The Gujarat Authority of Advance Ruling (AAR) ruled that GST is applicable on Supply of Temporary live videography with LED & LCD Screen, Live Telecast equipment, Cameras, on hire basis to Central Government.
The applicant, M/s Jayshreeben Rameshchandra Kothari is a Proprietor of M/s Dimple Colour Lab engaged in supply of goods such as Temporary live videography with LED & LCD Screen, Live Telecast equipment, Cameras, etc. on hire basis to Central Government, State Government, Union Territory, Local Authority, Village Panchayat, who undertake activities in relation to any function entrusted under Article-243G of the Constitution.
The Central Government, State Government, Union Territory, Local Authority, Village Panchayat, place orders to them for providing/supplyingTemporary live videography with LED & LCD Screen, Live Telecast equipment, Cameras, etc.. They have enclosed specimen Work Orders viz. Work Order issued by Office of the Executive Engineer, Baroda Electrical Division, R & B Department, Vadodara and Work Order issued by the Collector, Bharuch.
The applicant sought advance ruling on the issue that whether or not, the aforesaid services fall under the scope of clause 5 (f) of the Schedule II to the Central Goods and Service Tax Act, 2017.
It was further asked that whether or not, the Service related to collection of Hire Charges for temporary transfer of right to use goods from “Central Govt., State Govt. or Union Territory or Local Authority or a Government Authority by way of any activity in relation to any Function entrusted to a Panchayat under Article 243-G of the Constitution or in relation to any function entrusted to a Municipality under Article 243-W of the Constitution” are covered and exempted under the scope of Sr. No. 3 of the Notification No.12/2017-Central Tax (Rate) dated June 28, 2017.
The coram consisting of Sanjay Saxena and Mohit Agarwal ruled that the services does not fall under the scope of clause 5 (f) of the Schedule II to the Central Goods and Service Tax Act, 2017.
The AAR further clarified that three conditions required to be satisfied for a service to be covered under subject entry of the exemption notification.
Firstly, it must be pure service not involving any supply of goods;
Secondly, it must be provided to the Central Government or State Government or Union Territory or Local Authority or a Governmental Authority or a Government Entity;
Thirdly, it must be an activity in relation to any function entrusted to a Panchayat under Article 243G of the Constitution; or Municipality under Article 243W of the Constitution.
Therefore, the NAA ruled that the exemption sought by the applicant will depend upon the nature of services provided by them in terms of specific contracts entered by them with respective service recipients.
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