M/s. Amaravathi Metro Rail Corporation Limited

The applicant is incorporated under the Companies Act,2013 to undertake the development of Vijayawada Metro Rail Project. It undertakes transport studies such as comprehensive Mobility Plan, Transit Oriented Development Plan, Integrated Public Transport Plan, and Non Motorized Transport plan and preparation of Detailed Project Reports (DPRs) of the Metro Rail Projects in Andhra Pradesh. The above activities of the applicant are undertaken by third party vendors providing Consultancy Services on behalf of the applicant.

The applicant sought advance ruling on following issues:
1. Whether the applicant is a Government authority as per the Notification No. 12/2017 of Central Tax ( Rate), read with Notification  No. 32/2017 of Central Tax (Rate)?
2. Whether the consultancy services for preparation of transport studies such as comprehensive mobility plan, transit oriented development plan, NMT plan and consultancy services of transaction advisors/preparation of DPRs comes within the purview of the functions of Municipality under article 243W read with Twelfth Schedule to the constitution of India, to fall within the purview of the aforesaid exemption notification?

In terms of notification 12/2017, “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 any Government,
with ninety per cent or more participation by way of equity or control, to carry out any function entrusted to a municipality under article 243W of the Constitution;

The applicant is a SPV which is set up vide Government of Andhra Pradesh and it has also submitted that it is 100% owned by state of A.P. therefore the applicant is a Government authority as per the Notification No. 12/2017 – Central Tax dated 28^th June 2017.

Further more, the proposed activity of AMRCL also appears to be getting covered under following items of the 12^th Schedule:
“Public amenities including street lighting, parking spaces, bus stops and public conveniences”

All activity as submitted by applicant relating to transport studies is in the nature of urban transportation and urban planning and the same is covered under the purview of the functions of Municipality under article 243W read with Twelfth Schedule to the constitution of India, and the same fall within the purview of the aforesaid exemption notification 12/2017-Central Tax (Rate).
CRUX : 1. The applicant  is a Government Authority as per Notification 12/2017-CT (Rate, dated 28.06.2017) as it is 100% owned by state of A.P.

2. The consultancy services for preparation of transport studies such as comprehensive mobility plan, transit oriented development plan, NMT plan and consultancy services of transaction advisors/preparation of DPRs comes within the purview of the functions of Municipality under article 243 read with Twelfth Schedule to the constitution of India, and accordingly, falls within the purview of the exemption notification 12/2017-Central Tax (Rate).