Advance Ruling— The present appeal has been filed by the appellant against the Advance Ruling order.

The appellant has raised the following question for advance ruling in the application for Advance Ruling filed by it.

“Whether various activities carried out by the appellant to the plot holders in terms of provisions of GIDC Act, 1962 and charges collected for the same as may be notified from time to time amounts to supply under Section 7 of the CGST Act, 2017?”

The Gujarat Authority for Advance Ruling observed that the activity of appellant are covered under clause (i) of Section 2(17) which reads as “any activity or transaction undertaken by Central Government, a State Government or any local authority in which they are engaged as public authorities”, read with sub-sections (1) and 1(A) of Section 7 of CGST Act, 2017 would amount to supply. The GAAR also observed that the appellant is not eligible for exemption mentioned at Entry no.04 of Notification No. 12/2017Central Tax (Rate) dated 28.06.2017 (as amended) as the activities carried out by the appellant are not in relation to function entrusted to the municipalities under Article 243W of the Constitution of India.

 Aggrieved by the aforesaid advance ruling, the appellant has filed the present appeal.

This authority find that the appellant does not fall under the category of ‘State Government’ and also their functions are not covered under Twelfth Schedule of Article 243W of the Constitution. They are therefore not eligible for exemption benefit under Notification No.14/2017-Central Tax (Rate) dated 28.06.2017.

The appellant in their appeal submitted that if the ruling pronounced by GAAR is upheld, then in terms of Sr.No. 5 of Notification No. 13/2017 – Central Tax (Rate) dated 28.06.2017, the applicable GST would be payable by the recipient under RCM, we are of the view that when the appeal is filed against ruling pronounced by GAAR, the appellate authority cannot go beyond the issue of the appellant on which the ruling is pronounced by Advance Ruling Authority and therefore cannot consider the merits of the point raised by the appellant.

Held that— This authority uphold the Advance Ruling of the Gujarat Authority for Advance Ruling, with modification in their findings to the effect that the appellant does not fall under the category of ‘State Government’ but is covered under the category ‘Government Entity’.