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2023 (6) TMI 1049 - AUTHORITY FOR ADVANCE RULING, ANDHRA PRADESHValuation of supply of services - pure services or not - supply of manpower services to various departments under state government provided by the applicant i.e., APCOS - services of manpower supply services to various government authorities and Government entities provided by the applicant - exemption from GST, as provided under Sr. 3A of Notification Number 12/2017-Central Tax (Rate) New Delhi, dated 28th June, 2017. Whether the services of manpower supply services to various Government authorities and Government entities provided by the applicant, ie., APCOS is eligible for exemption from GST, as per Notification Number 12/2017-Central Tax (Rate) New Delhi, dated 28th June, 2017 as amended vide notification 16/2021-Central tax (rate) dated 18-11-2021 being pure services, as per the definition and the services rendered thereby being listed in article 243G and 243W of Constitution as functions pertaining to panchayat and municipality? - HELD THAT:- It is pertinent to note that the eligibility of exemption is dependent on case-to-case basis and cannot be generalized. The exemption is available only in relation to services provided by way of any activity in relation to any function entrusted to a Panchayat under Article 243G of the Constitution of India or in relation to any function entrusted to a Municipality under Article 243W of the Constitution of India or not. The applicant had submitted only few work orders for verification and hence it is not feasible to pass an ruling on a generalised basis and hence it is being held at a principle level that any services provided in relation to any function entrusted to a panchayat under article 243G of Constitution of India or in relation to any function entrusted to a municipality under Article 243W of Constitution of India and the applicant be guided accordingly. Value of the supply of services rendered by AOCOS as per section 15 of GST Act - HELD THAT:- The applicant had put forth the point of argument that the value of the service rendered by them is only limited to collection of 'welfare fund' and also contented that the employees are not recruited by the applicant directly and they are concerned only with the payroll management . They have provided the way for the processing of bills and the way the monies are transferred directly into the employees account directly from the state CFMS account - As per section 15 of the GST act, the total value of the supply includes all the above and 18% GST is leviable on the entire amount (total of remuneration +EPE +ESI + welfare fund) and not just welfare fund as contended by the applicant.
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