In re Jayesh A Dalal (GST AAR Uttar Pradesh)
AAR observe that the applicant has not submitted any relevant document to establish the coverage of services provided by them in particular functions entrusted to a municipality under the twelfth Schedule to Article 243W of the Constitution. The nature of services mentioned in the Work Order dated 16.01.2019 (attached by the applicant in the application of advance ruling on sample basis) i.e. preparation of DPR and Project Management Consultancy are not covered in the functions entrusted to a municipality under Article 243W of the Constitution in our view.
In view of the above, both the members of AAR unanimously ruled as under;
Q-1 whether the project Development service (i.e Detailed Project Report service) and project Management Consultancy services (PMCS) Provided by the Applicant to recipient under the Contract for SUDA And the Project Management Consultancy services (“PMC”) under the Contract for PMAY would Qualify as an Activity in relation to Function entrusrted to Panchayat or Municipality under Article 243G or Article 243W respectively, of the Constitution of India?
Ans- No.
Q-2 if Answer to Question is in Affirmative, would such Services provided by the Applicant Qualify as “PURE services (excluding works Contract service or other Provided in serial number 3 of Notification No. 12/2017 –Central Tax (RATE) dated 28 june,2017 as amended (S.No.3A) by Notification No.2/2018 Central Tax (RATE) dated25 January, 2018 issued under Central Goods And Services TaxAct,2017 (CGST) and Corresponding Notification No.KA.NI.-2 843/Xi-9 (47)/ 17-U.P Act-1-2017 –Order –(10)-2017 Lucknow dated June30, 2017 issued under Uttar Pradesh Goods And Services TaxAct,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.
Ans- Not applicable
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, UTTAR PRADESH
ORDER UNDER SECTION 98(4) OF THE CGST ACT, 2017 & UNDER SECTION 98(4) OF THE UPGST ACT, 2017
1) M/s Jayesh A Dalai, Shop No. 4, J.S.Market, Suhag Nagar, Firozabad, Uttar Pradesh-283203, (here in after referred to as the applicant) is a registered assessee under GST having GSTN: 09AAVPD9061B1ZK.
2) The Applicant has submitted application for Advance Ruling dated 06.11.2020 enclosing duly filled Form ARA-01(the application form for Advance Ruling) along with certain annexure and attachments.
3) The Applicant in his application sought Advance Ruling as follows :-
i. Whether the Project Development Service (i.e. Detailed Project Report Service) and Project Management Consultancy services (‘PMCS’) provided by the applicant to recipient under the Contract for 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 243W respectively, of the Constitution of India?
ii. If answer to question i is in affirmative, would such services provided by the applicant qualify as “Pure services (excluding works contract service or other 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) by 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.-2-843/XI-9 (47) / 17-U.P. 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.
4) As per the declaration given by the applicant in Form ARA-01, the issue raised by the applicant is neither pending in any proceedings nor decided in any proceedings in the applicant’s case under any of the provisions of the ACT.
5) The applicant has submitted that there is an agreement between Director -State Urban Development Agency (SUDA), 7/23, Sector-7, Gomtinagar Extension, Sahid Path, Near Dial 100, Lucknow and M/s Jayesh A Dalal, address Jalaram Shakti beside Dhavalgiri Apartments, Near Lourdes Convent School, Athwalines, Surat – 395007, Gujarat. The agreement is for-
(I) Preparation of Detailed Project Report (DPR) for Ghaziabad NN ULB (District -Ghaziabad) in Meerut Cluster No. 14 and providing Project Management Consultancy (PMC) for Project under Beneficiary Led Construction in 18 Clusters vide work order no. 1190/01/29/HFA/2018-19 dated 16/01/2019. The Client accepted the proposal submitted by M/s Jayesh A Dalai for DPR and PMC services for Beneficiary Led Construction (BLC) component of Pradhan Mantri Awas Yojana – Urban (PMAY-U).
6) GST exemption under Notification No. 12/2017- Central Tax (Rate) dated 28 June, 2017 & Notification No. 2/2018- Central Tax (Rate) dated 25 January, 2018 are as under:-
Notification No. 12/2017- Central Tax (Rate) dated 28 June, 2017:
Table
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