Page 108 - GSTL_27th August 2020_Vol 39_Part 4

434 GST LAW TIMES [ Vol. 39
7.4.1 For claiming exemption under the Entry No. 3 of Notification No.
12/2017-C.T. (R) followings are the key conditions to be satisfied :-
(a) Pure Service.
(b) Exclusion of works contract and composite supply.
(c) Provided to the Central Government, State Government or Union
territory or local authority or a Governmental authority or a Gov-
ernment Entity.
(d) Any activity 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.
7.4.2 The Contracts are awarded to the applicant by various govern-
ment departments, local authority or Government Entities and Governmental
Agencies for impact evaluation, research works and study for various govern-
ment departments on the matter of good governance and policy analysis is a Pure
Service Contract.
7.4.3 Further the services provided by the applicant to other govern-
ment departments, local authority or Government Entities and Governmental
Agencies are not covered in exclusion clause pertaining to ‘works contract service’
or ‘composite supplies involving supply of any goods’.
7.4.4 The applicant has submitted the list of total 63 projects being exe-
cuted along with the name of the government department, local authority or
Government Entities and Governmental Agencies for whom such project is being
under taken. It is evident from the above said list that the applicant is providing
services to government departments, Local Authorities or Government Entities
and Governmental Agencies only.
7.4.5 Another condition to be satisfied is the activity must 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 hence to understand it better the Articles 243G & 243W are being
reproduced as follows :-
Article 243G in The Constitution of India
243G. Powers, authority and responsibilities of Panchayats. - Subject to
the provisions of this Constitution the Legislature of a State may, by law,
endow the Panchayats with such powers and authority and may be neces-
sary to enable them to function as institutions of self-government and such
law may contain provisions for the devolution of powers and responsibili-
ties upon Panchayats, at the appropriate level, subject to such conditions as
may be specified therein, with respect to -
(a) the preparation of plans for economic development and social
justice;
(b) the implementation of schemes for economic development
and social justice as may be entrusted to them including those
in relation to the matters listed in the Eleventh Schedule.
Article 243W in the Constitution of India
243W. Powers, authority and responsibilities of Municipalities, etc. -
Subject to the provisions of this Constitution, the Legislature of a State may,
by law, endow -
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