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The services by way of Independent Consultancy Services provided or to be provided by the Applicant to Public Works Department, Gurgaon as per Request for Proposal (RFP) at for Design, Engineering, Finance, Construction, Operation and Maintenance of Gurgaon- Faridabad and Ballabhgarh- Sohna Roads on BOT basis are not an activity in relation to function entrusted to Panchayat or Municipality under Article 243G or Article 243W respectively, of the Constitution of India and not exempted from levy of tax under GST.

Authority for Advance Ruling — Consultancy Services provided to Public Works Department, in respect of Roads – The applicant is foreign company engaged in providing independent engineering consultancy services which included preparation of detailed project report, city development plans, for projects in different parts of the country for construction of Roads and Bridges, Solid Waste Management, Water Supply and Sanitation, Urban Development, Buildings. The applicant sought an advance ruling as to whether the services by way of Independent Consultancy Services provided or to be provided by the Applicant to Public Works Department, for design, Engineering, Finance, Construction, Operation and Maintenance of Roads on BOT basis are activity in relation to function entrusted to Panchayat or Municipality under Article 243G or Article 243W respectively, of the Constitution of India; whether the services by way of Independent Consultancy Services provided or to be provided by the Applicant to Public Works Department, are Pure Services qualifying for exemption from levy of tax, as notified in serial number 3 of Notification No. 12 of 2017- Central Tax (Rate) dated 28.06.2017. The authority observed that the engineering services offered/ provided by the applicant to the PWD, a department of the State Government, are with respect to roads, which are beyond the territorial limits of a Panchayat or Municipality. Held that:- The Hon’ble Authority ruled that the applicant providing services by way of Independent Consultancy Services to Public Works Department, on Roads on BOT basis are not an activity in relation to function entrusted to Panchayat or Municipality under Article 243G or Article 243W respectively, of the Constitution of India. The services offered/ provided by the applicant are pure services within the definition of 2 (zfp) but are not exempted from levy of tax under CGST/ HGST Act. The applicant is within its right and legally bound to charge tax under the Act, 2017.
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