No GST on Services of Designing & Developing of Applications, GIS Mapping, Surveying etc. for Water Distribution Networks | AAR

Case Details: Rimita Mukherjee, In re - [2025] 172 taxmann.com 269 (AAR-WEST BENGAL)

Judiciary and Counsel Details

• Dr Tanisha Dutta, Member, CGST and CX
• Rajkumar Banerjee, Adv. & Ms Payel Agarwal, FCA for the Petitioner.

Facts of the Case

The applicant, engaged in designing and developing web and mobile applications, GIS mapping, digital and analog surveying, data management, analysis, documentation, and technical consultancy for water distribution networks, sought an advance ruling on GST applicability. The services were provided under work orders from the Directorate of Public Health Engineering (PHED), Government of West Bengal, for an integrated monitoring system for piped water supply schemes. The applicant contended that these services qualified as ‘pure services’ under Sl. No. 3 of Notification No. 12/2017-Central Tax (Rate) dated 28-06-2017, as they were rendered to a government entity for functions entrusted to Panchayats and Municipalities under the Eleventh and Twelfth Schedules of the Constitution, making them eligible for GST exemption.

AAR Held

The Hon’ble Authority for Advance Rulings (AAR), West Bengal, held that the services provided by the applicant constituted ‘pure services’ as they did not involve any transfer of goods. It was further observed that the Nadia and Burdwan Divisions were not independent entities but functioned as divisional offices of PHED, operating as part of the State Government. Since the services were provided to the State Government in relation to drinking water supply, a function listed in the Eleventh and Twelfth Schedules of the Constitution, they were classifiable under Sl. No. 3 of Notification No. 12/2017-Central Tax (Rate) dated 28-06-2017, thereby qualifying for exemption from GST. The ruling was issued in favour of the applicant, confirming that the services rendered to all three divisions were eligible for exemption under the said notification.