In Re: M/s. EX-SERVICEMEN RESETTLEMENT SOCIETY
GST
2019 (1) TMI 1491 – AUTHORITY FOR ADVANCE RULING, WEST BENGAL – 2019 (21) G. S. T. L. 279 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING, WEST BENGAL – AAR
Dated:- 28-1-2019
Case No. 34 of 2018 Order No. 38/WBAAR/2018-19
GST
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 ref
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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 fun
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ation) 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. Unde
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its classification 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 reci
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ural expansion
2
Land improvement, 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
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ose in relation to the matters listed in the Twelfth Schedule”.
List of 18 items covered under the Twelfth Schedule of the Indian Constitution are as follows;
1
Regulation of land use and construction of land buildings
2
Urban planning including the 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 aesth
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s 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”.
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 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
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