GST
TRT-2025-
AAR Gujarat
Date:-10-08-22
In:-
Issue Favourable to Tax Payer ?:-
Order Date: 10 August 2022
Facts
- The applicant, M/s Varun Travel, is providing service of rent a car to the Clients. The SAC code of the services falls under SAC: 9966. During the third wave of Covid the applicant received work order issued by Ahmedabad Municipal Corporation (AMC) for transporting their health department team.
- The applicant submits that as per Sr. No. 3 of exemption notification No.12/2017 dated 28th June 2017, A11 the services Under chapter 99 Pure services (excluding works contract service or other composite supplies involving supply of any goods) provided to Government, a local authority or a Governmental authority by way of any activity in relation to any function entrusted to a Panchayat under Article 243G of the Constitution or to any function entrusted to a Municipality under Article 243W of the Constitution exempted services from the levy of GST.
- The applicant submits that the service Recipient, Ahmedabad Municipal Corporation claims that the services are purely used for public health purpose as per sr.no. 6 of twelfth schedule of article 243W of the constitution, it is exempted.
Issue
- Whether the service provided to AMC exempt the applicant from GST?
Order
- The authorities observed the tender and work order that Ahmedabad Municipal Corporation is hiring motor vehicles on rent to deal with Corona Pandemic and other accidental and emergency work. These motor vehicles are hired to deal the Corona and other emergency work.
- Further, the motor vehicles supplied on rent have been used for the administrative department team i.e other than public health care work.
- Further, it is observed that the AMC has been deducted TDS Under Section 51 of CGST Act on the payment made to the supplier of service. Therefore, it hold that the applicant supply do not cover under the work listed in the Twelfth Schedule in relation to functions entrusted to a municipality under Article 243W of the Constitution of India is not eligible to the exemption under entry No. 3 of Notification No. l2l20l7 CT (Rate).
- Further, the applicant is receiving services from the Registered Taxable person of same line of the business for rendering the car hiring service to the Ahmedabad Municipal Corporation. In terms of the provision of 17 (5) (b) and entry No. 10 of Notification No.11/2017-CT (Rate) dated 28-6-17 as amended, the applicant is eligible of ITC on receipt of the direct service from the same line of business subject to the conditions specified therein.
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