Case Law Details
In re Creative Consortium (Madhu Garg) (GST AAR Uttar Pradesh)
Q(i) .Whether the Project Development Service (ie. Detailed Project Report Service) and project management consultancy services (PMCS) provided by the applicant to recipient under the contract from State Urban Development Authority (SUDA) and project management consultancy services (PMCS) under the contract of Prandhan Mantri Awas Yojna (PMAY) woould qualify as an activity in relation to function entrusted to Panchayat or Munshipality under article 243G or article 243W respectively , of the constitution of India?
Ruling on Question 1. We hold that 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 243W and to Panchayats under Article 243G of the Constitution of India.
Q(ii)-If answer to firts question is in affirmative then whether such services provided by the applicant would qualify as pure services (Excluding works contract service or composite supply involving supply of any goods) as provided in serial no. 3 of notification no. 12/2017-Central Tax (Rate) dated 28 june 2017, as amended (S.N. 3A) by notification no. 2/2018 Central Tax (Rate) dated 25 january 2018 issued under Central Goods and Services Tax Act 2017 (CGST) and Corresponding Notification No. KA.N.I.-2-843/XI-9 (47)/17-UP-Act-1-2017-order-(10)-2017 Lucknow dated june 30 2017, issued under Uttar Pradesh Goods and Services 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.
Ruling on Question 2. Such services would qualify as Pure Service (excluding works 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 28th June, 2017 (as amended from time to time) issued under Central Goods and Services Tax Act, 2017 (CGST/Act), and corresponding notifications issued under Uttar Pradesh Goods and Services Tax Act, 2017 (UPGST Act).
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