2019 (1) TMI 1491 – AUTHORITY FOR ADVANCE RULING, WEST BENGAL – TMI – Exemption from GST – classification of services – Security Services and Scavenging Services to various hospitals under the State Government as well as the Central Government – N/N. 12/2017-CT(Rate) dated 28.06.2017 and WB Govt Gazette Notification-1136-FT dated 28.06.2017, as amended – Bundling of services – Held that:- The services provided under the head “Scavenging Services”, according to the Applicant’s submission, includes manual cleaning, duties of attendant or operator of trolleys – Article 243G under Serial No 26 covers “Health and sanitation, including hospitals, primary health centres and dispensaries” – Article 243W under Serial No 7 covers “Public health sanitation, conservancy and solid waste management”.
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No other entries in the Eleventh or the Twelfth Schedules of the Constitution appear relevant while examining applicability of the Applicant’s services bundled as ‘Scavenging Services’. ‘Health C
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under Notification No 12/2017-CT(Rate) dated 28.06.2017 and WB Govt Gazette Notification-1136FT dated 28.06.2017, as amended, for the supply of Security Services and the bundle of service that he describes as ‘Scavenging Services’. – Case No. 34 of 2018 Order No. 38/WBAAR/2018-19 Dated:- 28-1-2019 – SYDNEY D SILVA AND PARTHASARATHI DEY, MEMBER Applicant s representative: Major Nirmal Kumar Dhaoa (Retd), President 1. The Applicant, stated to be a registered society providing Security Services and Scavenging Services to various hospitals under the State Government as well as the Central Government, seeks a ruling as to whether exemption from payment of GST is available to them in terms of Notification No 12/2017-CT(Rate) dated 28.06.2017 and WB Govt Gazette Notification-1136-FT dated 28.06.2017, as amended (hereinafter collectively referred to as the Exemption Notification ). Advance Ruling is admissible on the question under Section 97(2)(b) of the CGST/WBGST Acts, 2017 (hereinafter r
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addition to Security Personnel. The nature of activities performed by the Scavenging Personnel comprise of:- a) Manual cleaning where required; b) Duties of attendants viz. bringing of Medicine/Oxygen Cylinders from a particular store to different wards; c) Operating trolleys for the carriage of patients from the Emergency Ward to different wards, or from the Wards to the different laboratories for different tests, like blood tests, x-rays, scans, etc. They have also declared that for the functions of the above categories, no materials/equipments are supplied by them. 3. A careful read of conditions laid down under the Exemption Notification makes it clear that exemption from GST is granted under Serial No 3 to the Pure services (excluding works contract service or other composite supplies involving supply of any goods) provided to the Central Government, State Government or Union territory or local authority or a Governmental authority by way of any activity in relation to any functio
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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. The above Circular leaves no doubt that the phrase in relation to any function , as applied in Sl Nos. 3 and 3A above, makes no substantial difference between Sl No. 25(a) of the ST Notification and Sl No. 3/3A of the Exemption Notification. Under the previous
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on relates to an activity listed under the schedules referred to above. The Applicant s eligibility under Sl No. 3 or 3A of the Exemption Notification should, therefore, be examined from three aspects: (1) whether the service being supplied is pure service or composite supply, (2) whether the recipient is government, local authority, governmental authority or government entity, and (3) whether the services provided are classifiable as a function entrusted to a Panchayat or a Municipality under the Constitution. 6. Pure service is not defined in the GST Act. However, it appears from the context that services involving no supply of goods are considered as pure service. The Applicant claims he is not supplying any goods while provisioning the services. The Applicant s services are, therefore, classifiable as pure service. The supplies are made, according to the Application, to hospitals owned or managed by the government. It is, therefore, obvious that the recipient is government or gover
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ent, implementation of land reforms, land consolidation and soil conservation 3 Animal Husbandry, Dairying and poultry 4 Fisheries Industry 5 Minor irrigation, water management and watershed development 6 Social forestry and farm forestry 7 Small scale industries in which food processing industry is involved 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 Famil
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e town planning 3 Planning for economic and social development 4 Urban poverty alleviation 5 Water supply for domestic, industrial and commercial purposes 6 Fire services 7 Public health sanitation, conservancy and solid waste management 8 Slum improvement and up-gradation 9 Safeguarding the interests of the weaker sections of society, including the physically handicapped and mentally unsound 10 Urban forestry, protection of environment and promotion of 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 an
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ning applicability of the Applicant s services bundled as Scavenging Services . Health Care Service is defined under clause 2(zg) of the Exemption Notification. It means inter alia any service by way of diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognized system of medicine in India and includes services by way of transportation of patient to and from a clinical establishment. It is classified under SAC 99931. It does not include any of the services the Applicant bundled under the description Scavenging Services . Again, Sanitation and similar services are classified under SAC 99945. It includes sweeping and cleaning, but only with reference cleaning of a road or street. Cleaning of hospital premises is not, therefore, classified under Sanitation or similar service . The services the Applicant bundled under the description Scavenging Services are, therefore, not exempt under Sl No. 3 of the Exemption Notification. In view of the fore
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