TMI Blog2021 (10) TMI 366X X X X Extracts X X X X X X X X Extracts X X X X ..... s purview Colleges providing education above higher secondary schooling. With no specific exemption for the services provided to these educational institutions, services provided to the following recipients categorised under Government colleges, by the applicant are taxable. Government Hospitals as service recipient - HELD THAT:- Entries 46 and 74 of N/N. 12/2017-Central Tax(Rate) dated 28-6-2017 covers services provided by veterinary clinics/clinical establishments i.e. hospitals. However, the scope of GST exemption available at above said two entries (46 74) does not cover supply of services provided to veterinary clinics/clinical establishments - the subject service provided to Hospitals, is not covered at entry No. 46 74 of the said Notification. Government Offices as Service Recipient - HELD THAT:- If Government framed a specific entry (entry 66(b) of NT 12/2017-CT(R)) exempting certain services provided to/in educational institutions, then Government would also have had a specific entry exempting services provided to/in Government offices, if that was the intention of the Government. Now that there are no such specific entry, it would not be the correct interpre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3W 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 exemption entry can be summarised for taking benefit of the said exemption as follows: 1. Pure services are provided. 2. Service recipient is either Central Government or State Government or Local Authority or Governmental Authority or a Governmental Entity and 3. Such services are provided to the specified recipient to perform function as mentioned under Article 243G or under Article 243W of the Constitution. (iii) The definition of Pure service has not been given anywhere so the term should be construed in general meaning as Pure Service which means any supply for consideration in which goods are not supplied along with services to constru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd 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. (v) The applicant is of the view that exemption mentioned in Notification No.12/2017-Central Tax (Rate) and Notification No.12/2017-State Tax (Rate) shall be available to the services they are providing to Central Government, State Government, Local Authority, Governmental Entity, Governmental Authority and GST shall be l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ces 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 Officer-Chhota Udepur-State Government. 22. Deputy Director Agriculture-Chhota Udepur and its offices-State Government. 23. Model School-Naswadi(GSTES) -Government Authority/Entity. 24. Water Resource Development Department, Chhota Udepur and its offices State ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndia 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 services that results in performance of the functions as mentioned in Article 243W of the Constitution of India either directly or indirectly. Even the services provided for enabling the organization to perform defined functions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent 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 the District Employment Exchange Office, Valsad. (viii) No. WCO/Val/Outsource/781/2021-22 dated 10-5-2021 of the Woman and Child Officer, Valsad and Resolution No. Vahat. 312019/958/A date ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lsad 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 the District Information office, Valsad through outsource. (xxii) Random note issued to the Mahekam Branch, Collector Office, Valsad vide F.No.DCB ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... egarding 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, peons, drivers and sweeper in his office through outsource. (xxxviii) No. EST/Outsource/Vashi 217/20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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, Valsad regarding appointment of peon and driver in thei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 outsou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ough outsourcing. (lxxxiv) No./Prayo/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 appoin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ract issued by the Deputy Agriculture Director(Training), Chhotaudepur regarding requirement 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tsourcing. (cxx) O.No.ISD No.2/SK/Year 2021 dated 18-6-2021 of the Executive Engineer, Irrigation Scheme Division No.2, Bodeli regarding appointment 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... omputer operator, peon, driver, sweeper and security through outsourcing. (cxxxix) No.Makam/Vashi/692 to 695/2020 dated 31-8-2020 of Mamlatdar, Naswadi regarding requirement of employees in their office 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 appo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he applicant. 8. The applicant submits that it provides manpower supply services to several Government authorities/entities and that the applicant is eligible to claim exemption benefit under Sr.No.3 of Notification No.12/2017-Central Tax(Rate) dated 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 lik ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned in sub-item (v) of item (b) shall apply to an institution providing services by way of,- (i) pre-school education and education up to higher secondary school or equivalent; or (ii) education as a part of an approved vocational education course. ; Nil Nil 14.1 With reference to Schools, providing services by way of preschool education and education up to higher secondary school or equivalent, we find that vide said entry 66(b) to said Notification, services provided to them are exempted from GST, for 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 swee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Services by a veterinary clinic in relation to health care of animals or birds. NIL NIL 74. Heading 9993 Services by way of- (a) health care services by a clinical establishment, an authorised medical practitioner or para-medics; (b) services provided by way of transportation of a patient in an ambulance, other than those specified in (a) above. NIL NIL We find that the aforementioned entries covers services provided by veterinary clinics/clinical establishments i.e. hospitals. However, the scope of GST exemption available at above said two entries (46 74) does not cover supply of services provided to veterinary clinics/clinical establishments. From the study of all the copies of various contracts /work orders submitted by the applicant, we find that the following 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g in the Notification services by way of an activity in relation to Panchayat/ Municipality Function will have to read as services in relation to a panchayat/ municipality function . This is the plain way of reading these wordings of the cited entry of the Notification. To illustrate, at sr no 12 of said Notification, we have the wordings, Services by way of renting of residential dwelling for use as residence , for which the plain meaning is Renting of residential dwelling services . Further at sr no 18 of the said Notification, we read the wordings as, Services by way of transportation of goods for which the plain meaning is Transportation of goods service . We have winnowed the plain meaning of the words, as follows: Entry no of Notification 12/2017-CT(R ) Wordings of the Notification Plain meaning 3 Pure services .. 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. Pure services ..i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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