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The Project Development Service (i.e. Detailed Project Report Service) and Project Management Consultancy services ('PMCS') provided by the applicant to recipient under the Contract for SUDA; and the Project Management Consultancy services ('PMC') under the Contract for PMAY would not qualify as an activity in relation to function entrusted to Panchayat or Municipality under Article 243G or Article 243W respectively, of the Constitution of India.

Classification of service— In the instant case, applicant has sought advance ruling as follows : - i. Whether the Project Development Service (i.e. Detailed Project Report Service) and Project Management Consultancy services ('PMCS') provided by the applicant to recipient under the Contract for SUDA; and the Project Management Consultancy services ('PMC') under the Contract for PMAY would qualify as an activity in relation to function entrusted to Panchayat or Municipality under Article 243G or Article 243W respectively, of the Constitution of India? ii. If answer to question i is in affirmative, would such services provided by the applicant qualify as “Pure services (excluding works contract service or other composite supplies involving supply of any goods)” as provided in serial number 3 of Notification No. 12/2017- Central Tax (Rate) dated 28 June, 2017, as amended (S. No. 3A) by Notification No. 2/2018- Central Tax (Rate) dated 25 January, 2018 issued under Central Goods and Services Tax Act, 2017 ('CGST') and corresponding Notifications No. - KA.N.I.-2-843/X1-9 (47) / 17-U.P. Act-1 - 2017 - Order - (10) - 2017 Lucknow: Dated June 30, 2017 issued under Uttar Pradesh Goods and Services Tax Act, 2017 ('UPGST Act'), where the Project cost includes the cost of service rendered along with reimbursement of cost of procurement of goods for rendering such service, and, thus, be eligible for exemption from levy of CGST and UPGST, respectively. Held that— The SUDA is not covered in the definition of Central Govt., State Govt., Local Authority, Governmental Authority and Govt. Entity as such the exemption contained in Sl.No. 3 & 3A of the Notification No. 12/2017-Central Tax (Rate) are not available to services provided to SUDA.
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