Telephone services provided by the applicant cannot be regarded as pure services and these cannot be held as the activities in relation to any of the functions entrusted under Article 243W of the Constitution on the strength of the words “in relation to”.
Levy of GST- In the instant case, applicant is seeking Advance Ruling on the following issues:
(i) Whether the supply of telephone service to Greater Hyderabad Municipal Corporation (GHMC) is exempted? and
(ii) Telephone invoices are to be issued with/without GST?
in order to be eligible for exemption under entry No. 3 of the Not. No. 12/2017- CT (R), the service must be by way of any activity in relation to any of the aforesaid functions. It appears that the telephone services are basically used by the personnel of the GHMC in their offices and provision of the said services has no relation whatsoever to the above mentioned functions.
It was concluded thereunder that the services rendered by a person must have a direct or a proximate relation to the subject matter of the taxing entry and the context in which the words ‘in relation to’ are used has to be borne in mind to judge the extent of the scope of an entry which may be of wide amplitude.
Held that- telephone services provided by the applicant cannot be regarded as pure services and these cannot be held as the activities in relation to any of the functions entrusted under Article 243W of the Constitution on the strength of the words “in relation to”.
Accordingly, we hold that the services provided by the applicant are not eligible for exemption as provided for under entry No. 3 of the Not. No. 12/2017-CT(R) dated 28.06.2017
Since the services provided by the applicant are taxable services, the tax invoices issued by the applicant should indicate the amount of tax which shall form part of the price at which such supply is made as required under Sec. 33 of the CGST Act, 2017.
Telephone services provided by the applicant cannot be regarded as pure services and these cannot be held as the activities in relation to any of the functions entrusted under Article 243W of the Constitution on the strength of the words “in relation to”.
Levy of GST- In the instant case, applicant is seeking Advance Ruling on the following issues:
(i) Whether the supply of telephone service to Greater Hyderabad Municipal Corporation (GHMC) is exempted? and
(ii) Telephone invoices are to be issued with/without GST?
in order to be eligible for exemption under entry No. 3 of the Not. No. 12/2017- CT (R), the service must be by way of any activity in relation to any of the aforesaid functions. It appears that the telephone services are basically used by the personnel of the GHMC in their offices and provision of the said services has no relation whatsoever to the above mentioned functions.
It was concluded thereunder that the services rendered by a person must have a direct or a proximate relation to the subject matter of the taxing entry and the context in which the words ‘in relation to’ are used has to be borne in mind to judge the extent of the scope of an entry which may be of wide amplitude.
Held that- telephone services provided by the applicant cannot be regarded as pure services and these cannot be held as the activities in relation to any of the functions entrusted under Article 243W of the Constitution on the strength of the words “in relation to”.
Accordingly, we hold that the services provided by the applicant are not eligible for exemption as provided for under entry No. 3 of the Not. No. 12/2017-CT(R) dated 28.06.2017
Since the services provided by the applicant are taxable services, the tax invoices issued by the applicant should indicate the amount of tax which shall form part of the price at which such supply is made as required under Sec. 33 of the CGST Act, 2017.