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GST: Mapping Services are Pure Labour Services provided to Municipalities/ Govt. falls under Article 243W, eligible for Exemption, says AAR [Read Order]

By Mariya Paliwala -

The Maharashtra Authority of Advance Ruling (AAR) ruled that the mapping services are Pure Labour Services provided by the applicant to Municipalities or Government falls under Clause 1 and 2 of 25th Schedule of Article 243W and so it is eligible for exemption under notification 12/2017 dated June 28, 2017.

The applicant, Core Project Engineers and Consultants Pvt. Ltd. provided the mapping services to various Municipal Corporations and Councils. the services provided by them are Pure Labour Services, provided to Government or Local authority or a governmental authority by way of an activity in relation to any function entrusted to a Panchayat under Article 243G of the Constitution or in relation to any function entrusted to a Municipality under article 243W of the Constitution.

The applicant sought the advance ruling on the issue whether the services provided by the Applicant are covered under Clause 1 & 2 of Twelfth Schedule of Article 243W; and  Whether the services provided by the applicant fall under the Exemption Notification No. 12/2017 dated June 28, 2017 (Entry Na 1 of Exemption Notification) as amended from time to time as the services are in the nature of pure labour services.

The authority consists of members A.A. Chahure and P. Vinitha Sekhar ruled that the mapping service are Pure Labour Services provided by the applicant to Municipalities or Government falls under Clause 1 and 2 of 25th Schedule of Article 243W and so it is eligible for exemption under notification 12/2017 dated June 28, 2017.

“We have no doubt that the services provided by the applicant to the various Municipal Corporation & Councils are actually aiding and helping the said Municipal Corporation & Councils to perform the functions entrusted to them under Article 243W of the Constitution,” the AAR observed.

To Read the full text of the Order CLICK HERE