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The services provided by the Contractor are pure services of “Operation and Maintenance” of plant devoid of any supply of material or goods in the due process, accordingly it will fall under Sl.No. 25, Heading 9987 “Maintenance repair and installation (except construction) Services” attracting tax rate of 18%

Exemption from GST Questions raised before the Authority:

i) Whether the applicant qualifies as a ‘Governmental Authority’ under the Act and whether the services availed by it are exempt from the GST by virtue of Entry 3 in Notification No.12/2017-CT (Rate), dated 28.06.2017.

ii) Whether the Applicant is not liable to remit any GST to its suppliers for any services it procures by virtue of its activities of supplying water for domestic purposes.

Held that—
In the instant case the applicant falls short of the qualifying mark of 90% in terms of equity or control. Hence the applicant does not fit in the category of “Governmental authority”. The applicant does not qualify for Governmental Authority under the Act and hence services procured by it are not exempt but taxable.

The services provided by the Contractor are pure services of “Operation and Maintenance” of plant devoid of any supply of material or goods in the due process. The services under question fall under SI.No. 25, Heading 9987 “Maintenance repair and installation (except construction) Services” attracting tax rate of 18%—Satya Sai Water Supply Project Board, In Re… [2020] 20 TAXLOK.COM 163 (AAR-AP)