Classification of service— In the instant case, the applicant has filed an application seeking advance ruling regarding. GST exemption on the services of survey and preparation of detailed project report (DPR) for water supply schemes for Panchayats/Municipalities under Jal Jeevan Mission under Notification Number 12/2017-Central Tax (Rate) New Delhi, dated 28th June, 2017 and subsequent amendments (SL. Na 3: Pure Services) and applicability of 2% MS deduction on the payments made with regard to above services.

The applicant has informed that they are engaged by Public Health Engineering Department (PHED), Chhattisgarh for preparation of detailed project report for various Gram Panchayats in the state of Chhattisgarh under Jal Jeevan Mission. 

Held that— i. The services of survey and preparation of detailed project report (DPR) for water supply schemes for Panchayats/Municipalities under Jal Jeevan Mission through Public Health Engineering department Government of Chhattisgarh provided by the applicant, M/s Aarav consultancy services pvt. ltd. Raipur are eligible for exemption from GST as provided under Sr. 3 of Notification Number 12/2017-Central Tax (Rate) New Delhi, dated 28lb June,2017 as amended, being pure services as per the definition and the services rendered thereby being listed in article 243G of Constitution as functions pertaining to Panchayat.

ii. No deduction of TDS is warranted in respect of payment received by M/s Aarav consultancy services pvt. ltd., Raipur, the applicant against above services rendered by them which are exempted as per principal notification No.12/2017-Central Tax (Rate) dated 28th June, 2017 as amended.