TMI Blog2019 (1) TMI 1491X X X X Extracts X X X X X X X X Extracts X X X X ..... diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognized system of medicine in India and includes services by way of transportation of patient to and from a clinical establishment. It is classified under SAC 99931. It does not include any of the services the Applicant bundled under the description ‘Scavenging Services’ - Again, ‘Sanitation and similar services’ are classified under SAC 99945. It 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’. The services the Applicant bundled under the description ‘Scavenging Services’ are, therefore, not exempt under Sl No. 3 of the Exemption Notification. Ruling:- Benefit of exemption from the payment of GST is not available to the Applicant under Notification No 12/2017-CT(Rate) dated 28.06.2017 and WB Govt Gazette Notification-1136FT dated 28.06.2017, as amended, for the supply of Security Services and the bundle of service that he describes as ‘Scavenging Services’. - Case No. 34 of 2018 Order No. 38/WBAAR/2018-19 - - - Dated:- 28-1-2019 - SYDNEY D S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... exemption from GST is granted under Serial No 3 to the Pure services (excluding works contract service or other composite supplies involving supply of any goods) provided to the Central Government, State Government or Union territory or local authority or a Governmental authority by way of any activity in relation to any function entrusted to a Panchayat under article 243G of the Constitution or in relation to any function entrusted to a Municipality under article 243W of the Constitution . 4. The concerned officer from the revenue submits that the above exemption is extended to Panchayats and Municipalities. The Applicant, being a private party, is not eligible for this exemption. It is pertinent to examine in this context the ambit of the exemption under Sl Nos. 3 or 3A of the Exemption Notification. They cover supply of certain services to the government, local authority, governmental authority, or government entity. The service should be an activity in relation to any function entrusted to a Panchayat under Art 243G of the Constitution or to a Municipality under Art 243W of the Constitution. 5. In its Circular No. 51/25/2018-GST dated 31/07/2018 the Central Gove ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g supplied is pure service or composite supply, (2) whether the recipient is government, local authority, governmental authority or government entity, and (3) whether the services provided are classifiable as a function entrusted to a Panchayat or a Municipality under the Constitution. 6. Pure service is not defined in the GST Act. However, it appears from the context that services involving no supply of goods are considered as pure service. The Applicant claims he is not supplying any goods while provisioning the services. The Applicant s services are, therefore, classifiable as pure service. The supplies are made, according to the Application, to hospitals owned or managed by the government. It is, therefore, obvious that the recipient is government or governmental authority etc. 7. Before deciding the applicability of Sl No. 3 of the Exemption Notification, the functions of a Panchayat or a Municipality under the Constitution needs to be discussed. Article 243G of the Constitution discusses the Powers, authority and responsibilities of Panchayats, stating that Subject to the provisions of this Constitution the Legislature of a State may, by law, endow the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he handicapped and mentally retarded 23 Family welfare 24 Women and child development 25 Markets and Fairs 26 Health and sanitation including hospitals, primary health centres and dispensaries 27 Cultural activities 28 Libraries 29 Poverty Alleviation Programmes It is expected that the subjects covered under the Eleventh Schedule of the Indian Constitution are made to ensure the development of the rural India. Article 243W of the Constitution discusses the Powers, authority and responsibilities of Municipalities, etc stating that Subject to the provisions of this Constitution, the Legislature of a State may, by law, endow, .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 . List of 18 items covered under the Twelfth Schedule of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vices , according to the Applicant s submission, includes manual cleaning, duties of attendant or operator of trolleys. Article 243G under Serial No 26 covers Health and sanitation, including hospitals, primary health centres and dispensaries . Article 243W under Serial No 7 covers Public health sanitation, conservancy and solid waste management . No other entries in the Eleventh or the Twelfth Schedules of the Constitution appear relevant while examining applicability of the Applicant s services bundled as Scavenging Services . Health Care Service is defined under clause 2(zg) of the Exemption Notification. It means inter alia any service by way of diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognized system of medicine in India and includes services by way of transportation of patient to and from a clinical establishment. It is classified under SAC 99931. It does not include any of the services the Applicant bundled under the description Scavenging Services . Again, Sanitation and similar services are classified under SAC 99945. It includes sweeping and cleaning, but only with reference cleaning of a road or ..... X X X X Extracts X X X X X X X X Extracts X X X X
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