AMTS (Ahmedabad municipal transport service) would be qualified as 'Local Authority'. The service recipients of AMTS are required to pay GST under reverse charge mechanism on advertisement service
Levy of GST- In the instant case, applicant Ahmedabad municipal transport service (AMTS) is engaged in rendering passenger transportation services and runs public buses in the city of Ahmedabad within the limits of Municipal Corporation.
the applicant sought the Advance Ruling on the following question:
Part A- Whether AMTS would be qualified as 'Local Authority' as defined under the Central Goods and Services Tax Act, 2017?
Part B -Whether AMTS is liable to pay GST on procurement of security services received from any person other than body corporate under reverse charge mechanism, considering the exemption granted in Sl. No. 3 of Notification No. 12/2017 - Central Tax (Rate) or Sl. No. 3 of Notification No. 09/2017 - IGST (Rate)?
Part C -Whether AMTS is required to pay GST on advertisement services or the service recipient of AMTS is required to pay GST under reverse charge mechanism considering Notification No. 13/2017-Central tax (Rate) dated 28-06-2017?
Part D - Whether AMTS is required to be registered as a Deductor under GST as per the provision of Section 24 of the CGST Act?
Held that-
1. Ahmedabad municipal transport service (AMTS), is a statutory authority discharging municipal functions (although not a municipality as required to be constituted under Art. 243Q of the Constitution), is legally entitled to and entrusted by the State Government with the control or management of a local fund as defined in Gujarat Treasury. In view of the above discussion we hold that Ahmedabad municipal transport service (AMTS) can be termed as a local authority under Section 2(69)(c) of the GST Act.
2. the applicant being a “local authority” in terms of Section 2(69) of CGST Act, 2017 as discuss in above Para’s is not liable for payment of GST under Reverse Charge Mechanism on receipt of Security Service.
3. applicant being a “local authority” is providing advertisement service to the business entity, accordingly applicant is not liable to payment of GST but under reverse charge mechanism recipient of Service is liable to payment of GST.
4. we hold that the applicant being “local authority” is required to obtain registration as GST TDS deductor in terms of Section 51 of CGST Act, 2017.
AMTS (Ahmedabad municipal transport service) would be qualified as 'Local Authority'. The service recipients of AMTS are required to pay GST under reverse charge mechanism on advertisement service
Levy of GST- In the instant case, applicant Ahmedabad municipal transport service (AMTS) is engaged in rendering passenger transportation services and runs public buses in the city of Ahmedabad within the limits of Municipal Corporation.
the applicant sought the Advance Ruling on the following question:
Part A- Whether AMTS would be qualified as 'Local Authority' as defined under the Central Goods and Services Tax Act, 2017?
Part B -Whether AMTS is liable to pay GST on procurement of security services received from any person other than body corporate under reverse charge mechanism, considering the exemption granted in Sl. No. 3 of Notification No. 12/2017 - Central Tax (Rate) or Sl. No. 3 of Notification No. 09/2017 - IGST (Rate)?
Part C -Whether AMTS is required to pay GST on advertisement services or the service recipient of AMTS is required to pay GST under reverse charge mechanism considering Notification No. 13/2017-Central tax (Rate) dated 28-06-2017?
Part D - Whether AMTS is required to be registered as a Deductor under GST as per the provision of Section 24 of the CGST Act?
Held that-
1. Ahmedabad municipal transport service (AMTS), is a statutory authority discharging municipal functions (although not a municipality as required to be constituted under Art. 243Q of the Constitution), is legally entitled to and entrusted by the State Government with the control or management of a local fund as defined in Gujarat Treasury. In view of the above discussion we hold that Ahmedabad municipal transport service (AMTS) can be termed as a local authority under Section 2(69)(c) of the GST Act.
2. the applicant being a “local authority” in terms of Section 2(69) of CGST Act, 2017 as discuss in above Para’s is not liable for payment of GST under Reverse Charge Mechanism on receipt of Security Service.
3. applicant being a “local authority” is providing advertisement service to the business entity, accordingly applicant is not liable to payment of GST but under reverse charge mechanism recipient of Service is liable to payment of GST.
4. we hold that the applicant being “local authority” is required to obtain registration as GST TDS deductor in terms of Section 51 of CGST Act, 2017.