The Gujarat Authority for Advance Rulings (AAR) in the case of Ajit Babubhai Jariwala vide Order dated 26.04.2023, held that held that the “Architectural Consultancy Service” provided to Surat Municipal Corporation (SMC) for the construction of SMIMER Hospital and College Campus is exempt from GST.

In this case, the applicant is engaged in providing a wide range of professional consulting services in respect of architecture, engineering (MEPF), planning, urban design, landscape, sustainability, research and art, building design, interior design, surveying, environmental sciences, project management, and project economics.

The applicant was granted a work order to provide architectural consulting services to SMC regarding the project, namely SMIMER Hospital & College Campus, and to prepare architectural and working drawings as required for the construction of the project.

The applicant sought an advance ruling on the issue of whether the “Architectural Consultancy Service” provided by the applicant to Surat Municipal Corporation for the construction of SMIMER Hospital & College Campus is exempt from GST.

The Gujarat AAR has observed that the pure services (excluding works contract services or other composite supplies involving the supply of any goods) provided to the local authority by way of any activity in relation to a function entrusted to a municipality under Article 243 W of the Constitution 

The AAR held that SMC is of the view that the project to build the SMIMER Hospital and College, being covered under the l2th schedule of Article 243W of the Constitution of India, would be exempted in terms of entry no. 3 of notification No. l2/2017-CT (Rate).