Order Date – 29 March 2023

Facts –

• The Applicant, M/s. Sankalp Facilities and Management Services Pvt, Ltd., is engaged in the business of providing manpower supply for housekeeping. cleaning. security. data entry operator etc.
• The appellant submitted that it provides manpower supply services to several Government authorities/ entities and that the appellant is eligible to claim ex benefit under Sr.No.3 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017.

Issue –

• Whether the applicant is liable to pay GST on manpower supply services provided to Government authorities?

Order –

• The AAAR observed that the words "or a Governmental authority or a Government Entity” in the heading Description of services against Entry No.3 has been omitted vide Notification No. 16/2021-Central Tax (Rate) dated 18.11.2021.
• The term 'in relation to' used in the exemption provided at Entry No.3 of Notification No. 12/
• 2017-CT (Rate) dated 28.06.2017, as amended, is very much wide enough to cover every kind of services that results in performance of the functions as mentioned in Article 243W and 243G of the Constitution of India either directly or indirectly.
• Even though the appellant is providing services to the Government offices concerned, but they are in no way related to the function entrusted to a Panchayat under article 243G of the Constitution or function entrusted to a Municipality under article 243 W of the Constitution which is carried out by the Government concerned.
• Hence, it was held that the manpower supply by the appellant for housekeeping, cleaning. security, data entry operators etc. to various Government departments. mentioned in their application is not eligible for exemption against Entry No. 3 to Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 as amended.

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