GST
TRT-2025-
AAR Karnataka
Date:-23-01-23
In:-
Issue Favourable to Tax Payer ?:-
Order Date – 23 January 2023
Facts –
- The Applicant, M/s. Sanjeevini Enterprises, 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, production of mushroom and also for cleaning of offices.
Issue –
- Whether providing manpower supply for tissue culture production and for handling the process of research on flowers, planting and growing process attracts GST?
Order –
- The AAR held 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.
- There is no specific exemption for supply of materials like fertilisers, soil and sand for use of bio centers as per notification No.2/2017-Central Tax (Rate), dated 28.06.2017.
- Hence, Works contract service provided to Bio Centers, Department of Horticulture and Center of excellence are not exempted from GST. Providing Manpower service like data entry operator, security to Horticulture Department is exigible to GST at 18%( CGST @ 9% and KGST@9%). Materials like fertilisers, soil and sand supplied for use of bio centers are not exempted under GST.
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