In re Tiruppur City Municipal Corporation (GST AAR Tamilnadu)
Q.1. Advance ruling is required in respect of Sl No 1 to 5, 7 to 9, as to whether the services rendered by us directly are covered under Twelfth Schedule to Article 243W of the Constitution and /or exempted under the Notfn. No mentioned against each Sl No as detailed below.
| Sl. No |
Description of the service |
Ruling |
|---|---|---|
| 1 | Maintenance of Park | Not a Supply of Service as per Notification No. 14/2017-C.T.(Rate) dated 28th June 2017 as amended vide Notification No. 16/2018 dated 26.07.2018 |
| 2 | Providing Market facilities -daily |
Not a Supply of Service as per Notification No. 14/2017-C.T.(Rate) dated 28th June 2017 |
| 3 | (i)Providing Market facilities -weekly | Not a Supply of Service as per Notification No. 14/2017-C.T.(Rate) dated 28th June 2017 |
| 4 | Providing bays in bus stand | Not a Supply of Service as per Notification No. 14/2017-C.T.(Rate) dated 28th June 2017 as amended vide Notification No. 16/2018 dated 26.07.2018 |
| 5 | (B) Locker rent facilities | (B)Facility of providing locker for rent directly by the applicant is taxable for the reason that this does not fall under Notification No. 14/2017-C.T.(Rate) dated 28th June 2017 and is taxable |
| 7 | Providing Slaughter house facilities | Not a Supply of Service as per Notification No. 14/2017-C.T.(Rate) dated 28th June 2017 as amended vide Notification No. 16/2018 dated 26.07.2018 |
| 8 | Providing Toilet facilities | Not a Supply of Service as per Notification No. 14/2017-C.T.(Rate) dated 28th June 2017 as amended vide Notification No. 16/2018 dated 26.07.2018 |
| 9 | Providing stand for cycle, scooter, auto, four wheeler stand in bus stand and other places | Not a Supply of Service as per Notification No. 14/2017-C.T.(Rate) dated 28th June 2017 as amended vide Notification No. 16/2018 dated 26.07.2018 |
Q2. In respect of services rendered by us from SI No 1 to 9 through tender contractors whether they are covered under Twelfth Schedule to Article 243W of the Constitution and/or exempted vide the Notfn. no. mentioned against each Si No.as follows.
The applicant supplies the ‘Right to collect the fees/right to certain amenities’ to the contractors and the supply undertaken by the contractors are as per the tender conditions which is an independent supply. The applicability of the Notification to the supplies of the contractors is not answered as per S.95(a) readwith S.103(1) of the GST Act.
Q2(ii) In respect of Sl No 10 to 12 w.e.f. 25-01-2018, instead of reverse charge we collected tax under direct charge from the service availers who are registered with GSTN and whether it can be regularlised.(to be treated as technical lapse and condoned since the service rendered by us had suffered tax and Govt. revenue is not affected)
The question seeks regularization of the payment made by them considering the same as a technical lapse, which is not in the purview of this authority as per Section 97 (2) and therefore, the question is not admitted under Section 98(2) of the Act
Q.3 In respect of SI No 14 we are collecting charges for laying of cables alongside roads and collecting road cutting charges as well as annual rent. We require advance ruling whether composite supply can be applied for classifying the said service as renting of immovable property service and reverse charge can be applied for collecting GST as per entry SI No 5A of the table to Notfn No 13/2017 (CE rate) dated 29-06-2017 as amended from the telephone operators who are GSTN holders
Supply of allowing the road cut for laying the OFC and allowing the space alongside the road for the OFC lines are not ‘composite supply’ as defined under S. 2(30) of the GST Act, 2017 in as much as these two supplies are not made in conjunction with each other in the ordinary course of business. Hence Composite supply cannot be applied for classifying the said service as `Renting of Immovable property service’
Q.4 In respect of SI.No. 13 whether full exemption is applicable or not
The exemption provided in the entry no. 12 of Notification 12/2017 dated 28.06.2017 will be applicable to the applicant, in case of the applicant providing the ‘residential dwellings’ owned by them for use as residence
Q.4 (ii). In respect of SI No 15 the renting of immovable property service rendered by us as a local authority to
(i) Pure state Govt. offices (viz) Asst. Director Of L F Accounts, Project Officer, ICDS, ICDS Centre: Deputy Supt. Of Police and pure Central Gout offices (viz) post offices are fully exempted or not as per entry SI no 8 of the table to Notification 12/2017 dated 28.06.2017
(ii) Co-operative society(viz) Chindhamani Super Market, Jeeva Co-Op Society , TNSTC Staff Society, Jeeva Co-Op Society and transport corporation TNSTC are exempted or not as per entry Si no 8 of the table to Notification 12/2017 dated 28.06.2017.
(iii) Nationalised Banks are exempted or not as per SI no 8 of the table to Notification 12/2017 dated 28.06.2017
Service of renting of immovable property by the applicant to another Central/State government/Union territory or Local authority alone is exempted from tax as per Sl. No. 8 of Notification 12/2017 dated 28.06.2017 and the services of renting of immovable property to other than Central/State Government, Union Territory or Local authority, are not exempted under SI No. 8 of he table to Notification 12/2017 dated 28.06.2017
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING,TAMILNADU
Note: Any appeal against the Advance Ruling order shall be filed before the Tamil Nadu State Appellate Authority for Advance Ruling, Chennai under Sub-section (1) of Section 100 of CGST ACT/TNGST Act 2017 within 30 days from the date on which the ruling sought to be appealed against is communicated.
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.
M/s. TIRUPPUR CITY MUNICIPAL CORPORATION, 1, Mangalam Road, Tirupur, Tamil Nadu. Tirupur. 641 604. (hereinafter called the ‘Applicant’) is registered with GSTIN No. 33AAALT1624R1ZO. The applicant 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, mandap 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 E below:
