Supply of Fire Fighting System to Jaipur Smart City Limited is Deemed Service to Governmental Authority: AAAR [Read Order]

The Appellate Authority for Advance Ruling (AAAR), Rajasthan ruled that the fire fighting system with pump house Operating & Maintenance supplied by the appellant to M/s. Jaipur Smart City Limited is to be considered a service to a Governmental Authority.

The appellant in the submissions, furnished a certificate of completion of work dated 04.09.2023 issued by Jaipur Smart City Limited. It certifies that the appellant  has completed the fire rescue using  fire fighting system with Pump House in ABD Area, Jaipur

A two member bench of the Rajasthan AAAR comprising Mahendra Ranga, Member (Central Tax) and Ravi Kumar Supur, Member (State Tax) observed that supply of fire fighting system to Jaipur Smart City Limited is deemed service to governmental Authority.

The authority ruled that upon reviewing the Letter of Acceptance dated 19.02.2021 issued by M/s JSCL to the appellant it is evident that the appellant’s work involves the construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of a civil structure or other original works. This aligns with the definition provided in Item number (vi) of the aforementioned notification.

The Scope of work awarded to the appellant, covering construction, installation and related activities. The services provided by the appellant fall under the category of construction, erection, commissioning, and related works, as outlined in Item number (vi) of the mentioned Notification. Consequently, it is established that the specified services are subject to GST at the rate of 12% (6% CGST and 6% SGST) until 31.12.2021, after which the words ‘a Governmental Authority or a Government Entity’ have been omitted from the relevant notification.

The authority bench thus ruled that this falls within the scope of Item number (vi) in Column (3) of serial number 3 of Notification No. 11/2017 – Central Tax (Rate) dated 28.06.2017, as amended by Notification No. 24/2017 – Central Tax (Rate) dated 21.09.2017.

Hence it was ruled that, the fire fighting system with pump house Operating & Maintenance supplied by the appellant to M/s. Jaipur Smart City Limited is to be considered a service to a Governmental Authority.

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