The West Bengal Authority of Advance Ruling (AAR) ruled that no GST is applicable on Pure services provided to the Directorate of Public Health Engineering, Government of West Bengal.
The applicant, C M S Engineering Concern is stated to be engaged in the operation of water pump and safeguarding pumping machinery at various Pump Houses in different districts like South 24 Parganas, North 24 Parganas, Howrah, Nadia, etc. for the supply of drinking water to the public and hospitals upon receipt of work order from Directorate of Public Health Engineering, Government of West Bengal (PHE Directorate).
The applicant is of the opinion that he provides services to local authorities, i.e., Panchayat and Municipality whose power and duties are described in Article 243G and Article 243W of the Constitution of India. The services are described in the Eleventh and Twelfth Schedule of the Constitution of India attached to Article 243G (Panchayat) and Article 243W (Municipality). Both of the said Schedules contain ‘Drinking Water’ and ‘Water supply for domestic, industrial and commercial purposes.
The applicant has sought advance ruling on the issue as to whether the services provided by him are exempt from GST or not. In other words, whether the aforesaid supply of services shall get covered under entry serial number 3 of the Notification No. 1136 F.T. dated 28.06.2017.
The two-member bench of Susmita Bhattacharya and Jyoti Banik ruled that Pure services (without the involvement of any supply of goods) provided by the applicant to the Directorate of Public Health Engineering, Government of West Bengal, as enumerated in the application, is exempt from GST vide entry serial number 3 of the Notification No. 1136 F.T. dated 28.06.2017 [corresponding central Notification No. 12/2017 – Central Tax (Rate) dated 28.06.2017], as amended from time to time.
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