-Central Tax (Rate) dated 28/06/2017 as amended from time to time.
The services provided by the applicant in relation to maintenance of various colonies developed by Chhattisgarh Housing Board (CGHB) and not handed over to the local authority by CGHB, is found not eligible for the benefit of Nil rate of GST provided under Sr. no. 3/3A of exemption Notification no. 12/2017-Central Tax (Rate) dated 28.6.2017 as amended by Notification no. 16/2021 -Central Tax (Rate)New Delhi, 18th November, 2021, effective from 1st of January 2022.
FULL TEXT OF THE ORDER OF AUTHORITY FOR ADVANCE RULING, CHHTTISGARH
M/s Call Me Services, C-101/5, First floor, Tagore Nagar, Raipur-492001, Chhattisgarh (here in after referred to as the applicant) holding GSTIN-22ADEPB9688C1ZQ, has furnished and application dated 3.9.2022 in form ARA-01 under section 97 of the Chhattisgarh Goods & Services Tax Act, 2017 seeking advance ruling regarding GST exemption on the services provided in relation to maintenance of various colonies developed by CGHB and not handed over to the Authority by CGHB under SI. No. 3 of the Exemption Notification GST No. 12/2017-Central Tax (Rate) dated 28/06/2017 as amended from time thereafter the applicant under their e-mail dated 20.9.2022 furnished the details of challans evidencing payment of fees stipulated for obtaining an advance ruling under sub-section (1) of section 97 of CGST Act, 2017 read with Rule 104 of Central Goods and Service Tax Rules, 2017 in the manner specified in section 49 ibid. Thus, the application complete in all respect has been filed by the applicant on 20.9.2022.
2. Facts of the case: –
2.1 The Applicant herein is M/s Call Me Services, Prop Raj Kumar Bothra, is having its registered office at C-101/5, 1st Floor, Tagore Nagar, Raipur (C.G.), GSTIN: 22ADEPB9688C1ZQ.
2.2 The Applicant herein is engaged in Manpower Supply, Contract staffing, Security Guards and Business Auxiliary Services.
2.3 The Applicant has been awarded a contract by Chhattisgarh Housing Board (herein referred to as CGHB) for providing services in relation to maintenance of various colonies developed by Chhattisgarh Housing Board at Atal Nagar, Naya Raipur and not handed over to the local authority for its maintenance.
3. Contentions of the applicant:–
3.1 That, CGHB is a public sector undertaking of the Government of Chhattisgarh. It is a board constituted under Chhattisgarh Housing Board Act, 1972 (No. 3 of 1973). After formation of the state of Chhattisgarh in November 2000, Housing Board was among the several Boards and Corporations liquidated by the Government. Later, however, the Government in 2004 revised its earlier decision and formed Chhattisgarh Housing Board vide notification no. 177/3236/32/2003 dated 12/12/2004. Chhattisgarh Housing Board is the main arm of the Government of Chhattisgarh for giving effect to its housing schemes and for implementing the Government’s schemes under social housing.
3.2 That, since CGHB is a board constituted in terms of Chhattisgarh Housing Board Act which carries out functions entrusted by the State Government, the same would qualify as per the definition of “Local Authority”.
3.3 Further that, CGHB is also engaged in performing various functions required to be performed by Municipality under article 243W of the Constitution like slum improvement, up gradation and also facilities like solid waste management, water supply for domestic purpose etc. till the time the developed areas are officially handed over to the local authority for maintenance.
3.4 That, Since CGHB carries out the functions required to be performed by the municipality till the time the developed areas are officially handed over to the local authority for maintenance, therefore CGHB is acting as a municipality. Hence CGHB should also be considered as a municipality i.e. local authority.
3.5 That, so the pure service contracts awarded by the CGHB for providing services
4. Personal Hearing: –
Keeping with the established principles of natural justice, personal hearing in the matter was extended to the applicant in person, as requested by them and accordingly, Shri Alok Chopra CA and author zed representative of the Applicant, M/s Call Me Services, Prop Raj Kumar Bothra, attended the personal hearing in the matter before us on 31.10.2022. He submitted –hat they are seeking advance ruling as to Whether the services provided by them in relation to maintenance of various colonies developed by CGHB and not handed over to the local authority by CGHB are exempt under SI. No. 3 of the Exemption Notification GST Notification No. 12/2017-Central Tax (Rate) dated 28/06/2017 as amended from time to time. Further that they have been awarded a contract by Chhattisgarh Housing Board (CGHB) for providing services in relation to maintenance of various colonies developed by Chhattisgarh Housing Board at Atal Nagar, Naya Raipur and not handed over to the local authority for its maintenance. Accordingly, it was his contention that pure service contracts awarded by the CGHB for providing services in relation to maintenance of various colonies developed by Chhattisgarh Housing Board at Atal Nagar, Naya Raipur comes under Indian Constitution’s Article 243W and Twelfth Schedule Services in relation to a function of Municipality and hence exempt under SI. No. 3 of Notification No. 12/2017-Central Tax (Rate) dated 28/06/2017. Accordingly, he reiterated the contention in the matter as made in their ARA01 and requested for a ruling in the matter.
5. The legal position, analysis, and discussion: –
At the very outset, we would like to make it clear that the provisions for implementing the CGST Act and the Chhattisgarh GST Act, 2017 [hereinafter referred to as “the CGST Act and the CGGST Act”] are similar and thus, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the CGGST Act, 2017. Now we sequentially proceed to discuss the issues involved in the ruling so sought by the applicant and the law as applicable in the present case.
6. Section 96 of CGST Act, 2017, Authority for advance ruling, stipulates as under: –
Subject to the provisions of this Chapter, for the purposes of this Act, the Authority for advance ruling constituted under the provisions of a State Goods and Services Tax Act or Union Territory Goods and Services Tax Act shall be 46.), \deemed to be the Authority for advance ruling in respect of that State or Union territory.
Section 97(2) of CGST Act 2017 stipulates that: –
The question, on which the advance ruling is sought under this Act, shall be in respect of—
(a) classification of any goods or services or both;
(b) applicability of a notification issued under the provisions of this Act;
(c) determination of time and value of supply of goods or services or both;
(d) admissibility of input tax credit of tax paid or deemed to have been paid;
(e) determination of the liability to pay tax on any goods or services or both;
(f) whether applicant is required to be registered;
(g) whether any particular thing done by the applicant with respect to any goods or services or both amounts to or results in a supply of goods or services or both, within the meaning of that term.
Further section 103 of CGST Act, 2017 stipulates about the ruling pronounced as under: -The advance ruling pronounced by the Authority or the Appellate Authority under this Chapter shall be binding only –
a. On the applicant who had sought it in respect of any matter referred to in sub-section (2) of section 97 for advance ruling;
b. On the concerned officer or the jurisdictional officer in respect of the applicant.
Thus, in view of the above section 103 of CGST Act, 2017, the ruling so sought by the applicant would be binding only on the applicant and on the concerned officer or the jurisdictional officer as stipulated above.
7. We have gone through the submissions made by the applicant and have examined the contentions raised by them. At the outset, we find that the issue raised in the application is squarely covered under Section 97(2) (b) of the CGST Act 2017 being a matter related to applicability of a notification issued under the provisions of this Act. We, therefore, admit the application fcr consideration on merits.
7.1 The jurisdictional Assistant Commissioner, State Tax Raipur Circle-06 in his reply Cno./AC/HC/2022/933 dated 25.11.2022 inter-alia opined that Chhattisgarh Housing Board CGHB is aboard constituted in terms of Chhattisgarh Housing Board Act, 1972 (No. 3 of 1973) and that the Government it the year 2004 formed CGHB vide Notification no. 177/3236/32/2003 dated 12.2.2004. It was further opined by the officer that the said supply provided by the applicant is covered under SAC 9985 and the same attract tax @,18% (CGST 9% and SGST 9%). The Deputy Commissioner, CGST Division-IV, Raipur under his letter IV(16)42/Misc/Div-IV/RPR/2020-21/3248 dated 23.11.2022 furnished the comments of the jurisdictional Range officer, that the services mentioned in the application filed by the applicant will not cover under the exemption category as prescribed in sr. no. 3 of Notification no. 12/2017-CT(Rate) dated 28.6.2017 as CGHB will not fall under the category of Central Government, State Government, local authority, government authority etc. Further that the services provided to CGHB is not covered under the said exemption as the work should be entrusted to Panchayat or Municipality as per Constitution. It was thus opined that the taxpayer will have to discharge / pay tax at the applicable rate as per prevalent law.
8. The issues covered in the instant case in hand is regarding the applicability of exemption from GST on the services provided by the applicant, as stipulated under SI. No. 3 of exemption Notification no. 12/2017-CT(Rate) dated 28.6.2017 as amended.
We observe that the ruling sought by the applicant is whether the services provided by them in relation to maintenance of various colonies developed by Chhattisgarh Housing Board (CGHB)and not handed over to the local authority by CGHB are exempt under SI. No. 3 of the Exemption Notification GST Notification No. 12/2017-Central Tax (Rate) dated 28/06/2017 as amended from time to time. The applicant in their application have submitted that they have been awarded a contract by Chhattisgarh Housing Board (CGHB) for providing services in relation to maintenance of various colonies developed by Chhattisgarh Housing Board at Atal Nagar, Naya Raipur and not handed over to the local authority for its maintenance. The applicant is of the opinion that pure service contracts awarded by CGHB for providing services in relation to maintenance of various colonies developed by Chhattisgarh Housing Board at Atal Nagar, Naya Raipur comes under Indian Constitution’s Article 243W and Twelfth Schedule Services in relation to a function of Municipality and hence exempt under SI. No. 3 of Notification No. 12/2017-Central Tax (Rate) dated 28/06/2017.
8.1 For ease of reference, the relevant portion of GST Notification No. 12/2017-Central Tax (Rate) dated 28 June 2017 as amended by Notification No. 16/2021 Central Tax (Rate)New Delhi, 18thNovember 2021 effective from 1st of January 2022 is reproduced here under: –
Government of India
Ministry of Finance (Department of Revenue)
Notification No. 12/2017- Central Tax (Rate) New Delhi, the 28th June, 2017 In exercise of the powers conferred by sub-section (1) of section 11 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendation of the Council, hereby exempts the intro-State supply of services descriptions specified in column (3) of the Table below from so much of the central tax leviable thereon under sub-section (1) of section 9 of the said Act, as is in excess of the said tax calculated at the rate as specified in the corresponding entry in column (4) of the said Table, unless specified otherwise, subject to the relevant conditions as specified in the corresponding entry in column (5) of the said Table, namely:-
TABLE
