Page 101 - GSTL_13th August 2020_Vol 39_Part 2

2020 ] IN RE : ZIGMA GLOBAL ENVIRON SOLUTIONS PVT. LTD. 187
Sl. Chapter, Description of Services Rate Con-
No. Section, (Per dition
Heading, cent)
Group
Service
Code
(Tariff)
3 99 Pure services (excluding works contract Nil Nil
service or other composite supplies involv-
ing supply of any goods) provided to the
Central Government, State Government or
Union territory or local authority or a Gov-
ernmental authority by way of any activity
in relation to any function entrusted to a
panchayat under Article 243G of the consti-
tution or in relation to any function entrust-
ed to a Municipality under Article 243W of
the constitution.

From the scope of the services it is understood that the applicant is providing
exclusively services only and don’t supply any goods in whatsoever manner.
With reference to the question whether M/s. Tirupati Smart City Corporation is
a “Governmental Authority as per the definition of Notification No. 12/2017-Central
Tax (Rate), dated 28-6-2017, the following submissions are made :
The “Governmental Authority” has been defined as under, as per Notifi-
cation No. 12/2017-Central Tax (Rate), dated 28-6-2017.
(zf) “governmental authority” has the same meaning as assigned to it in
the Explanation to clause (16) of Section 2 of the Integrated Goods and Ser-
vices Tax Act, 2017 (13 of 2017);
Further explanation to clause (16) of Section 2 of the Integrated Goods and Ser-
vices Tax Act, 2017 (13 of 2017) reads as
(16) “non-taxable online recipient” means any Government, local authori-
ty, governmental authority, an individual or any other person not regis-
tered and receiving online information and database access or retrieval ser-
vices in relation to any purpose other than commerce, industry or any other
business or profession, located in taxable territory.
Explanation. - For the purposes of this clause, the expression “governmental
authority” means an authority or a board or any other body, -
(i) set up by an Act of Parliament or a State Legislature; or
(ii) established by any Government, with ninety per cent, or more
participation by way of equity or control, to carry out any
function entrusted to a municipality under Article 243W of the
Constitution;
The functions entrusted to a municipality under the Twelfth Schedule to Article
243W of the Constitution are as under :
(a) Urban planning including town planning.
(b) Regulation of land-use and construction of buildings.
(c) Planning for economic and social development.
(d) Roads and bridges.
GST LAW TIMES  13th August 2020  101