Service of Geophysical Survey Investigation is exempted from GST: AAR [Read Order]

Service of Geophysical survey - investigation - GST - AAR - Taxscan

The Tamil Nadu Authority of Advance Ruling (AAR) ruled that the Service of Geophysical survey investigation is exempted from GST.

The Applicant, Tamil Nadu Water Supply and Drainage Board has stated that it is a government Organization/Authority executing the water supply and underground sewerage works for urban local bodies/village panchayats.

They have established totally 4 material quality testing labs to ensure the quality of materials used by the contractors under the Turnkey system in the works executed by TWAD. Quality control laboratories in TWAD Board comprising one for each region at Coimbatore (established in 1999), Madurai(2001), Trichy (2014) and Tindivanam (2014) with test facilities as per IS standard specifications are functioning. The laboratories are fully equipped with the necessary machinery, equipment, and instruments for conducting the parametric tests as per the procedures postulated in the relevant Bureau of Indian Standards.

The applicant has sought the advance ruling on the issue of applicability of the Notification issued under the provisions of the CGST Act,2017 in respect of Rendering “Pure Services” (testing of materials for quality) by TWAD Board which is the Governmental Authority relating to water supply and sewerage schemes to urban and rural beneficiaries which are covered under Twelfth Schedule of Article 243 W of the constitution. Therefore, the services (Quality material testing charges) rendered by the TWAD Board are exempted from CGST under Sl.No.3 of the Notifications No.12/2017 CT(Rate) dated 28.06.2017 as amended and exempted from SGST under Sl.No.3 of the G.O( Ms) No.73 dated 29.06.2017 No.II/CTR/532(d-15)/2017 as amended.

Yet another ruling was sought in respect of the applicability of Notification issued under the provisions of the CGST Act,2017: For conducting Geological surveying and testing (Pure Services) to identify the water potentiality by TWAD Board which is Governmental Authority relating to water supply schemes to urban and rural beneficiaries which are covered under Twelfth Schedule of Article 243W of the constitution. Therefore, the services (Geological surveying and testing charges) rendered by the TWAD Board are exempted from CGST under SL.No.3 of the Notification 12/2017-CT (rate) dated 28.06.2017 as amended and exempted from SGST under Sl.No.3 of the G.O(Ms) No.73 dated 29.06.2017 No.II/CTR/532(d-15)/2017 as amended.

The coram of Kurinji Selvan and B. Sethilvelavan ruled that the services provided by the applicant, namely, Quality material testing works are not exempted from Goods and Services Tax in terms of entry no.3 of the Notification 12/2017- Central Tax (Rate) dated June 28, 2017, as amended.

“The service of Geophysical survey investigation is exempted from Goods and Service Tax terms of entry no.3 of the Notification 12/2017- Central Tax (Rate) dated 28.06.2017 subject to conditions,” the AAR ruled.

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