The applicant is supplying pure services to a Government Entity in relation to any function entrusted to a Panchayat under article 243 G of the Constitution or in relation to any function entrusted to a Municipality under article 243W of the Constitution and therefore, as per the provisions of Entry No. (3) of Notification No. 12/2017-CT(R) the said services supplied by the applicant are exempted from GST.
Levy of GST— The present application has been filed by M/s. Mumbai port trust, the applicant, seeking an advance ruling in respect of the following questions.-
1. Whether in law and in facts and circumstances of the case, the Applicant (“MbPT”) is entitled to exemption from payment of GST in terms of Entry No. 3 of the Notification No. 12/2012-CTR dtd.20-06-2012 on the following considerations payable to it by Mumbai Metropolitan Region Development Authority (“MMRDA “) in terms of Memorandum of Understanding (MOU) entered into between the MbPT and MMRDA.
a. Way Leave fees & Lease rent payable every year as consideration for the grant of lease and way leave permission for the plot of land and water areas required by MMRDA for the MTHL project.
b. Compensation equivalent to the amount of Rs. 24.48 crores in lieu of demolition of 4 existing sheds at STP yard situated on the said plot of land which is licensed to MMRDA for the purpose of the MTHL project and required to be demolished in order to render vacant possession of the said plot of land to MMRDA for the purposes stated in the MOU.
c. Compensation equivalent to the amount of Rs. 64 crores in lieu of decommissioning of Old Pir Pan Jetty / Berth situated on the said plot of land which is licensed to MMRDA for the purpose of the MTHL project.
d. An amount equivalent to 15% of the Security Deposit, received by MbPT from MMRDA under the name of “Way Lease Agreement Charges'' to meet the cost of execution of execution of Way lease agreement & Lease Agreement
e. Refundable Security Deposit to be returned to MMRDA only on termination of the agreement.
f. Refundable Security Deposit of Rs. 20 Crores, to meet the cost of damages during the execution of work, if any, in the future.
Held that— all amounts received by the applicant are in relation to pure services rendered by the applicants to a Government Entity, and will be exempt from payment of GST under Entry No. (3) Of Notification No. 12/2017-C.T(R) dated 28.06.2017. Even the refundable security deposit received by the applicant from MMRDA, as security against possible damages during the execution of works, is in relation to pure services rendered by the applicants to a Government Entity, and will be exempt from payment of GST under Entry No. (3) Of Notification No. 12/2017-CT(R) dated 28.06.2017.
The applicant is supplying pure services to a Government Entity in relation to any function entrusted to a Panchayat under article 243 G of the Constitution or in relation to any function entrusted to a Municipality under article 243W of the Constitution and therefore, as per the provisions of Entry No. (3) of Notification No. 12/2017-CT(R) the said services supplied by the applicant are exempted from GST.
Levy of GST— The present application has been filed by M/s. Mumbai port trust, the applicant, seeking an advance ruling in respect of the following questions.-
1. Whether in law and in facts and circumstances of the case, the Applicant (“MbPT”) is entitled to exemption from payment of GST in terms of Entry No. 3 of the Notification No. 12/2012-CTR dtd.20-06-2012 on the following considerations payable to it by Mumbai Metropolitan Region Development Authority (“MMRDA “) in terms of Memorandum of Understanding (MOU) entered into between the MbPT and MMRDA.
a. Way Leave fees & Lease rent payable every year as consideration for the grant of lease and way leave permission for the plot of land and water areas required by MMRDA for the MTHL project.
b. Compensation equivalent to the amount of Rs. 24.48 crores in lieu of demolition of 4 existing sheds at STP yard situated on the said plot of land which is licensed to MMRDA for the purpose of the MTHL project and required to be demolished in order to render vacant possession of the said plot of land to MMRDA for the purposes stated in the MOU.
c. Compensation equivalent to the amount of Rs. 64 crores in lieu of decommissioning of Old Pir Pan Jetty / Berth situated on the said plot of land which is licensed to MMRDA for the purpose of the MTHL project.
d. An amount equivalent to 15% of the Security Deposit, received by MbPT from MMRDA under the name of “Way Lease Agreement Charges'' to meet the cost of execution of execution of Way lease agreement & Lease Agreement
e. Refundable Security Deposit to be returned to MMRDA only on termination of the agreement.
f. Refundable Security Deposit of Rs. 20 Crores, to meet the cost of damages during the execution of work, if any, in the future.
Held that— all amounts received by the applicant are in relation to pure services rendered by the applicants to a Government Entity, and will be exempt from payment of GST under Entry No. (3) Of Notification No. 12/2017-C.T(R) dated 28.06.2017. Even the refundable security deposit received by the applicant from MMRDA, as security against possible damages during the execution of works, is in relation to pure services rendered by the applicants to a Government Entity, and will be exempt from payment of GST under Entry No. (3) Of Notification No. 12/2017-CT(R) dated 28.06.2017.