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The services rendered by the applicant to the Government of Kerala as executing and operating agency of the integrated water transport project is classifiable as pure services falling under service classification code 998339 and the services are exempted

Liability of GST the applicant has requested advance ruling on the following:

1. Since the Govt. of Kerala is the de jure owner of the assets of the water metro project and the works contracts are performed by contractors with whom agreements are entered into by KMRL on behalf of Govt. of Kerala.

a) Whether KMRL has any liability to pay GST on the funds received from Govt. of Kerala for paying the cost of the water metro project?
b) Whether a GST invoice is to be raised on Govt. of Kerala for transferring the value of assets on a back to back basis after completion of the works?

c) In the above cases, if liable, how will the ITC be claimed against (a)

2. Notwithstanding the above, whether KMRL can be treated as a Governmental Authority as per the IGST Act for the purpose of claiming exemption under item no.4 of Notification No. 12/2017 dated 28-06-2017 since it is a body established by the Government with ninety percent or more participation by way of equity to carry out function entrusted to a municipality under Article 243W of the Constitution?

3. Whether services rendered by KMRL as an executing agency to Govt. of Kerala can be treated as a pure service as per Entry 3 of the Notification no. 12/2017 dtd.28-06-2017?

Held that—
1) The applicant being the agency for executing and operating the integrated water transport project in Kochi is rendering pure services to the Government of Kerala which is falling under the service classification code 998339. Hence, the services provided by the applicant to the Government of Kerala are exempted from payment of goods and services tax by virtue of the entry at Sl No. 3 of Notification No. 12/2017 Central Tax (Rate) dated 28.06.2017.

2) The applicant falls under the definition of “Governmental Authority” under Para 2 (zf) of Notification No. 12/2017 Central Tax (Rate) dated 28.06.2017.

3) The services rendered by the applicant to the Government of Kerala as executing and operating agency of the integrated water transport project is classifiable as pure services falling under service classification code 998339 and the services are exempted from payment of goods and services tax by virtue of the entry at Sl No. 3 of Notification No. 12/2017 Central Tax (Rate) dated 28.06.2017.—Kochi Metro Rail Ltd., In Re… [2020] 24 TAXLOK.COM 061 (AAR-Kerala)