Case Law Details
In re Sri Satya Sai Water Supply Project Board (GST AAR Andhra Pradesh)
1. Whether the applicant qualifies as a ‘Governmental Authority’ under the Act and whether the services availed by it are exempt from the GST by virtue of Entry 3 in Notification 12/2017 (Rate), dt: 28.06.2017?
The applicant is constituted by the Government i.e., the State of Andhra Pradesh under G.O.Ms No. 344 dated: 16.09.1997. Hence is qualified by this condition.
Whether the applicant possesses 90% or more participation by the Government by way of equity or control.
The Board of the applicant i.e., “Sri Satya Sai Water Supply Project Board” consists of 9 Members, out of which 7 are officers /Employees of the Government of Andhra Pradesh that qualifies for 77% of Government control falling short of the designated 90% as required by the Act. Even the cost of the operation and maintenance of the water supply scheme is contributed at a ratio of 70% by the State Government, while 30% of the cost is being borne by the applicant from the water charges collected from the users. In the instant case the applicant falls short of the qualifying mark of 90% in terms of equity or control. Hence the applicant does not fit in the category of “Governmental authority”.
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