Advance Ruling- Rate of Tax(Services)- Queries on which Advance Ruling has been sought:-

1. Engagement of system integrator for implementation water revenue management system, creation and maintenance of database, spot billing/meter reading and bill distribution (MRBD) services for water supply & sewerage connections under the jurisdiction of Municipal Corporation, Gurugram is covered under which SAC of the GST Act, 2017?

2. Determination of the liability to pay tax on the above services means the rate of output tax liability on above mentioned services?

3. Is this service exempt under clause 3 of notification 12/2017 dated 28.06.2017?

Authority for Advance Ruling, Haryana held that:- The nature of services rendered by the applicant is like a software tool operated by its staff. The said services include creation and maintenance of data base of the consumers and the web based spot billing and collection of payments on behalf of Municipal Corporation. These services cannot be termed as pure services as defined under the provisions of the GST Act, 2017. So, these are not covered in the clause 5 of 12th Schedule i.e. water supply for domestic, industrial and commercial purposes. This function of water supply has been entrusted to a Municipality under Article 243W of the Constitution of India and these services provided by the applicant to the MCG are not in relation to the water distribution system per se.Services provided by the applicant are covered under SAC Code 998633 and taxable @ 18%. This Service is not exempt under clause 3 of notification 12/2017 dated 28.06.2017.