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2019 (9) TMI 514 - AAR - GST
Supply of facility management services like mechanised and manual cleaning, housekeeping, security services etc. to various Central Government and State Government hospitals - exemption from payment of GST is available for such supplies in terms of Notification No 12/2017-CT(Rate) dated 28.06.2017 and WB Govt Gazette Notification-1136-FT dated 28.06.2017, as amended - HELD THAT:-The Applicant has submitted a copy of the work order issued by SSKM Hospital. It refers to dusting, scrubbing, mopping disinfecting the hospital premises, cleaning of toilets etc. The work order clearly mentions that GST @ 18% is applicable on the services. It is a State Government hospital and, therefore, the Applicant’s service in terms of the above work order qualifies to be a supply to the Government. The Applicant is supplying cleaning and sweeping service, which is a composite supply having supply of cleaning material ancillary or incidental to the principal supply of cleaning and sweeping service.
Whether the service being provided is an activity relatable to a function listed under the Eleventh or the Twelfth Schedule under Art 243 G or 243 W of the Constitution? - HELD THAT:- ‘Security services’ provided to Government Hospitals and Medical Colleges are not covered under the either lists. ‘Cleaning and sweeping services’ can be considered as related to the function listed under Sl No. 26 of the Eleventh Schedule, namely “Health and sanitation, including hospitals, primary health centres and dispensaries”, provided ‘sanitation service’, as classified under SAC 99945, includes sweeping and cleaning of places like hospitals etc. As the scope of the functions listed under the Eleventh Schedule is considered with respect to applicability of the Exemption Notification under the GST, the scope of any service should be determined in terms of the Scheme of Classification of the Services referred to in Explanation 3(i) of the Exemption Notification.
‘Sanitation and similar services’, classified under SAC 99945, includes sweeping and cleaning, but only with reference cleaning of a road or street. Cleaning of hospital premises is not, therefore, classified under ‘Sanitation or similar service’.
Thus, the services the Applicant are, therefore, not exempt under Sl No. 3 or 3A of the Exemption Notification.