In re Kochi Metro Rail Limited (GST AAR Kerala)
The services rendered by the applicant to the Government of Kerala as executing and operating agency of the integrated water transport project is exempted from GST.
1. Since the Govt, of Kerala is the dejure owner of the assets of the water metro project and the works contracts are performed by contractors with whom agreements are entered into by KMRL on behalf of Govt, of Kerala:
(a) Whether KMRL has any liability to pay GST on the funds received from Govt, of Kerala for paying the cost of the water metro project?
No. The applicant being the agency for executing and operating the integrated water transport project in Kochi is rendering pure services to the Government of Kerala which is falling under the service classification code 998339. Hence, the services provided by the applicant to the Government of Kerala are exempted from payment of goods and services tax by virtue of the entry at SI No. 3 of Notification No. 12/2017 Central Tax (Rate) dated 28.06.2017.
(b) Whether a GST invoice is to be raised on Government of Kerala for transferring the value of assets on a back to back basis after completion of the works?
No, in view of answer to (a) above.
(c) In the above cases, if liable, how will the ITC be claimed against (a ) & (b) In view of the answer to (a) and (b) above question of availing of ITC does not arise.
2. Notwithstanding the above, whether KMRL can be treated as a Governmental authority as per the IGST Act for the purpose of claiming exemption under item no.4 of Notification No. 12/2017 dtd.28-06-2017 since it is a body established by the Government with ninety percent or more participation by way of equity to carry out function entrusted to a municipality under Article 243W of the Constitution?
The applicant falls under the definition of “Governmental Authority” under Para 2 (zf) of Notification No. 12/2017 Central Tax (Rate) dated 28.06.2017.
