No GST On Supply of Data Entry Operators & IT Personnel For Jal Jeevan Mission: AAR

The West Bengal Authority of Advance Ruling (AAR) has ruled that no GST on Supply of Data Entry Operators & IT Personnel for Jal Jeevan Mission.

The bench of Dr Tanisha Dutta and Joyjit Banik has observed that supplies of data entry operator & junior engineer (System Administrator, Software Support Personnel) made by the applicant to the Public Health Engineering Department (PHE), Government of West Bengal for executing Jal Jeevan Mission is exempted from payment of tax.

The applicant is a Public Sector Undertaking Company of Government of West Bengal. It basically works as Nodal Agency of Government of West Bengal regarding Development of Information Technology Infrastructure, E-governance and maintenance thereof for various Departments of Government of West Bengal and PSUs. The Company collects orders from various Government organizations and appoints third party vendors, back-to-back contract basis and it basically earned a margin for maintaining its Administration and Supervision charges.

The applicant sought the advance ruling on the issue whether supply of data entry operator & junior engineer (System Administrator, Software Support Personnel) throughout the West Bengal in connection with JJM is pure service provided to the West Bengal Government by way of any activity in relation to any function entrusted to a Panchayat under article 243G of the Constitution or in relation to any function entrusted to a Municipality under article 243W of the Constitution.

The applicant submitted that the Constitution of India in its Eleventh & Twelfth Schedule has enumerated the functions entrusted to a Panchayat under article 243G or to a municipality under article 243W respectively. The West Bengal Government through its Public Health Engineering Department (PHE) has initiated a Water Supply Scheme for the benefit of the general public. The applicant was engaged in this project to supply data entry operator & junior engineer (System Administrator, Software Support Personnel).

The AAR held that the services as provided by the applicant for supply of data entry operator & junior engineer (System Administrator, Software Support Personnel) throughout the West Bengal in connection with JJM is found to be covered by the subject matter as listed in the Eleventh and/or Twelfth Schedule thereby can be regarded as a supply in relation to functions entrusted to a Panchayat under article 243G and/or to a municipality under article 243W of the Constitution of India.

Ruling Details

Applicant Name: Webel Technology Limited

Date: 14/02/2024

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