M/s. The Maharashtra AAR pronounced the decision over: As per Notification No. 11/2017, The Nisarga Consultancy shall charge 18% GST if technical consultancy services provided to Maharashtra Jeevan Pradhikaran (MJP) are subjected to an invoice after 1st January 2022. An applicant that is a consulting company undertaken for water and sewage management submitted an application for clarification with regard to the taxation on their services. Till January 1, 2022, services provided by the Jal Jeevan Mission (JJM) were exempted from tax as per Notification No. 12/2017-Central Tax (Rate). However, with an amended update in Notification No. 16/2021, the AAR held that the services provided to government departments would be taxable after January 1, 2022.
The AAR ruled that any consulting service provided to MJP post this date will fall under the SAC code 9983 and attract an 18% tax rate. The AAR referred to the judgment of the Supreme Court, where it was mainly highlighted that only those kinds of bodies which qualify on specific grounds should take exemption, and it is a strictly interpreted law. According to the judgment, as MJP receives government funding, consultancy services are liable to GST as noted in the contracts; the judgment holds that the services now fall into the category similar to any other taxable service.
AAR Maharashtra decreed M/s. According to the order by Nisarga Consultancy in the case of [Order No. GST-ARA-21 of 2023-24/2024-25/B-55 dated July 31, 2024 It is observed that in the case of the petitioner, serial number 3 of exemption Notification No. 12/2017-Central Tax (Rate) dated 28th June, 2017 it is considered to be work assigned under JJM of MJP to be Government of India undertaking and, for the purpose of services for which a bill is brought within the dates 01.01.2022 tax shall be zero, and the GST chargeability at 18 % should be recovered when this assignment of the said work has been assigned as JJM under the notification 11/2017- Central Tax (Rate), dated 28th June, 2017. Sr. No. 21 Heading 9983.
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