Goods and Services Tax

In Re: Shri Dhananjay Kumar Singh

2019 (2) TMI 64 – AUTHORITY FOR ADVANCE RULINGS, CHHATTISGARH – TMI – Rate of GST – Exempted supply or not – supply of services to Solid waste management, Garbage Collection, Disposal, Water Supply, Cleaning of Colony – Pure Services – N/N. 12/2017 dated 28th June, 2017 – Governmental Board – Authority issuing work order to the applicant i.e. Chhattisgarh Housing Board – public utility services – Held that:- Chhattisgarh Housing Board is a “Government Authority” as per No. 12/2017-State Tax (Rate) No. F-10- 43/2017/CT/V(80), Naya Raipur, Dated 28.06.2017 and as amended by Notification No. 31/2017-State Tax (Rate) No. F-10-82/2017/CT/V(146), Naya Raipur, Dated 13.10.2017 – Chhattisgarh Housing Board is a Government Authority fully owned by the State Government.

Whether the nature of service supplies being provided by the applicant falls under 12th schedule, Article 243W of the Indian Constitution? – Held that:- The service supply to be provided by the applicant by their very natu

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, Garbage Collection, Disposal, Water Supply, Cleaning of Colony. Read:-Application dated 08-09-2018 from Shri Dhananjay Kumar Singh, H.N -13, Sanyasi Para, Khamtarai, Raipur, Chhattisgarh 492001 PROCEEDINGS [U/s 98 of the Chhattisgarh Goods & Services Tax Act, 2017 (hereinafter referred to as CGGST Act, 2017)] No. STC/AAR/06/2018 Raipur, Dated 05/12/2018 The applicant M/s. Dhananjay Kumar Singh HN 13, Sanyasi Para, Khamtarai, Raipur, Chhattisgarh GSTIN 22AVZPS5945E1ZZ has filed the application U/s 97 of the Chhattisgarh Goods & Services Tax Act, 2017 seeking advance ruling as regards the applicable GST Rate on supply of services to Solid waste management, Garbage Collection, Disposal, Water Supply, Cleaning of Colony classified by the applicant as exempted supply as per Notification No. 12/2017 dated 28th June, 2017 as updated and amended time to time, 2. Facts of the case:- I. M/s. Dhananjay Kumar Singh H.N 13, Sanyasi Para, Khamtarai, Raipur (C.G.) is a service provider who

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r supply operations, garbage collection door to door and disposal, cleaning of colony i.e. garden, street and open area, drainage system, sewerage cleaning of water tank (all UG Sump & Over head tank), cleaning of common area of residential area developed by Chhattisgarh Housing Board and not handed over to the local authority by Chhattisgarh Housing Board (CGHB) are exempt, under as per notification no. 12/2017 dated 28th June, 2017 as updated and amended time to time or not. 3. Contention of the Applicant: I. Chhattisgarh Housing Board (CGHB) is a public sector undertaking of the Government of Chhattisgarh. It is a board constituted under Chhattisgarh Housing Board Act, 1972 (No. 3 of 1973). After formation of the State of Chhattisgarh in November 2000, Housing Board was one among the several Boards and Corporations liquidated by the Government. Later, however, the Government in 2004 revised its earlier decision and formed Chhattisgarh Housing Board vide Notification No. 177/3236

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e the appellate authority held that the CGHB is covered under the definition of Government Authority for the purpose of Notification No. 25/2012 dated 20.06.2012. V. The Definition of Government authority under service tax regime is also produced below as defined in Notification No. 25/2012 dated 20.06.2012 and as amended from time to time. Governmental authority means an authority or a board or any other body; (i) set up by an Act of parliament or a State Legislature; or (ii) established by Government, with 90% or more participation by way of equity or control, to carry out any function entrusted to a municipality under article 243W of the Constitution; VI. Applicant, engaged in the business of executing service contracts had been awarded a contract by the Chhattisgarh Housing Board (CGHB) for providing services in relation to Solid waste management, water supply operations, Garbage Collection door to door and disposal, cleaning of colony i.e. garden, street, and open area, drainage s

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ntion. They also furnished a written submission dated 30.10.2018, which has been taken on record. I. The applicant has quoted the judgment of M/s. The Nursery Men Co-operative Society, Lalbagh, Lalbagh Double Gate Road, Bengaluru, Karnataka in case no. KAR ADRG 18/2018, order dated 06-08-2018 = 2018 (9) TMI 1037 – AUTHORITY FOR ADVANCE RULINGS, KARNATAKA as pronounced by Authority for Advance Ruling, Karnataka, wherein it was ordered that the services of maintenance of parks provided by the society to the State Government, Central Government or a Local Authority (including BBMP) or a Government Authority, not involving transfer of property in goods either as component of a works contract or a composite supply is covered under entry No. 3 of the Notification No. 12/2017 Central Tax (Rate) dated 28-6-2017 and hence exempt. II. So the pure service contracts awarded by the Chhattisgarh Housing Board (CGHB) to them for providing services in relation to Solid waste management, water supply o

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service or other composite supplies involving supply of any goods) provided to the Central Government, State Government or Union territory or local authority or a Government by way of any activity in relation to any function entrusted to a Panchayat under Article 243G of the Constitution or in relation to any function entrusted to a Municipality under article 243W of the Constitution. Nil Nil 5.2 Applicant M/s. Dhananjay Kumar Singh has been awarded with the work order by Office of the Executive Engineer, Chhattisgarh Housing Board, 5.2. Applicant M/s. Dhananjay Kumar Singh has been awarded with the work order by Office of the Executive Engineer, Chhattisgarh Housing Board, Capital Project Division-I, Naya Raipur (C.G.) vide Order No. Work order agreement approved in ₹ 35, 11,000/- for colony maintenance work of C.G. Housing Board Colony Sector 29 Naya Raipur, Chhattisgarh. Nature of the work :- Colony maintenance work of C.G. Housing Board Colony Sector 29 Naya Raipur with solid

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i. Whether the Authority issuing work order to the applicant i.e. Chhattisgarh Housing Board is an established Governmental Board under State or Central Government or not; and ii. Whether the service supplies to be provided by the applicant falls under public utility services enumerated under 12th schedule, Article 243W of the Indian Constitution or not. 5.4 In this context, it is observed that Chhattisgarh Housing Board has been incorporated under Section 3 of the Chhattisgarh Housing Board Act, 1972; vide State Governments Notification No. 177/3236/32/2003, dated 12-02-2004. Section 4 of concerned Act provides for the Constitution of following post in the Board – Constitution of Board – The Board shall consist of the Chairman who shall be appointed by the State Government and the following other member, namely:- (a) Secretary to the Government of Madhya Pradesh in charge of each of the following departments or his nominee, namely : (i) Housing Department (ii) Finance Department (b)

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cipation by way of equity or control, to carry out an) function entrusted or a Municipality/ under article 243 W of the Constitution or to a Panchayat under article 243 G of the Constitution. Thus Chhattisgarh Housing Board is a Government Authority fully owned by the State Government. 5.6 Now for arriving at a decision as to whether the nature of service supplies being provided by the applicant falls under 12th schedule, Article 243W of the Indian Constitution, the following works enumerated under Article 243W needs consideration. Article 243W in the Constitution of India 1949 243W. Powers, authority and responsibilities of Municipalities, etc Subject to the provisions of this Constitution, the Legislature of a State may, by law, endow (a) the Municipalities with such powers and authority as may be necessary to enable them to function as institutions of self government and such law may contain provisions for the devolution of powers and responsibilities upon Municipalities, subject to

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otion of ecological aspects. 9. Safeguarding the interests of weaker sections of society, including the handicapped and mentally retarded. 10. Slum improvement and up gradation. 11. Urban poverty alleviation. 12. Provision of urban amenities and facilities such as parks, gardens, playgrounds. 13. Promotion of cultural, educational and aesthetic aspects. 14. Burials and burial grounds; cremations, cremation grounds and electric crematoriums, 15. Cattle pounds; prevention of cruelty to animals. 16. Vital statistics including registration of births and deaths. 17. Public amenities including street lighting, parking lots, bus stops and public conveniences. 18. Regulation of slaughter houses and tanneries. In the impugned matter in hand the applicant M/s. Dhananjay Kumar Singh has been awarded a work order by the office of the Executive Engineer, Chhattisgarh Housing Board, Capital Project Division-I, Naya Raipur (C.G.) vide Order No. having work order agreement approved for ₹ 35,11,0

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Board does not involve any transfer/sale of any goods. Services specified under serial no. 3, chapter 99 of Notification No. 12/2017-State Tax (Rate) No. F-10-43/2017/CT/V(80), Naya Raipur, Dated 28.06.2017 provides exemption, as under :- Pure services (excluding works contract service or other composite supplies involving supply of any goods) provided to the Central Government, State Government or Union territory or local authority or a Government by way of any activity in relation to any function entrusted to a Panchayat under Article 243G of the Constitution or in relation to any function entrusted to a Municipality under article 243W of the Constitution. On the above basis, we come to the considered conclusion that the said services provided by the applicant to Chhattisgarh Housing Board qualifies being placed under the category of services as stipulated under Notification No. 12/2017-State Tax (Rate) No. F-10-43/2017/CT/V(80), Naya Raipur, Dated 28.06.2017 and hence is exempt. In

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