The applicant M/s. National institute of design, will qualify as ‘Governmental Authority’ if it also fulfils the condition namely ‘ninety percent or more participation of Government by way of equity or control
Levy of GST- The three issues to be decided in the instant case are as follows-
(i) Whether NID would qualify as ‘Governmental Authority’ as defined under the Integrated Goods and Services Tax Act, 2017.
(ii) Whether NID is liable to pay GST on procurement of (a)security services received from any person other than body corporate as per Notification No.13/2017-Central Tax Rate (b)access to e-books/e-database from service provider located outside India as import of service
(iii) Whether NID is required to be registered as a tax deductor under GST as per the provision of Section 24 of the CGST Act.
Held that-
(i) Since the applicant M/s. National institute of design, Ahmedabad has been formed by an Act of Parliament to carry out the function entrusted to a municipality under Article 243W of the Constitution and to a Panchayat under Article 243G of the Constitution, the applicant will qualify as ‘Governmental Authority’ if it also fulfils the condition namely ‘ninety percent or more participation of Government by way of equity or control.’
(ii) In view of non-submission of copies of agreement or contract with regard to the services received/to be received by the applicant, it would not be possible for us to give a decision in the matter
(iii) Since it has been established from the discussions hereinabove, that NID has been formed by an Act of Parliament, the applicant will have to register themselves as a tax deductor under the provisions of Section 24 of the CGST Act, 2017 read with Section 51 of the Act, if they fulfil the condition of ‘fifty-one percent, or more participation of Government by way of equity or control, to carry out any function’.
The applicant M/s. National institute of design, will qualify as ‘Governmental Authority’ if it also fulfils the condition namely ‘ninety percent or more participation of Government by way of equity or control
Levy of GST- The three issues to be decided in the instant case are as follows-
(i) Whether NID would qualify as ‘Governmental Authority’ as defined under the Integrated Goods and Services Tax Act, 2017.
(ii) Whether NID is liable to pay GST on procurement of (a)security services received from any person other than body corporate as per Notification No.13/2017-Central Tax Rate (b)access to e-books/e-database from service provider located outside India as import of service
(iii) Whether NID is required to be registered as a tax deductor under GST as per the provision of Section 24 of the CGST Act.
Held that-
(i) Since the applicant M/s. National institute of design, Ahmedabad has been formed by an Act of Parliament to carry out the function entrusted to a municipality under Article 243W of the Constitution and to a Panchayat under Article 243G of the Constitution, the applicant will qualify as ‘Governmental Authority’ if it also fulfils the condition namely ‘ninety percent or more participation of Government by way of equity or control.’
(ii) In view of non-submission of copies of agreement or contract with regard to the services received/to be received by the applicant, it would not be possible for us to give a decision in the matter
(iii) Since it has been established from the discussions hereinabove, that NID has been formed by an Act of Parliament, the applicant will have to register themselves as a tax deductor under the provisions of Section 24 of the CGST Act, 2017 read with Section 51 of the Act, if they fulfil the condition of ‘fifty-one percent, or more participation of Government by way of equity or control, to carry out any function’.