The Authority of Advance Rulings (AAR), Uttarakhand recently held that the Goods and Services Tax ( GST ) cannot be levied on the services or materials procured from Government authorities to another Government Authority.
The applicant, a society registered under the Society Registration Act, 1860 and administrative control of Information Technology Department of Government has requested an advance ruling on the applicability of the GST on the services or materials procured from the Government or Government authorities.
After considering the contentions, the Authority noted that ITDA is a local authority under Uttarakhand Government. Further, it was noted that the applicant has submitted an MOU with IIT, M relates to design, development and fie1d testing of “Abrostat Communication System”.
“To determine the status of IIT Bombay, the Indian Institutes of Technology (IITs) are autonomous public institutions of higher education, located in India. They are governed by the Technology Act, 1961 which has declared them as institution importance and lays down their powers, duties, and framework for governance, etc. Each IIT is an autonomous institution, linked to a common IIT Council, which oversees their administration. Human Resource Development is the ex-officio Chairperson of The President of India is the most the powerful person in the structure of IITs, being the ex officio Visitor and having residual powers. Directly under the President is the IIT Council, which comprises in-charge of technical education in the Union Government, the C IITs, the Directors of all IITs. the Chairman of the Univ Commission, the Director General of CSIR, the Chairman of IISc of IISc, three members of Parliament, the Joint Council Secretary Human Resource and Development, and three appointees each of the Government, AICTE and the Visitor. The amendments in the Technology Act, 1961 is to be made by the Parliament. Thus IIT Bombay falls under the definition of Government in terms of Section 2(53) Goods and Services Tax Act, 2017 wherein the term “Government” means Central Government,” the authority said.
It was, therefore, held that the there is no tax liability on the applicant while receiving services from the IIT Mumbai since under the present law when a Government authority providing services to another Government authority is exempted from GST.
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