Page 122 - GSTL_16 April 2020_Vol 35_Part 3

336 GST LAW TIMES [ Vol. 35
opinion from a Chartered Accounting Firm Sanjiv Shah & Associ-
ates. Furthermore, the alternative bidder namely M/s. Krystal Inte-
grated Services Private Limited had given their quote for contract
price exclusive of GST based on the above Government notification
stating that the services rendered are fully exempt under Notifica-
tion No. 12/2017 read along with amendment dated 25-1-2018 that
the services provided to Central Government, State Government or
Local Authority or a Governmental Authority by way of activity in
relation to any function entrusted to a Panchayat under Article
243G of the Constitution or in relation to any function entrusted to
Municipality under Article 243W.
 M/s. Krystal Integrated Services Private Limited in their bid had
quoted that as per Serial No. 3 of the Notification No. 12/2017-C.T.
(Rate), dated 28-6-2017, GST is exempted for Pure services (exclud-
ing works contract service or other composite supplies involving
supply of any goods) provided to Central Government, State Gov-
ernment or Union Territory or Local Authority or a Governmental
Authority or a Government entity by way of any activity in relation
to any function entrusted to a Panchayat under Article 243G of the
Constitution or in relation to any function entrusted to a Municipal-
ity under Article 243W of the Constitution.
 Further as per Serial Number (3A) of the Notification No. 12/2017-
C.T. (Rate), dated 28-6-2017 GST is exempted for Composite supply
of goods and services in which the value of supply of goods consti-
tutes not more than 25% of the value of the said composite supply
provided to Central Government, State Government or Union Terri-
tory or Local Authority or a Governmental Authority or a Govern-
ment entity by way of any activity in relation to any function en-
trusted to a Panchayat under Article 243G of the Constitution or in
relation to any function entrusted to a Municipality under Article
243W of the Constitution.
 Further DME is of the opinion that the services provided to DME,
Tamil Nadu Medical Services Corporation limited are nothing but
performing functions entrusted to a panchayat under Article 243G
of the Constitution or functions entrusted to the Municipality under
Article 243W of the Constitutions based on the following reasons :
(1) One of the functions listed in Twelfth Schedule under Article
243W of the Constitution is “Public Health Sanitation, con-
servancy and solid waste management”.
(2) Some of the functions listed in the Eleventh Schedule under
Article 243G of the Constitution are “Health and sanitation,
including Hospitals, Primary Health centres and dispensa-
ries”
 DME view on the above said points is based on Section 39 of the
Tamil Nadu District Municipalities Act, 1920 wherein they have re-
lied on the objects of Expenditure connected with public health stat-
ing that expenditure towards public health includes “(a) the con-
struction and maintenance of hospitals and dispensaries and tem-
porary places of reception within the municipality or without the

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