Classification of service— In the instant case, the applicant is providing service of rent a car to the clients. The SAC code of the services falls under SAC: 9966 (Rental services of transport vehicles with operators) (i) Renting of any motor vehicle designed to carry passengers where the cost of fuel is included in the consideration charged from the service recipient.

The applicant submits that it has received work order issued by Ahmedabad Municipal Corporation for transporting their health department team during probable Third wave of Covid-19 or other emergency and important matter related services. The copy of work order has been attached herewith for ready perusal.

The applicant has submitted that as per Sr. No. 3 of exemption notification No.12/2017 dated 28th June 2017, All the services Under chapter 99 Pure services (excluding works contract service or other composite supplies involving supply of any goods) provided to Government, a local authority or a Governmental authority by way of any activity in relation to any function entrusted to a Panchayat under Article 243G of the Constitution or to any function entrusted to a Municipality under Article 243W of the Constitution is exempted services from the levy of GST.

Question on which Advance Ruling sought:

1. Whether the A.C. car hiring services for Covid-19 third wave, for Emergency and for other important matter received by the Local Authority, Ahmedabad Municipal corporation as stated in the work order No.445/1 dated 01-11-21 falls under Sr. No. 6 (Public Health) of Twelfth schedule of Article 243W of the constitution.

2. Whether Services provided to Ahmedabad Municipal Corporation vide their work order No.445/1 dated 01-11-21 falls under exempted category of services as stated in Sr. No. 3 of Notification No.12/2017 (Central Tax Rate) dated 28th June 2017, chapter 99 “Pure services (excluding works contract service or other composite supplies involving supply of any goods) provided to Government, a local authority or a Governmental authority by way of any activity in relation to any function entrusted to a Panchayat under Article 243G of the Constitution or to any function entrusted to a Municipality under Article 243W of the Constitution is exempted services.”

3. What kind of documentary evidences or declarations should be collected other than the work order and tender documents from the service recipient, Ahmedabad Municipal Corporation to ensure that the cars are exclusively used for the public health purpose as stated in Sr. No.6 of Twelfth Schedule of Article 243W of the constitution.

4. Whether service providervarun travels is entitled to claim Input Tax Credit on receipt of the direct services from the same line of business for rendering the Car Hire services to Ahmedabad Municipal Corporation as per work order No.445/1 dated 01-11-21.

5. Whether Direct input services of the same line of business received by the service provider to render the above services as stated in work order No.445/1 dated 01-11-21 issued by Ahmedabad Municipal Corporation is also exempt.

Held that—

1. Service of Renting of Motor Vehicle to the AMC does not fall under Sr.No. 6(Public Health) of Twelfth schedule of Article 243W of the constitution

2. The service of Renting of Motor Vehicle to the AMC does not cover under entry No. 3 of Not. No. 12/2017-CT (R)

3. The question is not maintainable.

4. The applicant is eligible of ITC on receipt of the direct service from the same line of business subject to the conditions specified therein.

5. The question is not maintainable.