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Sheladia Associates Inc. v/s Shri H.K.
Hawngliana, Member and Sanjay
Prasad, Member (Central Tax)
Order Dated 28/03/2019
Issue: (i) Whether the consultancy services provided by applicant to the recipient under the contract for upgrading of 81 KM length of State Highways and major District Roads to the Government of Mizoram are activity in relation to function entrusted to Panchayat or Municipality under Article 243G or Article 243W respectively, of the Constitution of India?
(ii) Whether the consultancy services provided by applicant under the Contract to Government of Mizoram are Pure Services qualifying for exemption from levy of CGST and Mizoram GST, respectively, as notified in serial number 3 of Notification no. 12/2017-Central Tax (Rate), dated 28-6-2017, issued under CGST Act, 2017.
Crux: The services provided by the applicant in this case are
not in relation to any function entrusted to any Panchayat or
Municipality under Article 243G and Article 243W of the Constitution
respectively. Hence, benefit of exemption from tax in terms of serial
no. 3 of Notification no. 12/2017-Central Tax (Rate), dated 286-2017 and
the corresponding notification under MGST Act, 2017 is not available to
the applicant. Thus, the applicant is within its rights under the CGST
and SGST Acts for charging GST to the Service Recipient on the service
value for the services provided under the Contract.
Order
Summary
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Notification No. 12/2017
Central Tax (Rate) |