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2019 (1) TMI 1490 - AAR - GSTExemption 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, therefore, a bundle of activities that are classifiable under SAC 99853 as cleaning service . It may be eligible for the above exemption if it also qualifies as a service for public health sanitation, being an activity under Sl No. 7 (public health sanitation, conservancy and solid waste management) of the Twelfth Schedule to the Constitution. Sanitation and similar services are classified under SAC 99945. It includes sweeping and cleaning, but only with reference cleaning of a road or street. Sweeping of premises public or residential is not classified under Sanitation or similar service , Sweeping service that the Applicant supplies to the Housing Directorate cannot, therefore, 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. Ruling - Sweeping Service that the Applicant supplies to the Housing Directorate 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. 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.
Issues Involved:
1. Whether the sweeping service provided by the Applicant to the West Bengal Housing Board is exempt from GST under Notification No 12/2017-CT (Rate) dated 28.06.2017 and WB Govt Gazette Notification-1136-FT dated 28.06.2017. 2. Classification of the sweeping service under the relevant SAC (Service Accounting Code). 3. Applicability of the exemption under Sl No. 3 or 3A of the Exemption Notification. Detailed Analysis: 1. Exemption from GST: The Applicant sought an advance ruling on whether the sweeping service provided to the West Bengal Housing Board is exempt from GST under the Exemption Notification. The ruling is admissible under Section 97(2)(b) and (e) of the CGST/WBGST Acts, 2017. The Applicant clarified that the question is not pending before any authority under the GST Act, and the revenue officer raised no objection to the admission of the Application. 2. Specificity to Sweeping Services: The ruling focused on the sweeping services provided to the Housing Directorate of the Government of West Bengal. The Directorate awarded the Applicant a contract for various services, including sweeping, and required GST to be charged on the entire bill. The Directorate objected, claiming sweeping service is part of sanitation service under the Eleventh Schedule of the Constitution, eligible for exemption under Sl. No. 3 of the Exemption Notification. 3. Government or Local Authority Classification: The revenue officer initially argued that the exemption applies to the government or local authority, and the West Bengal Housing Board, being a statutory body, does not qualify. However, it was clarified that the supply is made to the Housing Directorate of the Government of West Bengal, making it eligible for exemption under Sl. No. 3 or 3A of the Exemption Notification, provided other conditions are met. The distinction between pure service and composite supply was deemed immaterial in this context. 4. Ambit of Exemption: The exemption under Sl. Nos. 3 or 3A covers services provided to the government, local authority, governmental authority, or government entity related to functions entrusted to Panchayats under Article 243G or Municipalities under Article 243W of the Constitution. Circular No. 51/25/2018-GST clarified that the service tax exemption under Sl. No. 25(a) of Notification No. 25/2012 continues under GST via Sl. Nos. 3 and 3A of the Exemption Notification. The exemption applies to services like water supply, public health, sanitation, etc., provided to the government. 5. Applicability to Sweeping Service: The ruling examined whether the Applicant’s sweeping service qualifies for exemption under Sl. No. 3A of the Exemption Notification. Article 243G and Article 243W of the Constitution list functions related to Panchayats and Municipalities, respectively. The sweeping service provided by the Applicant includes a bundle of activities classifiable under SAC 99853 as 'cleaning service'. However, sweeping of premises (public or residential) is not classified under 'Sanitation or similar service' (SAC 99945), which includes sweeping and cleaning of roads or streets. Ruling: The sweeping service provided by the Applicant to the Housing Directorate of the Government of West Bengal does not qualify as an activity related to functions entrusted to Panchayats under Article 243G or Municipalities under Article 243W of the Constitution. Therefore, the exemption under Sl. No. 3 or 3A of Notification No 12/2017-CT (Rate) dated 28.06.2017 and WB Govt Gazette Notification-1136-FT dated 28.06.2017 is not applicable to such supplies. Validity: This ruling remains valid subject to the provisions under Section 103 until declared void under Section 104(1) of the GST Act.
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