The Punjab Authority for Advance Ruling (AAR), held that Man power supply made to Punjab Water Supply and Sewerage Board, attracts Nil GST.
M/s Tarsem Chand Garg Contractor, is engaged in the business of supplying manpower to Punjab Water Supply and Sewerage Board for sewerage cleanliness. The appellant has sought advance ruling on whether manpower supply made to Sewerage Boards for sewerage cleanliness is covered under trade mention in Serial No. 3 of Notification no. 12/2017 dated 28.06.2017.
The Jurisdictional Authority submitted that the registered person has stated that he supplies manpower to Punjab Water 86 Sewerage Board for sewerage cleanliness. The Punjab Water 8s Sewerage Board is a body constituted under the Punjab Water Supply and Sewerage Board Act, 1976 and function under the administrative control of department of Local Government, Government of Punjab.
Therefore, the Board is a government authority. Further as per Entry No. 6 which is read as “Public Health, Sanitation Conservation and Solid Waste Management” of Schedule Twelfth of the Constitution of India, these functions are entrusted to a Municipality under article 243W of the Constitution of India. Therefore, sewerage cleaning work can be said to be falling under sanitation conservancy work.
A Division Bench consisting of Varinder Kaur, Additional Commissioner of Central Tax (Central Tax) and Viraj Shyamkarn Tidke, Additional Commissioner of State Tax-1 (State Tax).ruled that “In this regard, this -office is of the view that in accordance with Notification NG. 1.2/2017 Central Tax (Rate) dated 28.06.2017 of Govt. of India “Pure services (excluding works contract service or other composite supplies involving supply of any goods) provided to the Central Government, State Government or Union territory or Local authority or a Government authority by way of any activity in relation to any function entrusted to a panchayat under article 243G of the Constitution or in relation to any function to any function entrusted to a Municipality under article 243W of the Constitution” are nil rated.”
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