In re M/s Yashaswini Enterprises (GST AAR Karnataka)
Whether the transaction of the applicant relating to execution of the works contract pertains to energised borewells is it covered under article 243G of the Constitution, their supply is meant to the Government Entity and hence it is exempted under Sl.No.3A of Notification No. 2/2018 – Central Tax (Rate) dated 25/01/2018. Thus the applicant contends that their activity / service is taxable at NIL rate or not ?
In the instant case the supply is made by the applicant to the corporations, as described earlier and the value of the goods involved in the composite supply of an energized bore well is less than 25% of the total value of the composite supply. Therefore the first condition is fulfilled.
The recipient of the supply of the applicant in the instant case is a Government entity as already discussed earlier and hence the second condition also is satisfied .
The third 86 last condition is that the supply of the applicant should be an activity in relation to any function entrusted to a Panchayat under article 243G or to a Municipality under article 243W of the Constitution.
The article 243G clearly states that the Panchayats may be endowed with such powers and authority to enable them to function and such law may contain provisions for devolution of powers with respect to implementation of schemes for economic development and social justice as may be entrusted to them including those in relation to the matters listed in the Eleventh Schedule. This very clearly shows the Eleventh Schedule is a list of those activities that may be entrusted to the Panchayat for implementation.
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