Page 129 - GSTL_20th August 2020_Vol 39_Part 3

2020 ] IN RE : SRI SATYA SAI WATER SUPPLY PROJECT BOARD 343
The Twelfth Schedule contains a list of matters on which are the responsibility of
the Municipalities or the Committees, in respect of which power and authority
can be exercised. Entry 5 in the Twelfth Schedule rends as under :
5. Water supply for domestic, industrial and, commercial purposes.
The Applicant opines that it qualifies to be a ‘Governmental Authority’, and the
services provided to it by contractors are exempt from tax as -
(i) it is set up by the Government of Andhra Pradesh under G.O. Ms.
No. 344, dated 16-9-1997, (ii) 7 of the 9 members on the Board of Appli-
cant are the officers/employees of the Government of Andhra Pradesh,
which effectively gives a participation of more than 90 per cent. in the
Applicant, (iii) the Applicant was set up by the Panchayat Raj & Rural
Development Authority which performs the functions of a municipality,
and (iv) the Applicant is undertaking the functions of ‘water supply for
domestic purposes’ which qualifies as a function of a Municipality under
Entry 5 to Twelfth Schedule, read with Article 243W of the Constitution.
6. Record of personal hearing :
Sri Kailash Nath P.S.S., Advocate, the authorized representative of the
applicant appeared for Personal Hearing on 11-11-2019 and he reiterated the
submission already made in the application.
7. Discussion and findings :
We have examined the issues raised in the application. The taxability,
classification of the services, applicable rate of tax, eligibility of exemption etc.,
for the Goods and Services supplied or to be supplied, as governed under the
provisions of respective GST Acts are examined.
Regarding the first question, whether the applicant qualifies for “Gov-
ernmental authority” is examined under Section 2(16) of the IGST Act, or as de-
fined vide Notification No. 31/2017-Central Tax (Rate), dated 13-10-2017, which
reads as under;
“Explanation - For the purposes of this clause, the expression “Governmen-
tal 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 panchayat under article 243G or to a
municipality under article 243W of the Constitution.”
Now we examine whether the applicant is qualified by the above conditionali-
ties.
(1) Whether the applicant is set up by an Act of Parliament or a State
Legislature?
The applicant does not fall under this category
(2) Whether it is established by any Government?
The applicant is constituted by the Government i.e., the State of
Andhra Pradesh under G.O. Ms No. 344, dated 16-9-1997. Hence is
qualified by this condition.
Whether the applicant possesses 90% or more participation by the Government
by way of equity or control?

GST LAW TIMES  20th August 2020  129