TMI Blog2020 (6) TMI 538X X X X Extracts X X X X X X X X Extracts X X X X ..... e reply to the query raised by the applicant cannot be answered in plain no or yes . The applicant is eligible to claim exemption benefit under Sr.No.3 of Notification No.12/2017-Central Tax (Rate) dated 28.06.2017 for pure services (supply of manpower, security service) provided to Central Government, State Government, Local Authorities, Governmental Authorities, Government Entities as detailed above subject to the condition that the services provided to these entities mentioned above are 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. - GUJ/GAAR/R/2020/18 (In Application No. Advance Ruling/SGST&CGST/2018/AR/40) - - - Dated:- 19-5-2020 - SANJAY SAXENA AND MOHIT AGRAWAL, MEMBER Present for the applicant : Shri Rashmin S Vaja C.A BRIEF FACTS The applicant vide their application for Advance Ruling has submitted that they are a partnership firm registered under GST and having it s principle place of business at Mehsana, Gujarat and is engaged in the business of providin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mitted that they are providing man power supply service to Central Government, State Government and various entities including government entities; that they also provide such services to private organizations/corporate on which GST is collected and discharged in appropriate manner. The applicant has submitted the relevant portions of Notifications issued by the Central GST and State GST as under: Relevant portion of Notification No.12/2017-Central Tax(Rate) dated 28.06.2017 reads as under: G.S.R......(E).- In exercise of the powers conferred by sub-section (1) of section 11 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby exempts the intra-State supply of services of description as specified in column (3) of the Table below from so much of the central tax leviable thereon under sub-section (1) of section 9 of the said Act, as is in excess of the said tax calculated at the rate as specified in the corresponding entry in column (4) of the said Table, unless specified otherwise, subject to the relevant conditions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unction entrusted to a Municipality under article 243W of the Constitution . NIL NIL 3. The applicant has submitted that the pre-requisite for claiming exemption under the above entry is that it is necessary to provide pure service by way of any activity in relation to any function entrusted to Panchayat under article 243G of the Constitution or in relation to any function entrusted to a Municipality under Article 243W of the Constitution; that definition of Pure service has not been given anywhere so that we can refer it; that hence, the term is construed by the applicant in general meaning as: Pure Service means any supply for consideration in which goods are not supplied along with services to construe the same as composite supply, hence if a person provides only service to any person for a consideration without involvement of supply of goods along with the supply of services then the said supply of service can be termed as supply of service. The applicant has also given definitions of Central Government, State Government, local authority, governmental authority, government entity in his submission. 4. The applicant h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ustrial 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 sections of society, including the handicapped and mentally retarded. 10. Slum improvement and upgradation. 11. Urban poverty alleviation. 12. Provision of urban amenities and facilities such as parks, gardens, playgrounds. 13. Promotion of cultural, educational and aesthetic aspects. 14. Burials and burial grounds; cremations, cremation grounds; and electric crematoriums. 15. Cattle pounds; prevention of cruelty to animals. 16. Vital statistics including registration of births and deaths. 17. Public amenities including street lighting, parking lots, bus stops and public conveniences. 18. Regulation of slaughter houses and tanneries. 7. The applicant has submitted that since the definition of pure service is not given in GST law and hence applicant have to construe its definition in general meaning i.e. pure service means any supply for consideration in which no goods ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Whether Central Government or State Government or Union territory or Local authority or Governmental authority or Government entity. 1. Coast Guard Region (NW) Central Government 2. Collector of Ahmedabad, Bhavnagar, Godhara and Dwarka Gujarat State Government 3. Bhavnagar Forest Department Gujarat State Government 4. Jilla Panchayat, Mehsana Local Authority 5. Chief Officer of Ahmedabad and Mehsana Municipal Corporation Local Authority 6. Industrial Extension Bureau, Gujarat Governmental Authority 7. Sardar Sarovar Nigam Limited Governmental Authority 8. Gujarat State Nagrik Purvatha Limited Governmental Authority 9. Chief Engineer, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ication for advance ruling as well as at the time of personal hearing. The issue involved in this case is whether applicant is eligible to claim exemption benefit under Sr.No.3 of Notification No.12/2017-Central Tax (Rate) dated 28.06.2017and Notification No.12/2017-State Tax(Rate) dated 30.06.2017 for pure services (supply of manpower, security service) provided to Central Government, State Government, Local Authorities, Governmental Authorities and Government Entities. As per the submission given by the applicant they are providing services of manpower supply/security services to the following entities: Sr.No. Name of party Amount (Rs.) Constitution of party 1. Coast Guard Region (NW) 72,00204/- Central Government 2. Collector of Ahmedabad, Bhavnagar, Godhara and Dwarka 1,03,70,590/- Gujarat State Government 3. Bhavnagar Forest Department 48,689/- Gujarat State Governm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Bhavnagar Forest Department 48,689/- Gujarat State Government 4. Jilla Panchayat, Mehsana 1,60,983/- Local Authority 5. Chief Officer of Ahmedabad and Mehsana Municipal Corporation 11,60,992/- Local Authority 6. Industrial Extension Bureau, Gujarat 3,60,248/- Governmental Authority 7. Sardar Sarovar Nigam limited 65,62,501/- Governmental Authority 8. Gujarat State Nagrikpurvatha limited 1,63,574/- Governmental Authority 9. Chief Engineer, PGVCL 2,64,00,693/- Limited company The applicant has asked the following question on which advance ruling is sought: Whether the applicant is eligible to claim exemption benefit under Sr.No.3 of Notifi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ommendations of the Council, hereby exempts the intra-State supply of services of description as specified in column (3) of the Table below from so much of the state tax leviable thereon under sub-section (1) of section 9 of the said Act, as is in excess of the said tax calculated at the rate as specified in the corresponding entry in column (4) of the said Table, unless specified otherwise, subject to the relevant conditions as specified in the corresponding entry in column (5) of the said Table, namely:- Sl.No. Chapter Description of Service Rate Condition 3. Chapter 99 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 or a Government entity 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 Constitut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (b) a Municipality as defined in clause (e) of article 243P of the Constitution; (c) a Municipal Committee, a Zilla Parishad, a District Board, and any other authority legally entitled to, or entrusted by the Central Government or any State Government with the control or management of a municipal or local fund; (d) a Cantonment Board as defined in section 3 of the Cantonments Act, 2006; (e) a Regional Council or a District Council constituted under the Sixth Schedule to the Constitution; (f) a Development Board constituted under article 371 of the Constitution; or (g) a Regional Council constituted under article 371A of the Constitution; As per clause(zf) of paragraph-2 of Notification No.12/2017-Central Tax (Rate) dated 28.06.2017, governmental authority has the same meaning as assigned to it in the explanation to clause (16) of section 2 of the Integrated Goods and Services Act, 2017 (13 of 2017). Clause (16) of section 2 of the Integrated Goods and Services Act, 2017 (13 of 2017) reads as under: Explanation . For the purposes of this clause, the expression governmental authority means an authority or a board or any other body, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6. Industrial Extension Bureau, Gujarat Governmental Authority 7. Sardar Sarovar Nigam Limited Governmental Authority 8. Gujarat State Nagrik Purvatha Limited Governmental Authority 9. Chief Engineer, PGVCL Governmental Authority 13.3 The third condition to be verified is whether the services provided to these entities mentioned above are 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. The functions entrusted to the panchayats by Article 243G of the Constitution of India are listed hereunder: 1. Agriculture, including agricultural extension. 2. Land improvement, implementation of land reforms, land consolidation and soil conservation. 3. Minor irrigation, water management and watershed development. 4. An ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... street lighting, parking lots, bus stops and public conveniences. 18. Regulation of slaughter houses and tanneries. 13.4. We find that during the course of discharge of various functions by various entities, different work orders are issued according to which services are provided by the applicant. Since the applicant, at various stages, enters into different agreements with various authorities for provision of services, it is not practical to examine at this stage, each contract, he has entered into with the recipients of services. Further, during the course of providing services, the applicant would also enter into further agreements with the service recipients. It is not possible to foresee the nature of all these agreements at present. Further, there could also be modifications/ amendments in the existing agreements and the nature of service could be subsequently altered. Therefore, the reply to the query raised by the applicant cannot be answered in plain no or yes . Therefore, we hold that the nature of these agreements and the services provided by the applicant would determine whether the third condition as discussed above has been met or otherwise. We hold that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant in relation of discharge of functions covered under Sr. No. 29 (Maintenance of community assets) of Article 243G of the Constitution of India and Sr. No. 12 (Provision of urban amenities and facilities such as parks, gardens, playgrounds) and Sr. No. 17 (Public amenities including street lighting, parking lots, bus stops and public conveniences) of Article 243W of the Constitution of India. d. Likewise, Ahmedabad Municipal Corporation vide letter dated 08.10.2016 with reference to Standing Committee Resolution no. 798 dated 29.09.2016 awarded letter of acceptance for manual and mechanised housekeeping work at Kankaria Lake Front and Kids City. We find that the said service is provided by the applicant in relation of discharge of functions covered under Sr. No. 12 (Provision of urban amenities and facilities such as parks, gardens, playgrounds) of Article 243W of the Constitution of India. e. The letter of acceptance no. NPCDn.4/5/AB/TC/Security Operation of Gate2014/JBC/Distr/1670 dated 29.10.2014 has been awarded to the applicant by Sardar Sarovar Narmada Nigam Limited for providing service for security and operation of gates of on regulating structures of Branch C ..... X X X X Extracts X X X X X X X X Extracts X X X X
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