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TMI Blog2021 (2) TMI 197X X X X Extracts X X X X X X X X Extracts X X X X ..... ing question: Whether applicant should charge GST @ 18% for providing security guards and housekeeping services to Kuvempu University, Shivamogga? BRIEF FACTS OF THE CASE: 3.1 The applicant company is registered under provisions of the GST Act, engaged in providing security services such as providing guards and manpower services and housekeeping service based on requirement of the customers and contract awarded. 3.2 The applicant has stated that they have entered into an agreement with Kuvempu University, Shivamogga for providing security guards and housekeeping services on contract basis and the applicant was successfully awarded this contact through E-tender procurement bid. 3.3 The applicant has stated that the recipient of the services, i.e. Kuvempu University having its administrative Office at Jnana Sahyadri, Shankarghatta, Bhadravathi Taluk, Shivamogga District imparts education through regular and distance mode and having its territorial jurisdiction spreading over the districts of Shivamogga and Chickamaglur. It was established in 1987 by the act of the Karnataka State legislature through amendment No. 28/1976 dated 29 January 1989 under the Karnataka State Universit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... specific provisions. Therefore, unless a mention is particularly made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the KGST Act. 5.2 We have considered the submissions made by the applicant in their application for advance ruling as well as the submissions made by the director of the applicant company during the personal hearing. We also considered the issue involved, on which advance ruling is sought by the applicant, relevant facts & the applicant's interpretation of law. 5.3 The nature, of impugned services, is examined and found that the applicant had entered into an agreement with Kuvempu University, Shivamogga. On verification of the Tender copy, provided by the applicant, it is observed that the title of the tender is "Tender for the Supply of Manpower for Cleaning, Maintenance Work, Gardening, Horticulture and Security Services on Outsourcing basis". Further, period of contract is for three years and the time commences from the date of deployment of personnel to the University. The condition is that the applicant had to adhere to the Labour Laws in relation to its employees and ensure paym ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sfactory and attendance as per the bill preferred by the service provider. Further, from para 5.23 it is observed that no wage / remuneration will be paid to the deployed persons for the days of absence from duty. Further, in para 5.28 it is stipulated that the agency would maintain an attendance register in respect of the staff deployed by the service provider entity on the basis of which wages/ remuneration will be decided in respect of the staff at the approved rates. Further, in para 5.29, it is clearly stated that it shall be the duty of the service provider to pay the salary and other dues every month and thereafter claim reimbursement from the University. Further in para 5.30, it is stated that each of the manpower supplied is entitled to one day casual leave for having worked in a calendar month and in case more than a day in a calendar month, the wages of such excess leave shall be deducted in the monthly bill. It is also seen from the agreement that the University shall provide soaps/ detergents/ chemicals and all such other consumables / equipments, to the cleaning workers, required by them for effective cleaning of the premises of the University. 5.6 It is clear from t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ayat under article 243G of the Constitution or relation to any function entrusted to a Municipality under article 243W of the Constitution. 8.3 Government Authority has been defined in Notification No. 32/2017-CT (R) dated 13.10.2017 as: "Governmental Authority" means an authority or a board or any other body, (i) set up by an Act of Parliament or a State Legislature; or (ii) established by any Government, with 90 per cent. or more participation by way of equity or control, to carry out any function entrusted to a Municipality under article 243 W of the Constitution or to a Panchayat under article 243 G of the Constitution." It has already been stated above that Kuvempu University was established in 1987 by an Act of the Karnataka State legislature through amendment No. 28/1976 dated 29 January 1989 under the Karnataka State University Act 1976. Thus, it qualifies to be Government Authority. 8.4 Now we need to examine whether providing manpower for security and housekeeping services falls under Article 243G or 243W of the constitution. Article 243G and Article 243W of the constitution are reproduced below: 243G. Powers, authority and responsibilities of Panchayats Sub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tate Government or Union territory; (iii) security or cleaning or housekeeping services performed in such educational institution; (iv) services relating to admission to, or conduct of examination by, such institution; upto higher secondary: Provided that nothing contained in entry (b) shall apply to an educational institution other than an institution providing services by way of pre-school education and education up to higher secondary school or equivalent. Nil Nil 9.2 The recipient of the applicant i.e Kuvempu University does not provide education by way of pre-school and education upto higher secondary school or equivalent, and also due to the fact that the services provided to the University are not security or cleaning or housekeeping services but supply of manpower services as stated above. Hence the applicant is also not eligible to get exemption under entry number 66 of entry (b) of Notification No. 12/2017-Central Tax (Rate) dated 28-06-2017. 10. Further the applicant is of the view that they are providing supply of Security service as well as manpower service used for maintenance and cleaning of University premises and play ground, campus area and building & off ..... X X X X Extracts X X X X X X X X Extracts X X X X
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