TMI Blog2021 (8) TMI 357X X X X Extracts X X X X X X X X Extracts X X X X ..... to tax at 18% - The said supply of services provided by the applicant is covered under Service Accounting Code (SAC) under chapter No. 9985. Dealer can be Contractor to supply labour or not - HELD THAT:- The applicant states that, the dealer applies for work as per tender(E-procurement) as a Contractor to supply labour and TDS as per Income Tax Act is deducted u/s 194C (As a Contractor or Sub-Contractor) @ 1% and wants to know why not dealer be treated as a Contractor under GST Act, 2017. The said question does not fall under the provisions of Section 97(2) of the CGST/KGST Act, 2017. - KAR ADRG 46/2021 - - - Dated:- 30-7-2021 - DR. M.P. RAVI PRASAD AND SRI. MASHHOOD UR REHMAN FAROOQUI, MEMBER Represented by : Sri Mahantesh K Hospeth Chartered Accountant and Duly Authorised Representative ORDER UNDER SECTION 98(4) OF THE CGST ACT, 2017 UNDER SECTION 98(4) OF THE KGST ACT, 2017 M/s. Sadanand Manpower Service, (hereafter referred as applicant ) CTS No. 10988, Near Anand Apartment, Sadashivanagar, Belagavi-590010, having GSTIN 29EBAPK5203E2ZZ, have filed an application for Advance Ruling under Section 97 of KGST Act, 2017 read with Rule 104 of KGST Rules ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the application filed by the applicant. In response to this letter, the Assistant Commissioner of Central Tax, Belagavi has furnished comments as below: Comments of the Range office is respect to Para No. 14 of the above application are submitted as under:- 1. Whether Labour supply to Government Departments from a Registered dealer under GST Act like providing Drivers, Peon, Housekeeping, Data Entry Operators and other clerical staff attracts exemption from levy of GST a per Notification No. 11/2017-CT(Rate) and 12/2017 CT(Rate) both dated 28th June 2017. Comments :- In the case of A.B. Enterprise (GST AAR Gujrat) Advance Ruling Authority of Gujarat (Judgment dated 19-05-2020 has held that :- Applicant is eligible to claim exemption benefit under SI.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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... department of agriculture and department of food and civil supplies. 8.1 The applicant states that pure labor services provided to government, local authority, government authority or government entity is exempt as per the Notification No. 12/2017- Central Tax (Rate) dated 28.06.2017. 8.2 Whether the manpower services provided to various government departments is exempted under entry no.3 of the Notification No. 12/2017- Central Tax (Rate) dated 28.06.2017, is to be examined and the said entry reads as under: Pure Services (excluding works contract service or other composite supplies involving 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. 8.3 From the above said entry of the notification it is observed that, in order to claim exemption on supply of man power services two conditions should be satisfied: 1. Pure Services (excluding works contract service or other composit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntres and dispensaries. 24. Family welfare. 25. Women and child development. 26. Social welfare, including welfare of the handicapped and mentally retarded. 27. Welfare of the weaker sections, and in particular, of the Scheduled Castes and the Scheduled Tribes. 28. Public distribution system. 29. Maintenance of community assets. 243W. Powers, authority and responsibilities of Municipalities, etc Subject to the provisions of this Constitution, the Legislature of a State may, by law, endow (a) the Municipalities with such powers and authority as may be necessary to enable them to function as institutions of self-government and such law, may contain provisions for the devolution of powers and 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; There are 18 items in the twelfth schedule of the Constitution which are as below: 1. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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