No GST exemption to Airtel for providing data and voice services to Greater Hyderabad Municipal Corporation: AAR
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- Last Updated on 28 January, 2022
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Case Details: Authority for Advance Rulings, Telangana Bharti Airtel Ltd., In re - [2022] 134 taxmann.com 142 (AAR- TELANGANA)
Judiciary and Counsel Details
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- B. Raghu Kiran and S.V. Kasi Visweswara Rao, Member
Facts of the Case
The applicant was providing telecom data and voice services to Greater Hyderabad Municipal Corporation (GHMC) to be used by its employees for general office and administrative purposes. It filed an application for advance ruling to determine taxability of services provided by the applicant to GHMC by considering the service as a pure service in relation to functions entrusted under article 243W.
AAR Held
The Authority for Advance Ruling observed that as per serial no. 3 of Notification No. 12/2017, pure services provided “in relation to any function” entrusted to a municipality under Article 243W of the Constitution of India would be eligible for exemption from GST. But in the instant case, the applicant was providing data and voice services to GHMC and to the employees of the municipalities and general purpose for office and administrative purposes. Thus there would be no direct relation between the services provided by the applicant and the functions discharged by the GHMC under Article 243W read with schedule 12 to the Constitution of India. Therefore these services would not qualify for exemption under Notification No. 12/2017.
List of Cases Referred to
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- Doypack Systems (P.) Ltd. v. Union of India AIR 1988 SC 782 (para 7)
- H.H. Maharajadhiraja Madhav Rao Jiwaji Rao Scindia v. Union of India AIR 1971 SC 530 (para 7).
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