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TMI Blog2021 (10) TMI 366X X X X Extracts X X X X X X X X Extracts X X X X ..... d Notification No.12/2017-State Tax(Rate) dated 30-6-17. Both the notifications are similar and read as follows: Sr.No. Chapter, Section, Heading, Group or Service Code (Tariff) Description of Service Rate (percent) Condition (1) (2) (3) (4) (5) 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 Constitution. NIL NIL (ii) The pre-requisite for claiming exemption under the above entry is that it is necessary to provide pure service to the central government, state government or a governmental authority or a governmental entity 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 243W of the constitution; that the crux of the above exemptio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , and in particular, of the Scheduled Castes and the Scheduled Tribes. 28. Public distribution system. 29. Maintenance of community assets. Article 243W of the Constitution of India has entrusted the following functions to the Municipalities: 1. Urban planning including town planning. 2. Regulation 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 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 registrat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thout supply of any goods, hence the same are pure services. As regards the second condition, the definitions of Central Government or State Government or Local authority or Governmental authority or Government Entity as per the CGST Act, 2017 are as follows: (i) As per Section-2(53) of the CGST, Act, 2017, "Government" means the Central Government. (ii) As per Section-2(53) of the Gujarat GST, Act, 2017, "Government" means the State Government. (iii) "local authority" means-- (a) a "Panchayat" as defined in clause (d) of article 243 of the Constitution; (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 artic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ad and its subordinate offices-Local authority. 6. District Education Officer-Valsad-State Government. 7. Centre of Excellence for Floriculture and mango-Government Authority. 8. National Highways Authority of India-Government Authority. 9. Water Resource Development Department Damanganga and its offices State Government. 10. Deputy Director Agriculture-Valsad and its offices-State Government. 11. Office of the Deputy Director of Animal Husbandry Valsad and its offices State Government. 12. District Rural Development Agency, Valsad-Government Authority. 13. Agricultural Technology Management Agency-Government Authority/Entity. 14. Prayojana Vahivatdar Office-State Government. 15. Girls Literacy Residential School, Karchond (GSTES) Government Authority/Entity. 16. Vidhyut Nirikshak Office, Valsad-State Government. 17. Gujarat Landless Labour and Agriculturalist Housing Board Government Authority/Entity. 18. Matsya Udyog Adhikshak Ni Kacheri-State Government. 19. Government Science College-Pardi-Government Authority/Entity. 20. Collector and District Magistrate Office-Chhota Udepur and its subordinate offices-State Government. 21. District Education Of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yment of tax 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; that though the AAR is conditional, but the analysis of certain work orders clearly suggests that if the service recipient i.e. Central Government, State Government, Local authority is involved in any functions as per Article 243G or 243W, then the pure services provided to them would be eligible for exemption from payment of tax; that the services provided by the applicant are identical to the services provided by the present applicant in the above referred ruling and the case of the applicant is squarely covered in the afore said ruling. 5.5 The applicant has also placed reliance on Advance Ruling No. GUJ/GAAR/R/13/2021 in the case of Ahmedabad Municipal Transport Service wherein, at para-79, it is held as follows: "79. We find that the term 'in relation to' used in the above exemption is very much wide enough to cover every kind of servic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Class-IV Computer Operators, peons and Drivers through outsourcing agencies. (iii) F.No. Mabhay/Nimnuk/Vasi-487/2021 dated 22-4-2021 of the Deputy Collector, Midday Meal Scheme, Valsad regarding appointment of Computer operator, driver and peon at the Midday Meal Scheme Division, Collector Office, Valsad through outsource. (iv) F.No.SUP/EST/Operator Mahiti/Vashi-293 to 294-2021 dated 20-42021 of the District Supply officer, Valsad regarding appointment of Computer Operator, peon and driver in the Collector Office, Supply division, Valsad through outsource. (v) No. CB/EST-1/Outsource/Vashi.1598-1602/21 dated 19-4-2021 of the Chitnis to Collector, Valsad regarding appointment of peons and driver through outsource in the Chitnis Branch of the office of the Collector and District Magistrate, Valsad. (vi) No. Outsource/Hisabi/Vashi/2021 dated 20-4-2021 of the Deputy Collector, Valsad regarding appointment of peons, computer operator, water bearer and driver through outsource in the office of the Deputy Collector and Sub Divisional Magistrate, Valsad. (vii) No. Rokav/Makam/8851 dated 20-4-2021 of the Employment officer, Valsad regarding appointment of peon through outsource in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Vashi 138/2021 dated 20-4-2021 of the District Statistical Officer, Jilla Panchayat regarding requirement of peon and driver at Statistical Branch, Jilla Panchayat, Valsad through outsource. (xvii) No.Vahat/Outsource/Employee/2021/2020 dated 21-5-2021 issued by the District Inspector Land Office, Valsad regarding appointment of peons/sweepers in the office of the District Inspector Land Office, Valsad through outsource. (xviii) O.No.DCPU/Val/Outsource/43/2021-22 dated 27-4-2021 of the District Child Protection Officer, District Child Protection Unit, Valsad regarding appointment of Peon in the office of the District Child Protection unit, Valsad through outsource. (xix) No.Nabay/Outsource/Peon/2021 dated 23-4-2021 of the office of the Collector, Valsad regarding appointment of peons in the Additional Chitnis office, Valsad through outsource. (xx) No.Nabay/Outsource/Peon/2021 dated 19-4-2021 of the office of the Collector, Valsad regarding appointment of computer operator in the District Planning office, Valsad through outsource. (xxi) Letter No.Mahiti/Val/hisab/835/21 dated 23-4-2021 of the Deputy Information Director, Valsad regarding appointment of driver and sweeper in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xxxii) No. Election/Outsource Appointment/Vashi-/2021 dated 20-4-2021 of the Deputy District Election Officer, Valsad regarding appointment of Computer Operator and peons in the office of the District Election Division, Collector Office, Valsad through outsource. (xxxiii) No. EOC/Outsource Mahekam/Vashi/2021 dated 15-4-2021 of the Mamlatdar, Disaster Management Cell, Valsad regarding requirement of peon-cum-driver and sweeper at the Disaster Division office through outsource. (xxxiv) No. EST/AS/Vashi.343/2021 dated 27-4-2021 of the Mamlatdar, Umargam regarding appointment of Computer Operators, Peons, driver and sweeper in Mamlatdar office, Umargam through outsource. (xxxv) No. EST/Outsourcing/Vashi-21 dated 20-4-2021 of the Mamlatdar, Valsad regarding appointment of Computer Operators, peons, water bearer, sweepers in the Mamlatdar Office, Valsad through outsource. (xxxvi) No. EST/Outsource/Vashi-/2021 dated 19-5-2021 of the Mamlatdar, Kaprada regarding appointment of Computer Operators, peon and water bearer in his office through outsource. (xxxvii) No. Mahekam/Outsource/Vashi-146/2021 dated 28-4-2021 of the Mamlatdar, Vapi regarding appointment of Computer operators, p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x) No.JP/Saman/Vashi/481/2021 dated 4-5-2021 of the Deputy District Development Officer, Jilla Panchayat Valsad regarding requirement of peons in his office. (l) No.JP/Daban/Vashi 146/2021 dated 5-5-2021 of the Chitnis cum Taluka Development Officer (LE), Jilla Panchayat, Valsad regarding filling up vacancy of peon through outsource. (li) No.JP/SK/Peon/Vashi/93/2021 dated 30-4-2021 of the District Social Welfare Officer, Jilla Panchayat Office(S.K.Branch), Valsad regarding requirement of peon in his office through outsource. (lii) No.JP/Education/Mahekam/Vashi-5530/2021 dated 15-4-2021 of the District Primary Education Officer, Jilla Panchayat, Valsad regarding requirement of computer operator, peon and driver through outsource. (liii) No.JP/EC-1/Vashi/2064/2021 dated 7-5-2021 of the the Deputy District Development Officer(Panchayat), Valsad regarding requirement of peon through outsourcing. (liv) No.JP/ICDS/Makam/Vashi/526/2021 dated 17-5-2021 of the Program Officer, Integrated Child Development Scheme, JP, Valsad regarding appointment of peon in the ICDS office through outsource. (lv) No.DEO/Val/5683/2021 dated 12-5-2021 issued by the District Education Officer, Valsa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r office through outsourcing. (lxvii) O.No.28/2021 dated 17-4-2021 of the Junior Scientific Assistant, Land Survey Sub Division, Valsad regarding appointment of driver through outsourcing. (lxviii) No.O.DLV/ADM/1542/2021 dated 8-4-2021 of the Assistant Research Officer, District Laboratory (Gary), Valsad regarding requirement of data entry operator, servant and sweeper through outsourcing. (lxix) O.No.Vahat/Outsource/appointment/646/2021 dated 11-5-2021 of the Deputy Agriculture Director(Extension), Valsad regarding the appointment of driver and peons in their office through outsourcing. (lxx) O.No./MKN(LSL)/Outsource/21/2021 dated 19-4-2021 of the Assistant Agriculture Director (Land Scrutiny Laboratory), Pardi, Valsad regarding appointment of peon in their office through outsourcing. (lxxi) O.No.Bagat/DDH/2185/86/2021 dated 16-4-2021 issued by the Deputy Director of Horticulture, Valsad regarding appointment of computer operator and peon in their office through outsourcing. (lxxii) O.No.DDA/AK/Vashi 1708/2021 dated 24-6-2021 of the Deputy Director of Animal Husbandry, Jilla Panchayat, Valsad regarding requirement of data entry operator for their office through outsour ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rayo/Val/Hakad/Vashi-67/21 dated 20-4-2021 of the Sponsorship Administrator, Valsad regarding appointment of computer operators and peons in their office through outsourcing. (lxxxv) No.Van/Valas/Makam/446/2021 dated 26-4-2021 of the Electricity Inspector, Valsad regarding requirement of peon to their office through outsourcing. (lxxxvi) No.1031 2020/HGAY/Javim dated 10-5-2021 of the Deputy Executive Engineer, Gujarat Landless and Halpati Housing Board, Valsad. Regarding giving appointment of driver, computer operator and clerk to this office through outsourcing. (lxxxvii) No. Makam-2/2021-22/15 dated 11-5-2021 of the Superintendent of Fisheries, Madhuban, Valsad regarding appointment of watchman to this office through outsourcing. (lxxxviii) No.Makam/1/2/2020-21/21 dated 1-4-2021 and No.Makam/1/2/ 2020-21/244 dated 30-3-2021 of the Superintendent of Fisheries, Umargam, Valsad regarding requirement of peon, watchman and driver for their office through outsourcing. (lxxxix) No. O.No. /Outsource/1160/2020 dated 14-9-2020 of the Child Marriage Prohibition cum District Social Protection Officer, Chhotaudepur regarding appointment of Data Entry Operators at all Taluka Mamlatda ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of driver, peon and sweeper in his office through outsource. (ciii) No.RS/Makam/250 to 253/2021 dated 1-6-2021 of the Registration Inspector, Chhotaudepur regarding appointment of Class-4 peon in their office through outsourcing. (civ) No.Information-Chhota-Vahat.134/2020 dated 25-9-2020 of the Assistant Information Director, Chhotaudepur regarding requirement of peon and driver in their office through outsourcing. (cv) No.Information-Chhota-Vahat.130/2020 dated 17-9-2020 of the Assistant Information Director, Chhotaudepur regarding continuation of services of a driver and a peon appointed through outsourcing. (cvi) 2 Contracts issued by the Employment Officer(General), Chhotaudepur(in reference to Collector Office, Chhotaudepur's letter No,Makam/Vashi/2230 to 2269/2020 dt.14-8-20) regarding appointment of peons in their office through outsourcing. (cvii) No.EST/O.Appointment/2020 dated 16-9-2020 of the District Superintendent Land Office, Chhotaudepur regarding requirement of driver, peon cum water bearer and sweeper in their office through outsourcing. (cviii) No.O.S./2/K/935/2020-21 dated 14-9-2020 of the Deputy Forest Conservator, Chhotaudepur regarding requiremen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ointment of peon for their office through outsourcing. (cxxi) Letter O.No.Spo/CU/Education/Vashi/280 to 305/2020 dated 8-92020 of the Office of the Sponsorship Administrator, Chhotaudepur, Integrated Tribal Development Scheme, Chhotaudepur containing the approved rates for monthly remuneration of peon, sweeper, watchman, cook, liftman, gardener, pump operator, data entry operator and driver. (cxxii) No.Planning/Vahat/Vashi/349-51/2021 dated 26-4-2021 of the District Planning Unit, Chhotaudepur regarding granting of permission to the applicant to fill the vacancies of Special Project Associate cum consultant(SPAC) in the District Planning Office, Chhotaudepur through outsourcing. (cxxiii) No.Planning/Vahat/Vashi/346-48/2021 dated 26-4-2021 of the District Planning Unit, Chhotaudepur regarding granting of permission to the applicant to fill the vacancies of Special Project Associate cum consultant(SPAC) in the District Planning Office, Chhotaudepur through outsourcing. (cxxiv) No.Adm/Vashi/191/2020 dated 17-1-2020 of the Residential Additional Collector, Chhotaudepur regarding requirement of Technical Assistants and Multitasking Staff for their office through outsourcing. ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ffice through outsourcing. (cxl) Contract dated 16-7-2020 of the District Education Officer, Chhotauedpur regarding requirement of peon and security for their office through outsourcing. (cxli) Contract dated 5.5.2021 of the Executive Engineer, Pipeline Division No.1, Chhotaudepur regarding requirement of employees for their office through outsourcing. (cxlii) Contract dated 31-12-2020 of the Executive Engineer, Pipeline Division No.1, Chhotaudepur regarding requirement of driver cum peon for their office through outsourcing. (cxliii) Contract dated 18-6-2021 of the Executive Engineer, Bodeli regarding requirement of peon for their office through outsourcing. (cxliv) Contract dated 9-8-2021 of the Assistant Director of Libraries, Mandvi regarding requirement of computer operator, driver, peon and sweeper in their office through outsourcing. (cxlv) O.No.PD/Vashi/Outsource/ /2021 dated 30-5-2021 of Veterinary Officer of Veterinary Hospital, Valsad for appointment of peon at Animal treatment centre at Valsad through outsource. (cxlvi) 2 Contracts dated 1-4-2021 of the Veterinary Officer, Veterinary Hospital, Dharampur regarding appointment of driver and peons in their ho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d 28-6-2017 for pure services(supply of manpower, security service) provided to Central Government, State Government, Local 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. 9. Question on which Advance Ruling sought "Whether the applicant is liable to pay GST on man power services provided to the Central Government, State Government, Local Authorities, Governmental Authorities and Government Entities?" Personal Hearing 10. Shri Abhishek Khatri, C.A. appeared for the hearing (Video Conferencing) on 27-7-2021 and reiterated the contents of the application. 11. At the outset we would like to make it clear that the provisions of CGST Act and GGST Act are in pari materia and have the same provisions in like matter and differ from each other only on a few specific provisions. Therefore, unless a mention is particularly made to such dissimilar provisions, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the following services: i. Security service. ii. Cleaning or house-keeping services performed in such educational institutions. iii. catering/mid-day meal scheme sponsored by the Government. 14.2 We note that the following Service recipients are covered under the said entry 66(b): (i) Girls Literacy Residential School, Karchond, Dharampur, Valsad: We hold that services performed by the peon and sweeper are covered under housekeeping and cleaning services respectively. (ii) Government Secondary Schools of Chhotaudepur district: We hold that services performed by the peon and sweeper are covered under housekeeping and cleaning services respectively; and the services of security guard are covered under the security services. (iii) Model School, Naswadi, Chhotaudepur: We hold that the services performed by the security guard is covered under the security services. 14.3 Further we hold that the said entry 66(b) of Notification 12/2017-CT(R) is the relevant GST exemption entry to the aforementioned mentioned (i) to (iii) recipients. 14.4 We find that the applicant holds Government Schools (and also Government Colleges, offices and hospitals) as Government and cites s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lowing contracts pertain to hospitals: (i) Manpower supply of services of peon supplied to the Veterinary Hospital, Valsad. (ii) Manpower supply of services of driver and peons supplied to the Veterinary Hospital, Dharampur. (iii) Manpower supply of services of laboratory technicians, laboratory assistants, data entry operators, watchmen and sweepers to General Hospital, Chhotaudepur. We hold that the subject service provided to Hospitals, aforementioned mentioned above (i) to (iii) is not covered at entry No. 46 & 74 of the said Notification. 17. Government Offices as Service Recipient. i. As we find specific entry for specific services provided to schools, as per entry 66(b) to Notification 12/2017-CT(R), and thereby such services provided to schools are exempted from GST; we find no Notification exempting services provided to/in Government Offices. ii. Further, we do not find merit in applicant's contention that services provided to Government Offices are to be equated as services provided in relation to Panchayat/ Municipality functions. If such a meaning is to be arrived for any services provided to Government offices be exempt from GST, then, that would mean that ea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nstitution or in relation to any function entrusted to a Municipality under article 243W of the Constitution. Pure services........in relation to Panchayat/ Municipality functions 12 (for illustration purpose) Services by way of renting of residential dwelling for use as residence' Renting of residential dwelling services 18 (for illustration purpose) Services by way of transportation of goods Transportation of goods service 18. The Computer Operators, Peons, Sweepers, Drivers services are utilised in the Government Offices. They work in the office during office hours/ extra office hours as per requirement. To detail further, Peons move files, handle the work of Xerox, arranges for food and water for the employees as required, operate the lift, AC machines, mikes, fax machines as and when required and during meetings it will be their responsibility to switch off the mikes, AC machines, fans, lights etc. after the end of such meetings. Drivers will be required to keep the vehicles clean and in ready to travel condition. Besides, the watchman, gardener, cooks, sweeper, water bearer are all providing services within the offices/hospitals/institutions in which they are servi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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