In re State Water And Sanitation Mission (GST AAR Chhattisgarh)
Whether Jal Jeevan mission is correct in classifying the services of M/s Call Me services provided to the government entities as exempted services and Whether the services are exempt under notification no.12/2017 central tax dated. 28.06.2017?
Any person who is registered under GST or desirous of obtaining a registration under GST may apply for an advance ruling and that the question on which an advance ruling is sought for may be with respect to any of the issues referred to in Section 97(2) ibid which are in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant.
In other words, it is the supplier of goods or services or both who can seek an advance ruling on any of the issues specified in clauses (a) to (g) of Section 97(2) above. In the case before us. we find that the applicant, although registered under GST, is not the supplier of the transaction in question but is the recipient of the supply of service. The applicant has sought for a ruling as a recipient of service. The advance ruling mechanism under GST does not envisage giving a ruling to a recipient of supply of goods or services or both about the said supply at supplier end. As per Section 103 of the GST Act the advance ruling pronounced by the Authority is binding only on the applicant who has sought for the ruling on any matter referred to in Section 97(2) as well as on the concerned officer4or jurisdictional officer of the applicant. The applicant in the capacity of recipient of service.is not eligible under law to seek a ruling on the taxability of a transaction at supplier’s end, received by him. In fact, we as AAR does not have the authority to determine the classification or nature of service supplied by the service provider of the applicant at the supplier end who in this case happens to be M/s Call me services, on an application made by the applicant. the recipient of service.
If the classification or nature of the service supplied by the service provider cannot be determined for lack of jurisdiction, it automatically flows that determination of place of supply also cannot be determined. Here the applicant is the recipient of service and is seeking a ruling on the tax liability of a transaction made by the supplier of service. We have already made it clear that this Authority is not competent to determine the classification of a service supplied by the third party who is not the applicant seeking the ruling.
This authority would like to make it clear that the said M/s Call me services, service provider of the applicant is well within its rights to seek an advance ruling from the jurisdictional authority, as to whether the services supplied by them to the applicant is exigible to tax.
FULL TEXT OF THE ORDER OF AUTHORITY FOR ADVANCE RULING, DELHI
M/s State Water and Sanitation Mission, Jal Jeevan Mission, Civil Lines, Raipur-492001 Chhattisgarh GSTIN- 22JBPS16636E1D) hereinafter also referred to as the applicant) has submitted application for Advance Ruling dated 12.4.2022 enclosing duly filled Form ARA-01) (application for Advance Ruling) along with annexures and attachments U/s 97 of the Chhattisgarh Goods & Services Tax Act, 2017 seeking advance ruling regarding-
a) Whether Jal. Jeevan Mission is correct in classifying the services of (M/s. Call me services) provided to the government entities as exempted services? “
b) Whether the services are exempt under Notification No.12/2017 Central Tax (Rate)dated 28.06.2017.
2. Facts of the case:-
2.1 The subject matter is that Jal Jeevan Mission (JJM) is a centrally sponsored scheme (Government Scheme), envisioned to provide safe and adequate drinking water through individual household tap connections by 2024 to all households in rural India. The Programme will also implement source sustainability measures as mandatory elements, such as recharge and reuse through grey water management, water conservation etc. The Jal Jeevan Mission will be based on a community approach to water and will include extensive information, Edutation and communication as a key component of the mission. JJM looks to create a Jan Andolan for welter, thereby making it everyone’s priority..1.1M will focus on integrated demand and supply side management of water at the local level, including creation of local infrastructure for source sustainability like rainwater harvesting, groundwater recharge and management of household water for reuse would be undertaken in convergence with other Government Programme /Schemes.
2.2 The following kinds of works/schemes are proposed to be taken up under JJM:-
i) In-village supply (PWS)infrastructure for tap water connection to every household.
ii) Reliable drinking water source development/augmentation of existing sources:
iii) Transfer of water(multi-village scheme: where quantity and quality issues are there in the local water sources):
iv) Technological intervention for treatment to make water portable(where water quality is an issue, but quantity is sufficient):
v) Retrofitting of completed and ongoing piped water supply schemes to provide FHTC and raise the service level:
(vi) Grey water management:
vii) Capacity building of various stakeholders and support activities to facilitate the implementation
2.3 Jal Jeevan Mission has issued a notice inviting an expression of Interest (EOI) for empanelment of “Providing Man Power for office work (for implementation of work of JJM) at state level-16 and District level-448”, which envisages supply of only pure services (excluding work contract services or other composite supplies involving supply of any goods). Further, the detailed EOI is also available on Department’s website http://phed.cg.gov.in. Jal Jeevan Mission has provided this tender to M/s. Call Me Services to provide manpower supply.
2.4 As.per Notification No.12/2017 Central Tax (Rate)dated 28.06.2017 the relevant reads as under:
