TMI Blog2021 (11) TMI 432X X X X Extracts X X X X X X X X Extracts X X X X ..... rises, 512, 2nd, C Main, 11th Block, Nagarabhavi, Bangalore-560072 having GSTIN 29ADIPK7762Q1ZJ have filed an application for Advance Ruling under Section 97 of CGST Act, 2017 read with Rule 104 of CGST Rules, 2017 and Section 97 of KGST Act, 2017 read with Rule 104 of KGST Rules, 2017, in FORM GST ARA-01 discharging the fee of ₹ 5,000/- each under the CGST Act and the KGST Act. 2. The Applicant is a Proprietorship concern registered under the provisions of Central Goods and Services Tax Act, 2017 as well as Karnataka Goods and Services Tax Act, 2017 (hereinafter referred to as the CGST Act and KGST/SGST Act respectively). The applicant is engaged in the business of providing manpower supply to various government and non-governmental organisations. 3. The applicant has sought advance ruling in respect of the following questions: 1. Whether the applicant is correct in classifying the services provided to the Government entities as exempted services? 2. Whether the applicant is correct in claiming exemption under Sl.No.3 of Notification 12/2017 dated 28th June 2017 for the said exempted services? 4. Admissibility of the application: The question is about c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rnment Agencies are covered in list of functions rendered by Panchayat / Municipality under article 243G and 243W of the Constitution. Thus, the said service is eligible for exemption under Sl.No.3 of Notification 12/2017. 6. Applicant s Interpretation of Law: 6.1 The applicant has relied on AAR order passed by Gujarat in case of M/s A.B. Enterprises which pertains to the same issue. 6.2 The applicant has reproduced entry at Sl.No.3 in the notification No. 12/2017 dated 28th June 2017 as under: Sl.No. Chapter, Section, Heading, Group or Service Code (Tariff) 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 entr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Small scale industries, including food processing industries. 9. Khadi, village and cottage industries. 10. Rural housing. 11. Drinking water. 12. Fuel and fodder. 13. Roads, culverts, bridges, ferries, waterways and other means of communication. 14. Rural electrification, including distribution of electricity. 15. Non-conventional energy sources. 16. Poverty alleviation programme. 17. Education, including primary and secondary schools. 18. Technical training and vocational education. 19. Adult and non formal education. 20. Libraries. 21. Cultural activities. 22. Markets and fairs. 23. Health and sanitation, including hospitals, primary health centres 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. Following functions are entrusted to Municipalities under Article 243W: 1. Urban planning including ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ences is a unit of Raman Research Institute which is an institute of scientific research located in Bangalore and funded and controlled by Government of India Education, including primary and secondary schools under 243G National Dairy Research Institute NDRI was brought under Indian Council of Agricultural Research (ICAR) since 1970. The current president of ICAR is the Hon ble Minister of Agriculture and NDRI is a constitutional body and thus a Government entity. Education, including primary and secondary schools under 243G National Institute of Oceanography NIO is established by Council of Scientific and Industrial Research of Government of India. Fully funded and controlled by the Indian Government. Education including primary and secondary schools under 243G National Institute of Technology Goa The National Institutes of Technology (NITs) are the premier autonomous public technical universities under the jurisdiction of Ministry of Education, Government of India. Education, including primary and secondary ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he applicant in their application for advance ruling. We have also considered the issues involved on which advance ruling is sought by the applicant and the relevant facts along with the arguments made by the applicant and also their submissions made by their learned representative during the time of hearing. 10. The applicant is engaged in supply of Manpower services to various organisations/institutions like Indian Institute of Astrophysics, Indian Academy of Sciences, National Dairy Research Institute, National Institute of Oceanography, National Institute of Technology Goa, Raman Research Institute, SJB College of nursing, Central University of Karnataka, National Assessment and Accreditation Council, National Institute of Fashion Technology and BGS Global Institute of Medical Science. The manpower supplied by the applicant is in the nature of security guards, housekeeping staff and catering staff. 11. The applicant claims that he is supplying manpower services to various government and non-government organisations and the services rendered by the applicant are pure services to the government agencies and hence eligible for exemption as per Sl.No. 3 of Notification No.12/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on to examine whether the applicant satisfies the second condition mentioned at para 13 supra. 243G- Powers, authority and responsibilities of Panchayats subject to the provisions of this Constitution the Legislature of a State may, by law, endow the Panchayats with such powers and authority and 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 Panchayats, at the appropriate level, subject to such conditions as may be specified therein, with respect to (a) The preparation of plans for economic development and social justice; (b) The implementation of schemes for economic development and social justice as may be entrusted to them including those in relation to the matters listed in the Eleventh Schedule. Matters listed in Eleventh schedule are: 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. Animal husbandry, dairying and poultry. 5. Fisheries. 6. Social ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. 16. The applicant is providing manpower services like security guards, housekeeping staff and catering staff. But these manpower services are not provided 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. Hence provision of such manpower services are liable to tax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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