Andhra Pradesh AAR in the case of M/s. Consulting Engineers Group Limited

Case Covered:

M/s. Consulting Engineers Group Limited

Facts of the case:

M/s. Consulting Engineers Group Limited., (hereinafter referred to as ‘CEG’ or the ‘Applicant’) is a Company registered under the Companies Act, 1956 and registered with Registrar of Companies as “Consulting Engineering Group Limited, vide CIN: U74140RJ1991PLCoo6329 with its Registered Office at 7th Floor, B-11(G), Industrial Area, Malviya Nagar, Jaipur- 302017 and having its Branch office in Andhra Pradesh vide GSTIN 37AAACC7519B1ZZ, having its Principle place of Business at Bye pass Road, Door No. 76_13_ 99/5, Beside Bashyam School, Jojinagar, Vijayawada, Krishna, Andhra Pradesh, 520012.

2. Andhra Pradesh Panchayat Raj Engineering Department (hereinafter referred to as APPRED)set up by an act of Parliament and headed by the commissioner of panchayat Rai, the Department of Panchayat Raj and Rural Development is responsible for planning and execution of programs for rural development. The main function of the Department are as follows:

• Implement schemes for rural development.
• Improve the coverage and quality of infrastructure facilities in rural areas.
• Make provision to provide clean drinking water.
• Execute minor irrigation and poverty alleviation programs

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Complete Guide on PAS-6

Observations:

We have examined the issues raised in the application. The taxability, classification of the services, the applicable rate of tax, eligibility of exemption, etc., for the Goods and Services supplied or to be supplied, as governed under the pror.isions of respective GST Acts are examined.

From the documents on record, we observe that the applicant provides Project Management Consultancy Services to APPRED(Andhra Pradesh Panchayati Raj & Engineering Department) for Andhra Pradesh Rural Road Project (APRRP) which is meant for connectivity of all unconnected habitats of 250+ population in the state of Andhra Pradesh.

The issue at hand is to decide whether the ‘Project Management Consultancy’ services of the applicant provided to the Andhra Pradesh Panchayat Raj Engineering Department for Andhra Pradesh Rural Road Project (APRRP) for Road construction can bc termed as ‘pure services’ as referred in sl. No. 3 – (chapter 99) of Notification No. 12/2017 Central Tax (Rate) Dated 28/06/2077 and accordingly eligible for exemption.

Ruling:

(Under Section 98 of Central Goods and Services Tax Act, 2017 and the Andhra Pradesh Goods and Services Tax Act,2017)

Question: whether the ‘Project Management consultancy’ sen ices provided to Andhra Pradesh Panchayat Raj Engineering Department for Andhra Pradesh Rural Road Project (APRRP) for Road construction can be termed as ‘pure services’ as referred in Sl. No. 3 – (chapter 99) of Table mentioned in Notification No. 12/2017 – Central Tax_(Rate) Dated 28/06/2017 and accordingly eligible for exemption from Central Goods and Services Tax and Sl. No. 3 – (Chapter 99) of Table mentioned in G.O.Ms.No.588 -(Andhra Pradesh) State Tax (Rate) Dated12/12/2017 and accordingly eligible for exemption from Andhra Pradesh Goods and Service Tax.

Answer: Affirmative.

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