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TMI Blog2023 (1) TMI 1162X X X X Extracts X X X X X X X X Extracts X X X X ..... h 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 Rs.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 states that they are bidding for a tender called by Department of Horticulture which includes the supply of manpower for Bio-Centre, Department of Horticulture, Centre of Excellence for Floriculture, Tunga Horticulture Farm, Shivamogga, for maintenance of plants, tissue culture, product ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wing process and maintenance under guidance of agriculture officer including cleaning and maintenance of equipment used and handling of wastage. PERSONAL HEARING / PROCEEDINGS HELD ON 29.09.2022 6. Shri Siddeshwar, Proprietor and Shri Girish, Manager, appeared for personal hearing proceedings held on 29.09.2022 through video conference and reiterated the facts narrated in their application. FINDINGS & DISCUSSION 7. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vice as per Notification No. 12/2017-Central Tax (Rate), dated 28.06.2017. 11.1 The Applicant wants to know whether providing manpower supply for tissue culture production and for handling the process of research on flowers, planting and growing process attracts GST. Now we invite reference to entry no.3 of the Notification No. 12/2017- Central Tax (Rate) dated 28.06.2017 which 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 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t 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 forestry and farm forestry. 7. Minor forest produce. 8. Small scale industries, inclu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 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. Sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d labour upon land..." 11.6 In view of the above we observe that, tissue culture is not same as agriculture and there is no direct nexus to the items mentioned in eleventh or twelfth schedule of the constitution. Thus supply of manpower for tissue culture production and for handling the process of research on flowers, planting and growing to Horticulture department, Government of Karnataka 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 at 18% (9% CGST and 9% KGST). 12. The Applicant wants to know wh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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