Case Law Details
In re KDS Services (P) Ltd (GST AAR Uttar Pradesh)
Question-1- Whether the Project Development Service (i.e. Detailed Project Report Service/Beneficiary Document Preparation) and Project Management Consultancy services (‘PMCS’) Supervision Services provided by the applicant to tha recipient under the contract from State Urban Development Authority (herein referred as “SUDA”) and the Project Management Consultancy services (‘PMC’) under the Contract for PMAY would qualify as an activity in relation to function entrusted to Panchayat or Municipality under Article 243G or Article 243 W respectively, of the Constitution of India?
Answer-1- The Services rendered under the contract with State Urban Development Agency, Uttar Pradesh (SUDA), and for PMAY are in relation to functions entrusted to Municipalities under Article 243 W and to Panchayats under Article 243 G of the Constitution of India.
Question-2– If answer to first question is in affirmative then, whether such services provided by the applicant would qualify as Pure services (excluding work contract service or composite supplies involving supply of any goods) as provided in serial number 3 of Notification No. 12/2017- Central Tax (Rate) dated 28 June, 2017, as amended (S. No. 3A ) Notification No. 2/2018- Central Tax (Rate) dated 25 January, 2018 issued under Central Goods and Services Tax Act, 2017 (CGST)and corresponding Notifications No. KA.N.I.-2843/X1-9(47) /17-UP. Act-1-2017-Order-(10)- 2017 Lucknow, dated June 30, 2017 issued under Uttar Pradesh Goods and Service Tax Act, 2017 (‘UPGST Act’), where the project cost includes the cost of service rendered along with reimbursement of cost of procurement of goods for rendering such service, and, thus, be eligible for exemption from levy of CGST and UPGST, respectively.
Answer-2- Such services would qualify as Pure Service (excluding work contract service or other composite supplies involving supply of any goods)” and accordingly exempt from the payment of GST duly covered in Sl.No 3 of Notification No. 12/2017- Central Tax (Rate) dated 28 June, 2017 issued under Central Goods and Services Tax Act, 2017 (CGST/Act), and corresponding notification issued under Uttar Pradesh Goods and Service Tax Act, 2017 (UPGST Act).
Please become a Premium member. If you are already a Premium member, login here to access the full content.
