The Madhya Pradesh Authority of Advance Ruling (AAR) ruled that the amount recovered by the applicant, Atal Bihari Vajpayee Institute of Good Governance & Policy Analysis from other government departments for doing research work and study, which help them make policies or understand its impact, shall be exempt subject to satisfaction of conditions laid down under Entry No. 3 of Notification No 12/2017 CTR dated 28th June 2017.
The Applicant, Atal Bihari Vajpayee Institute of Good Governance & Policy Analysis (AIGGPA) is established as a Society, registered under the MP Society Registrikaran Act 1973. It is a part of the Department of Public Service Management Department, Government of Madhya Pradesh.
The Institute’s Governing Council is the apex body and is presided over by the Chief Minister of Madhya Pradesh. The Governing Body of the Institute comprises senior cabinet ministers from different departments of Government of MP, Chief Secretary, and other Principal Secretaries.
For carrying on research work, the institute engages experts of different domains, provide them all the requisite resources, and facilitate remuneration and entitlements as per government rules. Such experts are hired from IIM, IIT, subject matter specialists from different fields, and experienced retired senior officers.
The applicant sought the advance ruling on the issue of whether the amount recovered by the applicant from other government departments for doing research work and study, which helps them make policies or understand its impact, is chargeable to GST.
The other issue raised was whether services provided by the applicant to other government departments are covered under the entry No. 8 of Notification No. 12/2017 Central Tax (Rate) dated 28th June 2017.
The Authority consisting of Virendra Kumar Jain and Manoj Kumar Choubey ruled that the of works being undertaken by the applicant is in relation to the functions entrusted to Municipalities under Article 243 W and to panchayats under Article 243G of the Constitution, and, therefore, it is exempt from the tax being covered under Sr. No. 3 of Notification No 12/2017 CTR dated 28th June 2017 issued under Central Goods and Services Tax Act, 2017 and corresponding notifications issued under the Madhya Pradesh Goods and Services Tax Act, 2017.
“Having carefully considered the Entry No. 8 of Notification No 12/2017 CTR dated 28th June 2017 we hold that such entry covers services provided by a government or local authority only, however, the applicant does not cover within the definition of Government or local authority hence Services provided by the applicant together Government department under the entry no 8 of Exemption Notification No. 12/2017 CTR dated 28th June 2017,” the AAR said.Subscribe Taxscan AdFree to view the Judgment