Page 76 - GSTL_13th August 2020_Vol 39_Part 2

162 GST LAW TIMES [ Vol. 39
 They are rendering Pure services;
 To the Central Government, State Government or Union territory or
local authority or a Governmental authority; and
 Such services should be in relation to any function entrusted 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.
(I) Interpretation of ‘Pure Services’
(1.1) The applicant submits that the services provided by them
may be termed as ‘Pure Services’, as they fulfil the following
conditions :
(i) It excludes works contract service
(ii) It excludes other composite supplies involving sup-
ply of any goods
(iii) It is supply of services without involving any supply
of goods
(1.2) The word ‘Pure Services’ referred in notification has nowhere
been defined in the Act, Rules or notification. The Notifica-
tion also does not specifically name the services which are el-
igible for exemption and which are excluded. However,
CBEC vide FAQs on Government Services, has clarified the
scope of Pure Services as under :
Question 25 : What is the scope of ‘pure services’ mentioned in
the exemption notification No. 12/2017-Central Tax (Rate),
dated 28-6-2017?
Answer : In the context of the language used in the notifica-
tion, supply of services without involving any supply of goods
would be treated as supply of pure services. For example,
supply of manpower for Cleanliness of roads, public places,
architect services, Consulting engineer services, advisory ser-
vices, and like services provided by business entities not in-
volving any supply of goods would be treated as supply of
pure services. On the other hand, let us take the example of a
governmental authority awarding the work of maintenance of
street lights in a Municipal area to an agency which involves
apart from maintenance, replacement of defunct lights and
other spares. In this case, the scope of the service involves
maintenance work and supply of goods, which falls under the
works contract services. The exemption is provided to services
which involves only supply of services and not for works con-
tract services.
(1.3) The term ‘Works Contract’ has been defined in Section 2(119)
of the CGST Act, 2017 as
“works contract” means a contract for building, construction,
fabrication, completion, erection, installation, fitting out, im-
provement, modification, repair, maintenance, renovation, al-
teration or commissioning of any immovable property where-
in transfer of property in goods (whether as goods or in some
other form) is involved in the execution of such contract.”
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