No GST on Comprehensive Water Supply Planning Services: AAR

The Authority for Advance Rulings (AAR) has ruled that comprehensive water supply planning services provided to municipal corporations are not subject to GST. The ruling was based on the nature of the services, which are considered public welfare services and therefore exempt from GST under the law. This decision will have significant implications for companies providing similar services to government bodies, offering clarity on tax exemptions for essential services. The ruling promotes the idea that services rendered for public welfare should not be burdened with additional tax liabilities.