In Re: M/s. NIS Management Ltd.
GST
2019 (1) TMI 1490 – AUTHORITY FOR ADVANCE RULING, WEST BENGAL – 2019 (21) G. S. T. L. 275 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING, WEST BENGAL – AAR
Dated:- 28-1-2019
Case No. 40 of 2018 and Order number 37/WBAAR/2018-19
GST
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 28.06.2017 and WB Govt Gazette Notification-1136-FT dated 28.06.2017 (hereinafter collectively referred to as the “Exemption Notification”). An advance ruling is admissible on the question under Section 97(2)(b) and (e ) of the CGST/WBGST Acts, 2017 (hereinafter collectively referred
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
s 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 Exemption Notification is not applicable to anything other than pure services. The submission of the concerned officer is based on what the Applicant discloses in the Application. The documents that he submits at the time of Hearing, however, clarifies that the supply is being
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ty 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 ambulance service to the Government by a private service provider (PSP) that such service is a function of 'public health' entrusted to Municipalities under Art 243W of the Constitution, and, therefore, eligible for exemption under Sl No. 3/3A of the Exemption Notification.
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ules 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 “Subject to the provisions of this Constitution the Legislature of a State may, by law, endow the Panchayats with such powers and authority and may be necessary to enable them to function as institutions of self government ……. subject to such conditions as may
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
s 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 Municipalities, etc stating that “Subject to the provisions of this Constitution, the Legislature of a State may, by law, endow,…….b) the Committees with such powers and authority as may be n
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ilities 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 Housing Estate, cutting of jungles and bus
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =