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2019 (2) TMI 921 - AAR - GSTMan power services to Hospital cum General Medical College and State University (Education Institutions) - exempt from GST or not - Held that - The provisions of clause (b) of the Sr. No. 66 of notification no. 12/2017-Central Tax (Rate) dated 28.06.2017 and corresponding notification No. 47/ST-2 Dt. 30.06.2017 of the State tax apply to services provided to educational institutions providing education up-to higher secondary school or equivalent level only. The services provided by the applicant, i.e. Man Power services to Hospital - cum - General Medical College and State University do not qualify for exemption under Sr. No. 66 of notification no. 12/2017-Central Tax (Rate) dated 28.06.2017 and corresponding notification No. 47/ST-2 Dt. 30.06.2017 of the State Tax.
Issues:
1. Whether man power services provided to Hospital cum General Medical College and State University are exempted from GST under notification no. 12/2017 dated 28.06.2017? Analysis: The applicant sought an advance ruling on whether the man power services provided to Hospital cum General Medical College and State University are exempted from GST under notification no. 12/2017 dated 28.06.2017. The officer under section 98 (1) of the CGST/ HGST Act 2017 clarified that security services provided to an educational institution up to higher secondary school level only would attract nil rate of tax. Since the party is supplying manpower services to the medical institutions and state universities, they are liable to pay GST on such services. The applicant argued regarding the applicability of Sr. No. 66 Heading 9992 of notification no. 12/2017-Central Tax (Rate) dated 28.06.2017 during the personal hearing. The authority discussed the relevant notifications, specifically notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 and notification No. 46/ST-2 dated 30.06.2017 under the HGST Act 2017, which provide the rate of tax on various services. Education services attract GST at 18%. The authority referred to Sr. No. 66 of notification no. 12/2017-Central Tax (Rate) dated 28.06.2017 and corresponding state tax notification to determine the applicability of the exemption. The entry exempts services provided to educational institutions offering education up to higher secondary school level only. Based on the discussion and findings, the authority ruled that the man power services provided by the applicant to Hospital cum General Medical College and State University do not qualify for exemption under Sr. No. 66 of notification no. 12/2017-Central Tax (Rate) dated 28.06.2017. Therefore, the applicant is liable to pay GST on these services.
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