Page 154 - GSTL_23rd April 2020_Vol 35_Part 4

480 GST LAW TIMES [ Vol. 35
applicant, but intended to be utilised for development works, in the interest of
villages.
5.1 In view of the above, the applicant sought advance ruling on the
following questions :
(1) Whether the amount collected towards Local Area Development
Fund, which is kept separately and used for development of the af-
fected area as per the guidelines of MNRE, can be treated as not a
supply as per the provisions of CGST/KGST/IGST Act, 2017 and
not levied to tax?
(2) Without prejudice to the above, if it is treated as Supply, what will
be the HSN/SAC code under which it would be levied to Tax?
(3) Without prejudice to the above, if it is treated as Supply, will it be
exempt as per Sl. No. 3 or 3A of Notfn. 12/2017-C.T. (R) as the activ-
ities to be carried out are covered under Article 243G and/or Article
243W of the Constitution of India?
5.2 Applicant’s interpretation of Law :
There is no supply made by the applicant to the SPDs with reference to
the LAD Fund; no benefit is derived by the Applicant in the said transaction; the
amount is collected as per the guidelines of MNRE & is used for only village de-
velopment works; the said amount is not against any supply of goods/services
made by the applicant to the SPDs.
The transaction does not get covered by the definition of Supply, in
terms of Section 7 of the CGST Act, 2017; the activity is not in the course or fur-
therance of business. Therefore the activity can’t be subjected to GST as it is not
in the nature of supply.
Personal hearing proceedings held on 21-11-2019 :
6.1 Sri. Ganesh S., Advocate and authorised representative of the appli-
cant appeared for personal hearing proceedings before this authority and re-
quested to add the following additional question to the questions in the applica-
tion for advance ruling.
4. Without prejudice to the above, if the amount towards Local Area
Development collected is either treated as supply or otherwise, will the
payment made at the direction of the committee formed for Local Area
Development be considered as Service rendered by Government to Ap-
plicant and subject to payment of Tax under reverse charge as per Entry
5 of Notification 13/2017-Central Tax (Rate)?
6.2 The authorised representative of the applicant also furnished the
following written submissions :
(a) The applicant is a joint venture company of M/s. Solar Energy Cor-
poration of India Limited (SECI), Government of India and M/s.
Karnataka Renewable Energy Development Limited (KREDL),
Government of Karnataka and hence is a Government Company as
per Section 2(45) of the Companies Act, 2013.
(b) The applicant acts as a Solar Power Park Developer (SPPD) under
the guidelines of Ministry of New and Renewable Energy (MNRE),
and involved in creation of infrastructure like internal evacuation
scheme, Layout Roads, Street Lights, water etc., for evacuating

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