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Only the services /activities undertaken for Central Government, State Government, Local Authority or Governmental Authority, for which the consideration is in the form of grants, are exempt from the payment of applicable GST.

Classification of service— In the instant case, the applicant is seeking an advance ruling on following issues:

(a) Whether the activities undertaken for implementing various construction/ repair/ renovation/ addition/ alteration projects by GMVN Ltd. for Central Government, State Government, Local Authority or Governmental Authority the consideration for which is received in the form of grants amounts to supply under the provisions of Goods & Services Tax laws and are thus chargeable to GST?

(b) In case the above activities amount to supply, whether the supply is classified as supply of goods or supply of services?

(d) Whether supply of any service by GMVN Ltd., to the Central Government, State Government, Local Authority or Governmental Authority for which the consideration is received in the form of Grants is exempt under notification No. 12/2017- Central Tax (Rate) (As amended) dated the 28th June, 2017?

by virtue of Notification No. 12/2017-CT (Rate) dated 28.06.2017 any supply of services by a Government Entity to Central Government, State Government' Union territory, local authority or any person specified by Central Government, State Government, Union territory or local authority is exempt from payment of GST, if the consideration received from Central Government, State Government, Union Territory or local authority, is in the form of grants. We find that from the wordings of the said notification it is clear that exemption is available, only, if the consideration received is in the form of grants and has to be utilized for the intended purpose only. The litmus test in such cases would be the character of the consideration and if it qualifies to be a grant then and only then the benefit under the provisions of Notification No. 12/2017-CT (Rate) dated 28.06.2017, is available.

Held that— (l) Only the services /activities undertaken for Central Government, State Government, Local Authority or Governmental Authority, for which the consideration is in the form of grants, are exempt from the payment of applicable GST.

(2) The work of "construction of 'Shaheed Dwar' at Banjarawala, Dehradun" and "construction of 'Creation of barrier free environment for PWDs’ and 'tourist rest houses in various district of Uttarakhand State" are classified as supply of services.

(3) Exemption from payment of GST is available for the work of 'Shaheed Dwar' at Banjarawala, Dehradun and construction of 'Creation of barrier free environment for PWDs and tourist rest houses in various district of Uttarakhand State'.

(4) Exemption at SI. No. 9C of the Notification No. 12/2017-CT (Rate) dated 28.06.2017 is available, only if the consideration is in the form of Grants.

Only the services /activities undertaken for Central Government, State Government, Local Authority or Governmental Authority, for which the consideration is in the form of grants, are exempt from the payment of applicable GST.

Classification of service— In the instant case, the applicant is seeking an advance ruling on following issues:

(b) In case the above activities amount to supply, whether the supply is classified as supply of goods or supply of services?

(4) Exemption at SI. No. 9C of the Notification No. 12/2017-CT (Rate) dated 28.06.2017 is available, only if the consideration is in the form of Grants.