In re Shyama Chatterjee (GST AAR West Bangal)
The GST Authority for Advance Rulings (AAR) West Bengal examined whether the services provided by Shyama Chatterjee, involving survey, design, and preparation of detailed project reports (DPRs) for water supply schemes, qualify as “pure services” under GST Notification No. 12/2017-CT(R). The applicant received various work orders from municipalities and government bodies in West Bengal, Assam, and Madhya Pradesh. The AAR considered three key criteria: whether the services are pure services (excluding any supply of goods), whether the recipients are government bodies or local authorities, and whether the services relate to functions entrusted to Panchayats or Municipalities under the Constitution. The AAR concluded that the services provided by the applicant, which do not involve the supply of goods, qualify as pure services. Since the services were rendered to local authorities and state governments, they meet the criteria outlined in the notification and are eligible for exemption from GST. This ruling provides clarity on the tax treatment of such services under the GST regime.
FULL TEXT OF THE ORDER OF AUTHORITY FOR ADVANCE RULING, WEST BANGAL
1.1 At the outset, we would like to make it clear that the provisions of the Central Goods and Services Tax Act, 2017 (the CGST Act, for short) and the West Bengal Goods and Services Tax Act, 2017 (the WBGST Act, for short) have the same provisions in like matter except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the WBGST Act. Further to the earlier, henceforth for the purposes of these proceedings, the expression “GST Act” would mean the CGST Act and the WBGST Act both.
