Advance Ruling- Classification of Service- The applicant is engaged in providing a wide range of professional consulting services viz architecture, engineering (MEPF), planning, urban design, landscape, sustainability, research and art, building design, interior design, surveying, environmental sciences, project management and project economics.

The applicant has been granted work order no. 84/1.2.2022 and 172/22.1.2021 to provide architectural consultancy service to Surat Municipal Corporation [for short - SMC], regarding the project namely SMIMER Hospital & College Campus & further to prepare architectural and working drawings as required for the construction of the project.

 It is the applicant’s averment that SMC, the recipient of the service, has contended that SMIMER Hospital and College is covered under the 12th Schedule of Article 243W of the Constitution of India & is thus exempt, in terms of entry no. 3 of notification No. 12/2017-Central (Rate), it being a pure service. Contra- the applicant however states that according to them, their services would be covered under entry no. 21 of notification No. 11/2017-Central Tax (Rate) & is liable to GST @ 18%.

In view of the foregoing, the applicant has filed this application seeking advance ruling on the below mentioned questions viz

1. Whether the ‘Architectural Consultancy Service’ provided by the applicant to Surat Municipal Corporation for construction of SMIMER Hospital & College Campus is covered under entry no. 3 of notification No. 12/2017-Central (Rate) dated 28.6.2017 & thus is exempt?

2. If the exemption under entry no. 2 of the notification No. 12/2017-Central (Rate) dated 28.6.2017 is applicable to the applicant, accordingly will the ‘pure services’ provided by a sub contractor to the applicant also be covered under the said exemption? Or if the applicant provides sub contract of pure services to another contractor of the SMC will the exemption be available to the applicant provided that the exemption is available to the direct contractor of SMC?

3. If the entry number 3 of the notification No. 12/2017-Central (Rate) dated 28.6.2017 is not applicable to the applicant then accordingly the services provided by the applicant will be taxed under which HSN/SAC code and the rate of tax thereof?

Authority for Advance Ruling, Gujarat held that-

1. The ‘Architectural Consultancy Service’ provided by the applicant to Surat Municipal Corporation [SMC] for construction of SMIMER Hospital & College Campus is covered under entry no. 3 of notification No. 12/2017-Central (Rate) dated 28.6.2017 & thus is exempt from GST.

2.(i) In view of the findings listed in para 21 supra, we refuse to answer the question as to whether the exemption under entry no. 3 of the notification No. 12/2017-Central (Rate) dated 28.6.2017 would be applicable to the sub-contractor of the applicant, if the same is available to the applicant.

2(ii) If the applicant provides sub contract of pure services to another contractor of the SMC the supply would not fall within the ambit of entry no. 3 of the notification No. 12/2017-Central (Rate) dated 28.6.2017 and would be leviable to GST.

3. Since the first question is answered in affirmative, the third question becomes infructuous.