Page 80 - GSTL_13th August 2020_Vol 39_Part 2

166 GST LAW TIMES [ Vol. 39
for the Goods and Services supplied or to be supplied, as governed under the
provisions of respective GST Acts are examined.
From the documents on record, we observe that the applicant provides
Project Management Consultancy Services to APPRED (Andhra Pradesh Pan-
chayati Raj & Engineering Department) for Andhra Pradesh Rural Road Project
(APRRP) which is meant for connectivity of all unconnected habitats of 250+
population in the State of Andhra Pradesh.
The issue at hand is to decide whether the ‘Project Management Consul-
tancy’ services of the applicant provided to Andhra Pradesh Panchayat Raj Engi-
neering Department for Andhra Pradesh Rural Road Project (APRRP) for Road
Construction can be termed as ‘Pure Services’ as referred in Sl. No. 3 - (Chapter
99) of Notification No. 12/2017-Central Tax (Rate), dated 28-6-2017 and accord-
ingly eligible for exemption.
The services rendered by the applicant include a wide range of services
like, Review & verification of the Project DPRs, Project Management (execution)
and Monitoring, Construction Supervision and Contract Management, including
QAC and ensuring that the ESMPs are properly prepared and implemented.
Now we examine whether the services as provided by the applicant are
exempted under Sl. No. 3 of Notification No. 12/2017, dated 28-7-2017 as
amended.
Sl. No. 3 of the above notification describes pure services (excluding
works contract service or other composite supplies involving supply of any
goods) provided to the Central Government, State Government or Union territo-
ry or local authority or a Governmental authority by way of any activity in rela-
tion to any function entrusted to a Panchayat under Article 243G of the Constitu-
tion or in relation to any function entrusted to a Municipality under Article 243W
of the Constitution.
There are multiple issues that are to be dealt under this entry as men-
tioned hereunder :
(a) Whether the services rendered by the applicant are pure services?
The Services rendered by the applicant as seen from the record, are
devoid of any incorporation of goods in the process of supply and
the agreement copy between the applicant and APPRED reveals the
same, citing the approximate value of the work to be done under
the agreement for a sum of Rs. 17,71,78,000/- (Rupees Seventeen
Crore Seventy One lakh and Seventy Eight thousand only). As per
the scope of work mentioned under Point No. 7 of Exhibit-II, the
Applicant is mainly engaged in providing Consultancy services to
the APPRED through its professionals and Experts in various fields.
The copy of Invoice as produced by the applicant reveal the same
showing a detailed bifurcation of cost which comprises of reim-
bursement of Remuneration of Professionals and Experts employed
for undertaking various tasks assigned to the Applicant in the Con-
tract Agreement. There is no component of supply of goods in any
invoices. Hence, they are classifiable as pure services, excluding the
possibilities of works contract service and other composite supplies
involving supply of any goods.
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