Consultancy Services Provided to Government of Gujarat’s R&B Department Exempted from GST: GAAR
The applicant, M/s Devendra K Patel, offers work contract services apart from engineering consultancy services to many Government agencies like the R&B Department, Capital Project Division and Project Implementation Unit, etc. The applicant has received contacts from the R&B Department of the Government of Gujarat, for providing engineering/consultancy services for preparing and providing plans.
The applicant asked the following questions:
“(i) Whether providing services of preparing and providing plans and estimates and preparing and providing DTP [Draft Tender Plan] for the building work provided by the assessee to the R&B department, Government of Gujarat, under the contract would qualify as an activity in relation to Panchayat or Municipality under Article 243 G or Article 243W respectively, of the Constitution of India?;
(ii) If answer to the first question is in affirmative then, whether such service provided by the applicant would qualify as pure service [excluding works contract service or composite supplies involving supply of any goods] provided to the Central Government, State Government or Union Territory or local authority by way of any activity 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 243 W of the Constitution as provided in serial number 3 of notification No. 12/2017-CT (R), dtd 28.6.2017, and, thus be eligible for exemption from levy of CGST and SGST respectively?”
As per the Gujarat Authority for Advance Ruling (GAAR), the services provided for the building work provided by the assesee to the R&B department, Government of Gujarat, under the contract would qualify as related to Panchayat or Municipality under Article 243G or Article 243W, but only for the services provided for the following buildings/structures,
- Industrial Training Institute (ITI)
- Government schools, Hostels, District Library
- Nalsarovar Bird Sanctuary
- Stormwater Drains,
- Female dormitory of New Beggars Receiving Centre
- Storm Water Drain
- Centres under the Intensive Cattle Development Program (ICDP), the Intensive Poultry Development Project and the Animal Husbandry EPI Centre.
- New Rehabilitation Home for women and persons cured after treatment for mental illness.
- Fish Farm (Pond Steps and Shed) and its Office
- Beej Nigam Seed Godown
However, services provided for other types of buildings or projects would not qualify. The authority further rules that the services related to the buildings mentioned above would qualify as pure services and are eligible for CGST and SGST exemptions under Notification No. 12/2017-Central Tax (Rate).
Case Citation: M/s Devendra K Patel (Gujarat AAR); ADVANCE RULING NO. GUJ/GAAR/R/2025/43; 09/10/2025
