2019 (1) TMI 1490 – AUTHORITY FOR ADVANCE RULING, WEST BENGAL – TMI – Exemption from GST – deployment of personnel like a plumber, sweeper, security guard, electrician, carpenter etc. (Sweeping service) to the West Bengal Housing Board – bundled services – Benefit of N/N. 12/2017-CT (Rate) dated 28.06.2017 and WB Govt Gazette Notification-1136-FT dated 28.06.2017 – Held that:- From the Tender Notice of the Housing Directorate issued under their office memo no. 342/2E – 28 dated 13/03/2018 it appears that the Housing Directorate invites quotation for deployment of personnel at the RHEs under the Directorate for several services, including ‘Sweeping Service’. The job description of a sweeper mentioned therein includes sweeping of the compound and common staircase and corridors of all floors of the buildings in the Housing Estate, cutting of jungles and bushes, cleaning and disposal of garbage, cleaning of the roof, surface drain cleaning, pit cleaning of sewerage system etc. – It is, th
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ctorate of the Government of West Bengal, cannot be classified as an 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.
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The exemption under Sl No. 3 or 3A, as the case may be, of Notification No 12/2017-CT (Rate) dated 28.06.2017 and WB Govt Gazette Notification-1136-FT dated 28.06.2017 is not, therefore, applicable to such supplies. – Case No. 40 of 2018 and Order number 37/WBAAR/2018-19 Dated:- 28-1-2019 – SYDNEY D SILVA AND PARTHASARATHI DEY, MEMBER Applicant s representative: Ms Vinita Chandak, CA 1. The Applicant, stated to be a service provider by the deployment of personnel like a plumber, sweeper, security guard, electrician, carpenter etc. to the West Bengal Housing Board, seeks a ruling as to whether sweeping service to the said Board is exempt from payment of GST in terms of Notification No 12/2017-CT (Rate) dated 28.06.
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ping etc. According to the work order issued on 16/07/2018, the Applicant was required to charge GST on the entire bill, including sweeping service. The Directorate, however, has since raised an objection on GST being charged on sweeping service, which, in their opinion, is part of sanitation service listed under the Eleventh Schedule of the Constitution and, therefore, eligible for exemption under Sl. No. 3 of the Exemption Notification. The discussion in this ruling will, therefore, be restricted to the sweeping services that the Applicant provides to the Housing Directorate. 3. The concerned officer from the revenue submits that the above exemption is applicable to the government or local authority. The Board is neither Government nor Local Authority, but a statutory body created by the West Bengal Housing Board Act, 1972. The above exemption is, therefore, not applicable for supplies to the Board. Furthermore, sweeping is a composite supply and exemption under Sl No. 3 of the Exemp
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ation. They cover the supply of certain services to the government, local authority, governmental authority, or government entity. The service should be an activity in relation to any function entrusted to a Panchayat under Art 243G of the Constitution or to a Municipality under Art 243W of the Constitution. In its Circular No. 51/25/2018-GST dated 31/07/2018 the Central Government clarifies that the service tax exemption at serial No. 25(a) of Notification No. 25/2012 dated 20/06/2012 (hereinafter the ST Notification) has been substantially, although not in the same form, continued under GST vide Sl No. 3 and 3A of the Exemption Notification. Sl No. 25(a) of the ST notification under the service tax exempts services provided to the Government, a local authority or a governmental authority by way of water supply, public health, sanitation, conservancy, solid waste management or slum improvement and upgradation. The Circular further explains in relation to the specific issue of ambulanc
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s providing. While examining whether ambulance service supplied to the Government is eligible for the exemption, the Circular does not go on to explore whether the recipient of the service is engaged in an activity listed under the Eleventh or the Twelfth Schedules and whether the ambulance service is being supplied in relation to any such activity. It simply focuses on the nature of the service itself (ie. The ambulance service) and examines whether its classification relates to an activity listed under the schedules referred to above. 5. It now needs to be examined whether the Applicant s supply of Sweeping Service comes under the ambit of the exemption under Sl. No. 3A of the Exemption Notification in terms of an activity in relation to any function entrusted to a Panchayat under Art 243G of the Constitution or to a Municipality under Art 243W of the Constitution. Article 243G of the Constitution discusses the powers, authority and responsibilities of Panchayats, stating that Subjec
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ved 8 Minor forest produce 9 Safe water for drinking 10 Khadi, village and cottage industries 11 Rural housing 12 Fuel and fodder 13 Rural electrification, including distribution of electricity 14 Road, culverts, bridges, ferries, waterways and other means of communication 15 Education including primary and secondary schools 16 Non-conventional sources of energy 17 Technical training and vocational education 18 Adult and non-formal education 19 Public distribution system 20 Maintenance of community assets 21 Welfare of the weaker sections of the in particular of the schedule caste and schedule tribes 22 Social welfare, including welfare of the handicapped and mentally retarded 23 Family welfare 24 Women and child development 25 Markets and Fairs 26 Health and sanitation including hospitals, primary health centres and dispensaries 27 Cultural activities 28 Libraries 29 Poverty Alleviation Programmes Article 243W of the Constitution discusses the powers, authority and responsibilities of
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ecological aspects 11 Construction of roads and bridges 12 Provision of urban amenities and facilities such as parks, gardens and playgrounds 13 Promotion of cultural, educational and aesthetic aspects 14 Burials and burials grounds, cremation and cremation grounds and electric crematoriums 15 Cattle ponds, prevention of cruelty to animals 16 Regulation of slaughter houses and tanneries 17 Public amenities including street lighting, parking spaces, bus stops and public conveniences 18 Vital statistics including registration of births and deaths 6. From the Tender Notice of the Housing Directorate issued under their office memo no. 342/2E – 28 dated 13/03/2018 it appears that the Housing Directorate invites quotation for deployment of personnel at the RHEs under the Directorate for several services, including Sweeping Service . The job description of a sweeper mentioned therein includes sweeping of the compound and common staircase and corridors of all floors of the buildings in the Ho
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