The Maharashtra Authority for Advance Ruling ( AAR ) in a recent order has held that the work that has been completed as a part of the Jal Jeevan Mission carried out by the Government of India ( GoI ) before the year 2022 is to be exempted from Goods and Service Tax ( GST ).
The Applicant Geospatial Studios LLP is a partnership firm, and it is registered under the Center Goods and Service Act, 2017 CGST and State Goods and Service Act, 2017 (SGST).
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One of the main issues raised by the applicant was that what would be the tax that would be levied on with respect to work allotted by Maharashtra Jeevan Pradhikaran (‘MJP’) as a part of the Jal Jeevan Mission before January 2022.
In Maharastra, supply/drainage/sanitation/stormwater schemes were implemented through the Maharashtra Jeevan Authority Act in 1976. An amendment was brought to the Act in the year 2022, and there is a perception that the activity of the applicant is no longer to be exempted.
A tax rate of 18% is to be levied. Still, the issue faced here is that for some Zilla Parishads, some state governments add GST payable at 18% to the invoice payable for pure service activity performed by tax persons identically situated to that performed by the applicant.
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So the question here is will tax be charged with respect to the work performed prior to the amendment?
The bench observed that from the agreement between the applicant and MJP, the applicant has provided technical consultancy for project development and management support services for the water supply scheme at various locations implemented by the MJP for the supply of water, which are the functions stated in articles 243G and 243W.
The bench comprising of Ajaykumar V. Bonde (Joint Commissioner of State Tax) and Priya Jadhav (Joint Commissioner of Central Tax) held that no tax shall be levied in respect of work allotted by Maharashtra Jeevan Pradhikaran (‘MJP’) as a part of the Jal Jeevan Mission, which is a mission of the Government of India allotted, performed, and invoiced before 01.01.2022.
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