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IMPORTANT CASE LAWS
Goods and Services Tax
(a) The Appellant is engaged in providing services of renting of
immovable property. The Appellant along with five co-owners hold
proportionate share in property and such property is let out to
Social Welfare department, Nashik Division of Maharashtra
Government (Social Welfare Department) for residential
accommodation of underprivileged girls.
The Applicant sought advance ruling as to whether (i) services
provided to Social Welfare Department for residential accommodation
of underprivileged girls is exempt from payment of Tax? (ii) Tax
Deduction at Source (TDS) provisions specified under GST laws would
The Authority of Advance Ruling (the AAR) held that the services
provided by the Appellant to Social Welfare Department is not
exempted from payment of GST and TDS provisions under GST shall be
applicable in instant case. Being aggrieved by the order of the
AAR, the Appellant filed appeal before Appellate Authority of
Advance Ruling (the Appellate AAR).
The Appellate AAR held that Social Welfare Department is
department of Maharashtra state government and further, services
provided by the Appellant to Social Welfare Department in relation
to residential accommodation of girls/women belonging to backward
class/scheduled tribes shall fall under ambit of
responsibilities/functions entrusted to panchayats and
municipalities. Therefore, it can be concluded that renting of
immovable property provided by the Appellant to Social Welfare
Department shall be construed as an activity in relation to
function entrusted to a Panchayat under Article 243G of the
Constitution or in relation to function entrusted to a Municipality
under Article 243W thereof. Therefore, the Appellant is eligible
for exemption from Tax in terms of entry No. 3 of Notification No.
12/2017-CT(R) dated June 28, 2017. Further, it has been held that
TDS provisions under GST laws shall not be applicable as services
provided by the Appellant to Social Welfare Department is exempted
from levy of GST.
Takeaway: Services provided to government department in relation
to residential accommodation of unprivileged girls is exempted from
payment of GST
[M/s Shital Tukaram Borade, Order No.
MAH/AAAR/AM-RM/05/2022-23 dated April 1, 2022 (Appellate AAR,
(b) The Applicant is engaged in business of providing technical
consultancy services in marine, nuclear, oil and gas sector.
Vedanta Limited (Vedanta) was awarded exploration licenses for
blocks as part of Government of India’s Open Acreage Licensing
Policy (OALP) in 2018. Subsequently, Vedanta identified contractors
for execution the project across entire spectrum and appointed the
Applicant for planning, monitoring and tracking project progress
and validate execution contractor deliverables.
Accordingly, the Applicant was required to manage the projects
right from detail design to commissioning and also required to
review, monitor, manage and control all aspects of execution of the
The Applicant sought advance ruling as to whether GST@12% is
payable on services provided in relation to project management
consultancy services provided by the Applicant to Vedanta under
heading 9983 to scheme of classification of services in terms of
Serial No. 21(ia) of Notification No. 11/2017-CT (R) dated June 28,
2017 (Notification No. 11/2017) which provides for other
professional, technical and business services relating to
exploration, mining or drilling of petroleum crude or natural gas
The AAR held that the services provided by the Applicant cannot
be considered as either geological/geophysical consulting services
or mineral exploration/evaluation services and thus, not covered
under Serial No. 21(ia) of Notification No. 11/2017. Further, it
has been held that services provided by the Applicant shall be
covered under Serial No. 21(ii) of Notification No. 11/2017 which
provides for professional technical and business services other
than exploration, mining or drilling of petroleum crude or natural
gas or both and subject to GST@18%.
Takeaway: GST @18% is applicable on supply of
project management consultancy services
[M/s Lloyds Register Consulting Energy Private Limited,
GST-ARA-04/2020-21/B-37 dated March 31, 2022 (AAR,
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