In Advance Ruling No. GUJ/GAAWN2O23I17-AAR- Gujarat AAR exempts Architectural Consultancy Service for SMIMER Hospital & College Campus from GST
Members Milind Kavatkar (SGST) & Amit Kumar Mishra (CGST) [26-04-2023]

Read Order: IN RE: v. Ajit Babubhai Jariwala

LE Correspondent

Mumbai, May 9, 2023: The Gujarat bench of the Authority for Advance Rulings (AAR) has ruled that the ‘Architectural Consultancy Service’ provided by the applicant to Surat Municipal Corporation (SMC) for the construction of SMIMER Hospital & College Campus fell under entry no. 3 of notification No. 12/2017-Central (Rate) dated 28.6.2017 and the supply of services were exempt from GST.

The applicant in the said case, was engaged in providing a wide range of professional consulting services. The applicant had been awarded work order, to provide architectural consultancy services to SMC for the project involving SMIMER Hospital & College Campus. The applicant had filed an application seeking an advance ruling on whether the architectural consultancy service provided by the applicant to SMC for the construction of SMIMER Hospital & College Campus was eligible for exemption under entry no. 3 of notification No. 12/2017-Central (Rate) dated 28.6.2017 and if the exemption was applicable to the applicant, would the ‘pure services’ provided by a subcontractor to the applicant was also covered under the same exemption.

The Authority opined that the supply of drawings, samples, physical models, and similar items cannot be classified as the supply of goods, therefore, the service provided by the applicant were considered a ‘pure service’ that did not involve any supply of goods. The Authority held that the pure services [excluding works contract service or other composite supplies involving supply of any goods] provided to SMC by way of any activity in relation to a function entrusted to a Municipality under Article 243W of the Constitution of India was exempt from GST.

The Authority further clarified that the question regarding the subcontractor's exemption from GST cannot be answered, as the applicant was seeking a ruling on behalf of their subcontractor and was not the direct supplier of the service. The Authority held that in the said circumstances, the applicant did not have the legal standing to seek a ruling in this particular matter.