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The services provided by the applicant in relation to maintenance of various colonies developed by Chhattisgarh Housing Board (CGHB) and not handed over to the local authority by CGHB, is found not eligible for the benefit of Nil rate of GST provided under Sr. no. 3/3A of exemption Notification no. 12/2017-Central Tax (Rate).

Classification of service— In the instant case, the applicant seeking advance ruling regarding GST exemption on the services provided in relation to maintenance of various colonies developed by CGHB and not handed over to the local authority by CGHB under SI. No. 3 of the Exemption Notification GST Notification No. 12/2017-Central Tax (Rate) dated 28/06/2017.

The Applicant has been awarded a contract by Chhattisgarh Housing Board (herein referred to as CGHB) for providing services in relation to maintenance of various colonies developed by Chhattisgarh Housing Board at Atal Nagar, Naya Raipur and not handed over to the local authority for its maintenance.

The issues covered in the instant case in hand is regarding the applicability of exemption from GST on the services provided by the applicant, as stipulated under SI. No. 3 of exemption Notification no. 12/2017Central Tax (Rate) dated 28.6.2017 as amended.

The applicant is of the view that they are exempt from the liability of GST in terms of clause 3 of the Notification No 12/2017 supra, as they are providing services which are activities in relation to functions entrusted to a Municipality under article 243W of the Constitution.

The exemption under entry 3 (& 3A) of Notification 12/2017- Central Tax (Rate) dated 28.06.2017 as amended has been given on pure services & composite supplies procured by Central Government, State Government, Union Territories, or local authorities for performing functions listed in the 11th and 12th schedule of the constitution. As per the above statutory provision it is evident that to avail the benefit of the aforesaid exemption, three conditions should be satisfied. Firstly, pure services (excluding works contract service or other composite supplies involving any goods) should be provided, Secondly, it should be provided to the Central Government, State Government or Union territory or local authority and thirdly it should be an activity in relation to functions entrusted to a Panchayat under article 243G of the Constitution or in relation to functions entrusted to a Municipality under article 243W of the Constitution. From the above discussions the applicant is not satisfying any of the three mandatory conditions specified in the said notification.

Thus, from the above analysis, with regard to the question raised by the applicant, it can be concluded that the provision of services by the applicant to CGHB in relation to maintenance of various colonies of CGHB / provision of security guards etc. do not qualify for be benefit of Nil rate of GST as provided under Sr. no. 3/ (3A) to Notification No. 12/2017- Central Tax (Rate) New Delhi, dated 28th June, 2017 as amended.

Held that— The services provided by the applicant in relation to maintenance of various colonies developed by Chhattisgarh Housing Board (CGHB) and not handed over to the local authority by CGHB, is found not eligible for the benefit of Nil rate of GST provided under Sr. no. 3/3A of exemption Notification no. 12/2017-Central Tax (Rate) dated 28.6.2017 as amended by Notification no. 16/2021 -Central Tax (Rate)New Delhi, 18th November, 2021, effective from 1st of January 2022.