TMI Blog2018 (12) TMI 228X X X X Extracts X X X X X X X X Extracts X X X X ..... e invoice raised by the applicant mentions services rendered as, “Being round the clock helper to security service Providing assistance to the Security Guards of PCMC is an activity in relation to various functions as enumerated above which have been entrusted to a Municipality under article 243W of the Constitution. The applicant is entitled to the benefit of Notification No, 12/2007-CT(Rate) dated 28.06.2017. Ruling:- The Exemption N/N. 12/2017-Central Tax (Rate) dated 28/06/2017 (Entry No. 3 of the Notfn.) is applicable to the applicant for the Pure services i.e. Security Services rendered to Pimpri Chinch wad Municipal Corporation in relation to functions entrusted to Municipality under Article 243W of the Constitution thereby exempting the applicant service provider from the whole of GST. - GST-ARA-58/2018-19/B-132 - - - Dated:- 24-10-2018 - SHRI B.V. BORHADE, AND SHRI PANKAJ KUMAR, MEMBER PROCEEDINGS (Under section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017) The present application has been filed under section 97 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Ser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unctions entrusted to PCMC are exempt from GST. Moreover it is to mention that PCMC have also advised not to charge GST on Security Services provided to them in relation to aforesaid functions as being Security Services are exempt under Notification No. 12/2017 dated 28/06/2017 since these services are provided to Municipality in relation to the function entrusted to Municipality under Article 243W of the Constitution, thereby the applicant is not recovering any GST thereon. The applicant is providing Security Persons to PCMC as per the agreement between applicant and PCMC. Statement containing the applicant s interpretation of law and or facts as the case may be. in respect of the aforesaid question(s) In view of the aforesaid facts the applicant is of the opinion that the Security Services provided by the applicant to PCMC are exempt from GST, in view of Notification No. 12/2017 - Central Tax (Rate) dated 28/06/2017 (Sl. No.3). As the said Security Services are Pure Services and are being provided to Municipalities in relation to the functions entrusted to them under Article 243W of the Constitution of India. The aforesaid Services being provided by the app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the security guards provided by us are working under the overall supervision of the Security Guards, who are on the establishment of the PCMC. However the persons provided by us are performing the duties of Security Guards only and carry out the entire function of the security and also responsible for the same . These facts are also evident from the duty list and functions which have been mentioned in 1 Annexure- A to the agreement between us and PCMC. The said 6:4 annexure-A specifies and elaborates the duties to be discharged by the persons provided by us as security guards(ln the contract termed as Assistant/ Madatnis ). The said duties as specified in Annexure-A are as mentioned below: 1) That the guards provided by us should work under the supervision of the security guards who are on the establishment of PCMC. 2) Further, as per the said annexure-A, the guards provided by us are supposed to prevent any untoward incident in the premises, look after the security of furniture, computers and other valuables etc. in the premises. 3) They are also supposed to look after the premises after closure of the office, keep vigil on parking arrangements and not to a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ard. The said clarification is enclosed herewith for your ready reference. (E:1) From the gist of the said clarification, it can be seen that the competent authority that is Assistant Commissioner (Security) PCMC, Pune-411018 has clarified that, as per Annexure -A of the agreement (Duty list Sl.No.02 to 12) even though the persons provided by us are working under the supervision and directions of the security guards who are on the establishment of PCMC, the persons provided by us are doing the security work in relation to urban planning and public safety at large. Moreover in support of our contention that the persons provided by us are discharging the duties of security guards only, we hereby submit the photo copy of ID cards of 5.3/6.6 security guards issued by us being used by the persons provided by us for security work. These ID cards are displayed on the uniforms of the persons working as security guards provided by us. The Honorable Member may kindly go through the same. (8.348:47) In view of the above, it is evident that the persons being provided by us to PCMC are performing the duties of security guards only and also responsible for the entire security arrangemen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... notification that pure services provided by way of any activity which are in relation to any function entrusted to Municipality under Article 243W of the Constitution are fully exempt from GST, unconditionally. Therefore security services provided by us, be it called by any name either providing security guards or manpower services as contended by the department are exempt from GST under the aforesaid notification, since they are used in relation to functions entrusted to Municipality (PCMC) under article 243 W of the Constitution. We therefore request your honor to give the Advance Ruling accordingly. We also request your honor that, in case any additional point is raised by the department to oppose the Said application, we may be given opportunity to present our say on the points raised by the department. 03. CONTENTION - AS PER THE CONCERNED OFFICER The submission, as reproduced verbatim, could be seen thus- Question on which advance ruling is required: Whether Exemption Notification 12/2017-Central Tax (Rate) dt.28.06.2017 (Entry No. 3 of the Notification) is applicable to the applicant for the pure services i.e. Security Services rendered to Pimpri Chi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d responsibilities upon Municipalities, subject to such conditions as may be specified therein, with respect to- (i) the preparation of plans for economic development and social justice; (ii) the performance of functions and the implementation of schemes as may be entrusted to them including those in relation to the matters listed in the Twelfth Schedule; (b) the Committees with such powers and authority as may be necessary to enable them to carry out the responsibilities conferred upon them including those in relation to the matters listed in the Twelfth Schedule. Twelfth Schedule (Article 243W of the Constitution (Seventy-Fourth Amendment) Act, 1992) reads as under: 1. Urban planning including town planning. 2. Planning of land-use and construction of buildings. 3. Planning for economic and social development. 4. Roads and bridges. 5. Water supply for domestic, industrial and commercial purposes. 6. Public health, sanitation conservancy and solid waste management. 7. Fire services. 8. Urban forestry, protection of the environment and promotion of ecological aspects. 9. Safeguarding the interests of weaker s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The Security Services are provided in form of providing Security guards; to Water Pump Houses, Purification Plants run by PCMC from where water supply is made to the city; to Hospitals and Dispensaries run by PCMC; for Solid Waste Management, Slum Improvement undertaken by PCMC; in relation to Urban Planning including Town Planning, which is for Public Safety at large. According to their submissions all these Services are covered in article 243W of the Constitution, as functions entrusted to Municipality. Hence the provisions as per Sl.No. 3 of the Notification No. 12/2017 - Central Tax (Rate) dated 28/06/2017 as amended applies in their case and therefore, the Security Services being Pure Services, provided by the applicant to PCMC in relation to afore said functions entrusted to PCMC are exempt from GST. The department has submitted that as per the invoice No. 31946 dated 13.07.2018 of the applicant, the service description has been given as Being round the clock helper to security service provided to coming under (A, B, C, D) Prabhag PCMX Pimpri for the work of Health center, Water Supply, {Purification STP plant as per given list No. of Security Guard for the month of Ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... afety at large. Further they have submitted that even assuming that their services are termed as manpower services for the work of security arrangements to various properties of PCMC, still the services provided by them fell under the ambit of the Exemption Notification No. 12/2017-Central Tax (Rate) dated 28/06/2017 (Entry No. 03 of the Notfn.). We find that there is no doubt in anyone s mind that the personnel provided by the applicant to the PCMC are actually aiding and helping the security guards of PCMC The only question that needs to be looked into is Whether the activities of the applicant s personnel who are there to assist/help the security guards of PCMC can be equated with as being in relation to any function entrusted to a Municipality under article 243W of the Constitution?. If the answer is yes then it is Clear that they would be eligible for exemption since in that case it would be seen that the personnel provided by the applicant are performing duties in relation to functions entrusted to Municipality (PCMC) under article 243W of the Constitution. We now reproduce Sl No. 3 of Notification No. 12/2017- Central Tax (Rate) dated 28/06/2017, under which the applic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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