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TMI Blog2021 (11) TMI 432X X X X Extracts X X X X X X X X Extracts X X X X ..... ss 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 "classification of any goods or services or both" and "applicability of a notification issued under the provisions of this Act" and hence is admissible under Section 97(2)(a) and 97(2)(b) of the CGST Act 2017. 5. Brief Facts Of The Case: The applicant furnishes some facts relevant to the issue: 5.1 The Applicant states that they are engaged in the business of providing manpower supply services to various government and non-government organisations. Manpower supply services include supply of workforce of both skilled and unskilled for security, housekeeping, catering etc. Majority of the services are rendered to Central / State Government and public sector undertakings like ISRO, Ce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... em under Article 243G and 243W as under: 6.3.1 Pure Service: The phrase "pure service" has not been specifically defined in any of the notifications / circulars. However, in common parlance, "pure services" in this context would intend to cover all the contracts where there is no supply of goods i.e., to say any supply which is either deemed as services under Schedule II of CGST Act or which are not covered under the definition of goods shall be categorized as pure services. The applicant states that they are providing "security and house-keeping services" to the customers cited at para 5.2 supra. The said supply is not covered under the definition of goods. 6.3.2 Governmental Authority: Governmental Authority has been defined in Notification No.32/2017-CT (R) dated 13.10.2017 as: (zf) "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 percent or more participation by way of equity or control, to carry out any function entrusted to a Municipality under article 243W of the Constitution or to a Panchayat under article 243G of the Constitution." ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. 6.4 The applicant has also stated about the entities to which the applicant provides the service and corresponding grounds on which such services are exempt and the same is listed as under: Service Receiver Grounds on which it is a Government Entity/Authority. Clause under Article 243G/243W BGS Global Institute of Medical Science The entity is a unit of Rajiv Gandhi University of Health Sciences, centered in Bangalore which is a public, affiliating university set up i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ablished in 1994 as an autonomous institution of the University Grants Commission (UGC) under the National Policy on Education (NPE, 1986) and the Programme of Action (PoA, 1992) which is fully controlled by Ministry of Education, Government of India. Education, including primary and secondary schools under 243G National Institute of Fashion Technology NIFT was set up in 1986 and was made a statutory institute in 2006 by an Act of the Indian Parliament. Hence, the same is fully funded Government entity. Education, including primary and secondary schools under 2430 PERSONAL HEARING / PROCEEDINGS HELD ON 07-10-2021 7. Shri Sudarshan B.N, Chartered Accountant & Duly Authorised Representative of the applicant appeared for personal hearing proceedings held on 07-10-2021 and reiterated the facts narrated in their application. FINDINGS & DISCUSSION 8. At the outset we would like to make it clear that the provisions of CGST Act, 2017 and the KGST Act, 2017 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, a reference to the CGST ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be satisfied: 1. 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 or a Government entity 2. 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." Now we examine one by one. The Applicant states that he is providing manpower services to various organisations/institutions which he claims to be either Governmental authority or Government entity. But the applicant has not submitted any supporting documents to prove the same. If the organisations/institutions to which the applicant is supplying manpower services qualify to be 'a Governmental Authority' or 'a Government Entity' as per the definitions at (A) and (zfa) respectively of the Notification No.12/2017- Central Tax (Rate) dated 28.06.2017, as amended then the first condition will be satisfied. 14. Now we move on to examine whether the applicant satisfies the second condition mentioned at para 13 supra. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essary 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. 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. P ..... X X X X Extracts X X X X X X X X Extracts X X X X
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