GST ON SERVICES TO MUNICIPAL CORPORATIONS: RAJASTHAN AAR CLARIFIES TAX & TDS APPLICABILITY

GST ON SERVICES TO MUNICIPAL CORPORATIONS: RAJASTHAN AAR CLARIFIES TAX & TDS APPLICABILITY

RAJASTHAN AUTHORITY FOR ADVANCE RULING
GOODS AND SERVICES TAX

Case Title- Municipal Corporation, Pratapgarh

(GST AAR RAJASTHAN)

Advance Ruling No. RAJ/AAR/2018-19/37

Date of Judgment/Order- 14th March 2019

IMPORTANT PARAGRAPHS

QUESTIONS ON WHICH THE ADVANCE RULING IS SOUGHT

1. नगर परिषद द्वारा ठेके में कराए गए सड़क, शौचालय, एवं उद्यानों के सफाई कार्यों से संबंधित प्राप्त सेवाओं पर GST TDS के प्रावधान किस प्रकार लागू होंगे?
2. घर घर कचरा संग्रहण कार्य तथा ठोस अपशिष्ट प्रबंधन कार्य से संबंधित प्राप्त सेवाओं पर GST TDS के प्रावधान किस प्रकार लागू रहेंगे?
3. नगर परिषद की आवश्यकता अनुसार कुशल, अकुशल श्रमिक, वाहन चालक विभिन्न ठेकेदारों द्वारा कराए जाते है इन पर GST TDS के प्रावधान किस प्रकार लागू रहेंगे?
4. नगर परिषद द्वारा विभिन्न पार्कों के रख-रखाव के कार्य संबंधी सेवाओं पर GST TDS के प्रावधान किस प्रकार लागू होंगे?

Para No. 3. PERSONAL HEARING
In the matter personal hearing was granted to the applicant on 01.03.2019 at Room no. 2.29 NCRB, Statue Circle, Jaipur. Shri Pradeep Patidar and Shri Mukesh Mohil (Authorised Representative) of applicant appeared for PH. during the PH, he reiterated the submissions already made in the application. He further requested that the case may be decided at the earliest.

RULING

Applicant being a local authority is engaged in receipt of various kinds of services provided by different contractors on which applicability of GST and GST TDS will be -:
a. Pure Services will attract Nil rate of duty and provisions of GST TDS will not be applicable.
b. In Composite supply of goods and services where supply of goods is not more than 25% of the total value of supply, will attract Nil rate of duty and provisions of GST TDS will not be applicable.
c. In Composite supply of goods and services where supply of goods is more than 25% of the total value of supply, will attracts GST @ 12% (SGST 6% +CGST6%) if the activity fall under purview of Serial No. 3 of Notification 11/2017 (CT-rate) dated 28.06.2017 as amended from time to time and if not, then GST @ 18% (SGST 9% +CGST 9%) will be applicable. Provisions of GST TDS will apply as the activity in this case is taxable.