The Chhattisgarh Authority for Advance Ruling (AAR) has recently held that service provided by Chhattisgarh Housing Board was not eligible for Goods and service Tax at nil rate.
The applicant Call Me Services is engaged in man power supply, contract staffing, security guards and business auxiliary services. Applicant has been awarded a contract awarded by Chhattisgarh Housing Board (CGHB) for providing services in relation to maintenance of various colonies developed by the CGHB and not handed over to the local authority for its maintenance.
The applicant has sought an advance ruling on the issue of whether the service provided by the applicant in relation to maintenance of various colonies developed by CGHB and not handed over to the local authority are exempt from GST.
Alok chopra the authorized representative for the applicant submit that Chhattisgarh Housing Board comes under Indian Constitution’s Article 243W and twelfth schedule service in relation to a function of municipality and exempt under the central tax notification No 12/2017
The bench observed that the issue raised in the application squarely covered under section 97(2) (b) of the Central Goods and Service Tax Act 2017.
The jurisdictional Assistant Commissioner of State Tax in his reply opinion that supply provided by the applicant is covered under SAC 9985 and the same attract 18% GST.
The Deputy Commissioner CGST content that service mentioned in the application filed by the applicant would not be covered under the exemption category as prescribed in the notification no 12/2017 hence CGHB would not fall under the state/central government local / state authority.
The authority while discussing the issue observed that the Chhattisgarh Housing Board did not fall in the category of government or local body. Also section 2(69) of the Central Goods and Service Tax Act 2017 listed the municipalities, and panchayat and other local authorities.
As per the Article 243G and 243W of Indian constitution entrusted the function to municipalities, and panchayat and other local authorities therefore supply of security guard is forthcoming from the tender document could not be termed as functions entrusted to a panchayat or municipality.
After considering the submissions made by the applicant and central and state jurisdictional authorities the member of authority Sonal Misra and Abinav Agarval ruled that service provided by the application relation to maintenance of various colonies developed by Chhattisgarh Housing Board and not handed over to the local authority by CGHB are not eligible for the benefit of nil rates GST.
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