Project Management Services provided to Jaipur Development Authority Exempted from GST: AAR [Read Order]

The Authority for Advance Rulings (AAR), Jaipur has held that no tax is payable on providing project management services provided by the applicant joint venture company to Jaipur Development Authority under the Goods and Services Tax (GST).

In the instant case, the applicant, a joint venture company entered into an MoU with the Jaipur Development Authority (JDA), Government of Rajasthan as per which the applicant has to provide ‘Project Management Consulting Services (PMCs) for Rejuvenation of Amanishah Nallah (Dravyavati River), Jaipur, Rajasthan including Area Development’ for a period of 12 months.

Before the AAR, the applicant sought for a clarification on whether the above-said services would attract GST. They also wanted to know whether JDA was a Local Authority or Governmental Authority or Governmental Entity.

The authority held that the Jaipur Development Authority (JDA) is a Governmental Authority.

It was observed that the PMC services provided by applicant to the Jaipur Development Authority in the ‘Project Management Consulting Services (PMCs) for Rejuvenation of Amanishah Nallah (Dravyavati River), Jaipur’ are correctly classified under SAC Code 9983.

“The PMC services provided by the applicant to JDA under ‘Project Management Consulting Services (PMCs) for Rejuvenation of Amanishah Nallah (Dravyavati River), Jaipur awarded to them vides their MOA dated : 1-9-2017 and are covered under Sl. No. 3 of GST under Notification 12/2017 Central Tax (Rate) dated 28-6-2017 issued by the Government of Rajasthan and hence exempt from GST,” the AAR said.