In re Data Processing Forms P Ltd. (GST AAAR Gujarat)
Gujarat Appellate Authority for Advance Ruling (AAAR) has upheld the Gujarat Authority for Advance Ruling’s (GAAR) decision denying tax exemption to M/s. Data Processing Forms P Ltd. The company, engaged in printing and data processing services, had sought exemption under entries 3 and 3A of Notification 12/2017-CT (R) for services provided to the Gujarat Public Service Commission (GPSC) and the Gujarat Panchayat Service Selection Board (GPSSB). The appellant argued that its services should be considered exempt as they were provided to a government authority or a local authority. However, the authorities ruled otherwise. The services to GPSSB involved a composite supply of goods and services, disqualifying them from being classified as “pure services” required under the exemption. Additionally, GPSSB was determined not to be a “local authority” under Section 2(69) of the CGST Act, 2017, nor was it considered a part of the central or state government.
Similarly, the services provided to GPSC, which included ICR/OCR/OMR scanning, data capture, and result processing, were ruled ineligible for exemption. While the appellant claimed GPSC functioned as a government entity, the authorities concluded that it did not meet the criteria of a “State Government” or a “local authority.” Furthermore, the services provided were not linked to any function under Articles 243G or 243W of the Constitution, which define the responsibilities of Panchayats and Municipalities. The AAAR emphasized that there was no basis to classify these services as tax-exempt under the relevant GST notification. Consequently, the appeal was rejected, affirming the GAAR ruling that the services in question remain taxable under GST.
