GST
TRT-2025-
AAR Karnataka
Date:-12-08-22
In:-
Issue Favourable to Tax Payer ?:- 0
Order Date: 12 August 2022
Facts-
- The Applicant, Indian Security and Personnel Arrangements is a Proprietorship engaged in providing manpower services. They are proposing to submit a bid in response to the tender floated by the Department of Horticulture, Government of Karnataka for certain services.
- The applicant submitted their proposed activities that is, cleaning and sweeping of lawns and garden path areas, segregation and transport of the garbage and supply of manpower for garden maintenance.
- The applicant submitted that the Department of Horticulture would fall within the definition of “Government” for the purposes of GST and as such, pure service received by it would be exempt under Entry No. 3 of Notification No.12 of 2017 (Central Tax Rate).
Issue-
- Whether the services proposed to be provided by it to the Department of Horticulture is exempted?
Order-
- The Authorities observed that the applicant is providing manpower services for cleaning and sweeping of lawns and garden path areas, segregation and transport of the garbage in Cubbon Park and for maintenance of gardens in Siri Horticulture Garden, Ooty, Tamilnadu. This is in relation to function entrusted to a municipality under article 243W of the constitution which is covered by 12th entry of twelfth schedule which says 'Provision of urban amenities and facilities such as parks, gardens, playgrounds'. This manpower services are provided to the Horticulture Department, Government of Karnataka.
- The Applicant is providing services to the state government which is covered by 12th entry of twelfth schedule of the constitution which says 'Provision of urban amenities and facilities such as parks, gardens, playgrounds'.
- Thus, the applicant satisfies the conditions mentioned to claim exemption under Entry No. 3 of Notification No.12 of 2017 (Central Tax Rate), dated: 28.06.2017.
- The Authorities held that the services proposed to be provided by the Applicant to the Department of Horticulture for cleaning and sweeping of lawns and garden path areas and segregation and transport of the garbage and for supply of manpower for garden maintenance on outsource basis to the Department of Horticulture are liable for GST at NIL rate as per Entry No. 3 of Notification No.12 of 2017 (Central Tax Rate), dated: 28.06.2017.
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