Page 105 - GSTL_13th August 2020_Vol 39_Part 2

2020 ] IN RE : ZIGMA GLOBAL ENVIRON SOLUTIONS PVT. LTD. 191
(ii)(a) Whether it is established by any Government?
Tirupati Smart City Corporation Limited (TSCCL) is a Special Pur-
pose Vehicle (SPV) created by the Government of Andhra Pradesh
vide G.O. MS. No. 258, Municipal Administration & Urban Devel-
opment (UBS) Department dated 21-10-2016
(b) Whether the applicant possesses 90% or more participation by the
Government by way of equity or control?
As far as the ‘equity’ part is concerned, Tirupati Smart City Corpo-
ration Limited (TSCCL) is a limited company incorporated under
the Companies Act, 2013 in which the Andhra Pradesh State Gov-
ernment and the Tirupati Municipal Corporation are the promoters
having 50:50 equity share holding, which substantiates more than
90% of participation of the Government. With reference to the ‘con-
trol’ wielded by the share holders, all of the share holders are Gov-
ernmental Authorities nominated on the body of the TSCCL as
mentioned hereunder;
(1) Governor of Andhra Pradesh represented by Principal Secre-
tary, MA & UD GoAP.
(2) Commissioner and Director of Municipal Administration,
GoAP, Hyderabad.
(3) Engineer-in-Chief, Public Health Department, GoAP.
(4) Director of Town and Country Planning, GoAP.
(5) Municipal Corporation of Tirupati represented by its Com-
missioner.
(6) Additional Commissioner, Tirupati Municipal Corporation
(7) Examiner of Accounts, Tirupati Municipal Corporation and
(8) Superintending Engineer, Tirupati Municipal Corporation.
The composition of the body leaves no further doubts regarding the
complete control wielded by the Government.
(c) Now we examine whether the functions carried out by TSCCL are
meant to carry out any function entrusted to a panchayat under Ar-
ticle 243G or to a municipality under Article 243W of the Constitu-
tion.”
The relevant function under which the services of the applicant as extended to
the TSCCL fall under the category of the functions entrusted to a municipality
under the Twelfth Schedule to Article 243W of the Constitution is as under :
(f) Public health, sanitation conservancy and solid waste management.
Thus, the final condition is also satisfied.
8. Hence, services provided by the Applicant are exempted under Sl.
No. 3 of Notification No. 12/2017, dated 28-7-2017 as amended further by Notifi-
cation No. 32/2017-Central Tax (Rate), dated 13-10-2017.
RULING
(1) Question : Classification of the services provided by the Applicant.

GST LAW TIMES  13th August 2020  105