2021 (10) TMI 366 - AAR - GST

Levy of GST - man power services provided to the Central Government, State Government, Local Authorities, Governmental Authorities and Government Entities - four service recipients - Government Schools - Government Colleges - Government Offices - Government Hospitals - Notification 12/2017 CT (R) dated 28-6-17. Government Schools as Service Recipient - HELD THAT - Entry 66(b) of Notification 12/2017-CT(R) is the relevant GST exemption entry to the aforementioned mentioned (i) to (iii) recipients - The applicant holds Government Schools (and also Government Colleges, offices and hospitals) as Government and cites sr no 3 of said Notification, for exemption to not only schools but also to all the applicant s cited service recipients - there are no merit in applicant s submission to consider sr no 3 of said Notification in subject matter. Government Colleges as service recipient - HELD THAT - The scope of exemption made available at sr no 66(b) to cited Notification 12/2017-CT(R) excludes from its purview Colleges providing education above higher secondary schooling. With no specific exemption for the services provided to these educational institutions, services provided to the following recipients categorised under Government colleges, by the applicant are taxable. Government Hospitals as service recipient - HELD THAT - Entries 46 and 74 of N/N. 12/2017-Central Tax(Rate) dated 28-6-2017 covers services provided by veterinary clinics/clinical establishments i.e. hospitals. However, the scope of GST exemption available at above said two entries (46 74) does not cover supply of services provided to veterinary clinics/clinical establishments - the subject service provided to Hospitals, is not covered at entry No. 46 74 of the said Notification. Government Offices as Service Recipient - HELD THAT - If Government framed a specific entry (entry 66(b) of NT 12/2017-CT(R)) exempting certain services provided to/in educational institutions, then Government would also have had a specific entry exempting services provided to/in Government offices, if that was the intention of the Government. Now that there are no such specific entry, it would not be the correct interpretation of the law to construe that services provided and consumed in Government offices are to be equated as services in relation to panchayat/ Municipality functions. In absence of any specific GST exemption for services consumed within the said offices, there are no merit to consider applicant s submission for GST exemption - The applicant has misconstrued serial number 3 of NT 12/2017-CT(R) to be applicable in subject matter.

Summary

Issues Involved:
1. GST applicability on manpower services provided to Central Government, State Government, Local Authorities, Governmental Authorities, and Government Entities.
2. Exemption eligibility under Notification No.12/2017-Central Tax (Rate) dated 28-6-2017 for pure services provided to various governmental bodies.

Issue-wise Detailed Analysis:

1. GST Applicability on Services to Government Schools:
The applicant provides services such as security, cleaning, and housekeeping to government schools. As per Sr.No.66(b) of Notification No.12/2017-CT (R) dated 28-6-17, services provided to educational institutions up to higher secondary school level are exempt from GST. The relevant services include security, cleaning, and housekeeping. The ruling confirms that services provided to:
- Girls Literacy Residential School, Karchond, Dharampur, Valsad (housekeeping and cleaning).
- Government Secondary Schools of Chhotaudepur district (housekeeping, cleaning, and security).
- Model School, Naswadi, Chhotaudepur (security).
are exempt from GST under the said notification.

2. GST Applicability on Services to Government Colleges:
The scope of exemption under Sr.No.66(b) of Notification No.12/2017-CT (R) excludes colleges providing education above higher secondary schooling. Therefore, services provided to government colleges are taxable. The following institutions fall under this category:
- Shri C.H.Bhil Government Arts & Commerce College, Naswadi, Chhotaudepur.
- Government Arts College, Kanvat, Chhoteudepur.
- Govt. Science College-Pardi, Valsad.
- District Education and Training Institute, Valsad.
- Government Basic Woman Pedagogic School, Vadodara.

3. GST Applicability on Services to Government Hospitals:
Exemption for services provided by clinics/clinical establishments is covered under Sr.No.46 and 74 of Notification No.12/2017-CT (R). However, these exemptions do not cover services provided to such establishments. The contracts pertaining to hospitals include:
- Veterinary Hospital, Valsad.
- Veterinary Hospital, Dharampur.
- General Hospital, Chhotaudepur.
The ruling confirms that services provided to these hospitals are not exempt from GST.

4. GST Applicability on Services to Government Offices:
The applicant contends that services provided to government offices should be exempt under Sr.No.3 of Notification No.12/2017-CT (R). However, the ruling clarifies that there is no specific exemption for services provided to government offices. The services provided to government offices cannot be equated to services in relation to Panchayat/Municipality functions. The ruling dismisses the applicant's claim for exemption under this notification for services provided to government offices.

Ruling:
1. Security, cleaning, and housekeeping services provided to the cited schools are exempt from GST.
2. GST is applicable on services provided to all cited government colleges providing education above higher secondary level.
3. GST is applicable on services provided to all cited government offices.
4. GST is applicable on services provided to all cited government hospitals.