The Rajasthan Authority for Advance Ruling in the case of M/S PDCOR Limited (RAJ/AAR/2018-19/13) 2018-TIOL-163-AAR-GST dealt with a question as to whether Jaipur Development Authority (JDA) is a Local Authority or Governmental Authority or Governmental Entity and whether the Project Management Consulting Services (PMCs) provided by the applicant, PDCOR to JDA are exempt from GST in terms of Notification No. 12/ 2017-Central Tax (Rate) dated 28.06.2017.
In the instance case, the applicant is engaged in providing PMC services to JDA in relation to rejuvenation of Amanishah Nallah (Dravyavati River), Jaipur which are listed in Article 243G along with Eleventh Schedule and Article 243W along with Twelfth Schedule of the Constitution. Jaipur Development Authority is set up by an act of State Legislatures viz. the Jaipur Development Authority Act (Act. 25 of 1982) to carry out the functions of planning, coordination and supervision of the development of the Jaipur Region and of executing plans, projects and schemes for such development enacted by the Rajasthan State Legislature.
Further, pure services (excluding works contract service or other composite supplies involving supply of any goods) provided to the Central Government, State Government or Union territory or local authority or a Governmental authority or a Government Entity by way of 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 are exempt under GST.
The AAR held that Jaipur Development Authority being set up by an Act of State Legislature, to carry out the functions entrusted under Article 243G of the Constitution, is a Governmental Authority in terms of Notification No. 32/ 2017-Central Tax (Rate) dated 13.10.2017. It further held that the PMC services provided by the applicant to JDA are pure services and thus exempt from GST in terms of S.No. 3 of Notification No. 12/ 2017-Central Tax (Rate) dated 28.06.2017.
