In re Erode City Municipal Corporation (GST AAAR Tamilnadu)
i. In respect of Q.No. 1, Sl. No. 5-B (Rent for locker provided in bus stand by the appellant) it is held to be an activity undertaken by the Municipality as a function entrusted under 243W of the Constitution and the service of rent or fee collection for such a facility is neither a Supply of Goods nor a supply of Service as per Notification No. 14/2017-CT (Rate).
ii. In respect of Q.No. 2, the transaction between the corporation and the contractor as listed in Sl.No. 1. to 9 and 13, except at SI.No. 5A-Charges for TV advt. in Bus Stand; 5C-Flower shop in bus stand in open space & Sl.No.7 Bunk Stalls’ of the said question, in the factual matrix presented, it is held to be an activity/transaction in relation to the activity/transaction undertaken by the appellant engaged as Public Authority and the same are covered under Notification No. 14/2017-CT (Rate). as amended.
iii. In respect of Q.No. 2, Sl.NO. 5A-Charges for TV advt. in Bus Stand; 5C-Flower Shop in bus stand in open space & Sl. No. 7 -Bunk Stall’ of the said question, the same is covered under Sl. No. 7 of Notification No. 12/2017-CT (Rate) as well as charging of tax on RCM basis under Sl.No. 5 of Notfn No. 13/2017 CT (Rate) subject to fulfillment of the conditions therein is available to appellant.
iv. In respect of supply of services of allowing road cutting, and the subsequent track renting, the situation being factual in as much gas the road cutting is followed by laying of cables by telephone companies for which track rent is collected, the supply would be a Composite Supply extended to this particular activity not extended to all types of road cutting activities.
FULL TEXT OF THE ORDER OF AUTHORITY OF APPELLATE ADVANCE RULING, TAMILNADU
At the outset, we would like to make it clear that the provisions of both the Central Goods and Service Tax Act and the Tamil Nadu Goods and Service Tax Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Service Tax Act would also mean a reference to the same provisions under the Tamil Nadu Goods and Service Tax Act.
1. The subject appeal has been filed under Section 98(5) of the Tamilnadu Goods & Services Tax Act, 2017/Central Goods & Services Tax Act 2017 by TvI. The Erode City Municipal Corporation (hereinafter referred to as ‘Appellant’). The appellant is registered under GST vide GSTIN 33AAALT1781B1ZB. The appeal is filed against the Order No. 14/ARA/2021 dated 28.04.2021 passed by the Tamil Nadu State Authority For Advance Ruling on the application for advance ruling filed by the appellant.
2. The Appellant is a “Municipality” as defined in clause (e) of article 243P of the Constitution. They are rendering taxable services (viz) renting of immovable property service, rnandap keeper service and are doing the functions entrusted to a municipality under twelfth Schedule to Article 243W of the Constitution, they have stated to undertake the following services directly/ through contractors by tender process and have sought ruling on the application of Notifications specified in Column below:
