The Telangana Authority of Advance Ruling (AAR) specified that the GST is liable to pay on e-procurement services furnished to the Government.
The petitioner, Telangana State Technology Services Limited (TSTSL) Telangana State Public Sector Undertaking and TSTSL is a Service Agency to the Telangana Government and its Departments relating to Information Technology as well as its associated services.
The petitioner seeks the advance ruling upon the concern of whether the e-Procurement transaction fee obtained upon ITE&C council of Telangana State Government to the online tenders that end in as a supply of goods or services or dual in the meaning of supply as stated. The Tax liability appears on the e-procurement transaction fee received as per the State Government Department, that is, the ITE&C department. And also to ensure that the services come under the state government Entry No.6 of exemption of Notification No. 12/2017- Central Tax (Rate) Dated 28th June 2017.
It is the choice of the petitioner that these services furnished through him come beneath Entry 6 of Notification No. 12/2017 on 28/6/2017 and hence get privilege from the taxes beneath GST.
AAR reveals that the services through the central government, State Government, Union territory, or local authority does not include the services via the department of Posts through the method of speed post, express parcel post, life insurance, and agency services given to an individual other than the Central Government, State Government, Union territory; Services within the aircraft or a vessel, inside or outside the limits of a port or an airport; Transport of goods or passengers; or other services, excluding the services comprised beneath the entries (a) to (c) above, given to the trade organizations.
Under the provision of additional Commissioner (Central Tax), B. Raghu Kiran, and Additional Commissioner (State Tax), S.V. Kasi Visweswar Rao retained that the petitioner is giving the services to the government. Thus the services furnished through the petitioner to the government shall not get privileged beneath the notice given. Moreover, the services that the petitioner has been furnished upon the grounds of the government to the trade organizations shall come under the exception to the mentioned entity hence these services shall not get exempted.
