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TMI Blog2021 (10) TMI 366X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 Governmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any activity in relation to any function entrusted to Panchayat under article 243G of the Constitution or in relation to any function entrusted to a municipality under 243W of the constitution; that the crux of the above exemption entry can be summarised for taking benefit of the said exemption as follows: 1. Pure services are provided. 2. Service recipient is either Central Government or State Government or Local Authority or Governmental Authority or a Governmental Entity and 3. Such services are provided to the specified recipient to perform function as mentioned under Article 243G or under Article 243W of the Constitution. (iii) The definition of 'Pure service' has not been given anywhere so the term should be construed in general meaning as 'Pure Service' which means any supply for consideration in which goods are not supplied along with services to construe as a composite supply, hence if a person provides only service to any person for consideration without involvement of supply of goods along with supply of services then the said supply of service can be termed as supply of pure services. (iv) The list of functions entrusted to the Panchayat and to the Municipality ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ural, educational and aesthetic aspects. 14. Burials and burial grounds; cremations, cremation grounds; and electric crematoriums. 15. Cattle pounds; prevention of cruelty to animals. 16. Vital statistics including registration of births and deaths. 17. Public amenities including street lighting, parking lots, bus stops and public conveniences. 18. Regulation of slaughter houses and tanneries. (v) The applicant is of the view that exemption mentioned in Notification No.12/2017-Central Tax (Rate) and Notification No.12/2017-State Tax (Rate) shall be available to the services they are providing to Central Government, State Government, Local Authority, Governmental Entity, Governmental Authority and GST shall be leviable at nil rate of tax on supply of pure services. 4. The applicant vide additional submission, received on 12-8-2021, submitted its following service recipients: 1. Collector and District Magistrate Office, Valsad and its subordinate offices. 2. District Institute of Education and Training, Valsad. 3. Jilla Udyog Center, First floor, Damanganga Bhavan. 4. Jilla Samaj Kalyan Adhikari niKacheri(VichartiJati) Seva Sadan-2. 5. District Panchayat Valsad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e) a Regional Council or a District Council constituted under the Sixth Schedule to the Constitution; (f) a Development Board constituted under article 371 of the Constitution; or (g) a Regional Council constituted under article 371A of the Constitution; As per clause (zf) of paragraph-2 of Notification No.12/2017-Central Tax (Rate) dated 28.06.2017, "governmental authority" has the same meaning as assigned to it in the explanation to clause (16) of section 2 of the Integrated Goods and Services Act, 2017 (13 of 2017). Clause (16) of section 2 of the Integrated Goods and Services Act, 2017 (13 of 2017) reads as follows: Explanation.--For the purposes of this clause, the expression "governmental authority" means an authority or a board or any other body,-- (i) set up by an Act of Parliament or a State Legislature; or (ii) established by any Government, with ninety per cent. or more participation by way of equity or control, to carry out any function entrusted to a municipality under article 243W of the Constitution; Notification No.12/2017-Central Tax (Rate) dated 28.06.2017 was further amended by Notification No.32/2017-Central Tax (Rate) dated 13.10.2017 wherein it is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i Kacheri-State Government. 19. Government Science College-Pardi-Government Authority/Entity. 20. Collector and District Magistrate Office-Chhota Udepur and its subordinate offices-State Government. 21. District Education Officer-Chhota Udepur-State Government. 22. Deputy Director Agriculture-Chhota Udepur and its offices-State Government. 23. Model School-Naswadi(GSTES) -Government Authority/Entity. 24. Water Resource Development Department, Chhota Udepur and its offices State Government. 25. Government General Hospital, Chhota Udepur-State Government. 26. Office of the Assistant Director of Libraries-State Government. 27. Shri C H Bhil Govt. Arts and Commerce College-Government Authority/Entity. 28. Jilla Samaj Kalyan Adhikari Chhota Udepur-State Government. 29. Deputy Conservator of Forests, Chhota Udepur-State Government. 30. Prayojna Vahivatdar Office, Chhota Udepur -State Government. 5.3 The applicant submits that the third condition to be satisfied is whether the services provided to these entities are services provided by way of any activity in relation to any function entrusted to a Panchayat under Article 243G of the Constitution of India or in re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2021 in the case of Ahmedabad Municipal Transport Service wherein, at para-79, it is held as follows: "79. We find that the term 'in relation to' used in the above exemption is very much wide enough to cover every kind of services that results in performance of the functions as mentioned in Article 243W of the Constitution of India either directly or indirectly. Even the services provided for enabling the organization to perform defined functions would also be covered as a reason of usage of words 'in relation to'. To substantiate this, we refer to the judgement of Doypack systems(P) ltd. vs. UOI as reported in (1988) 36 ELT 201 (SC) wherein it was held that "the expression 'in relation to' (so also 'pertaining to'), is a very broad expression which pre-supposes another subject matter. These are words of comprehensiveness which might both have a direct significance as well as an indirect significance depending on the context. It also held that the expression 'in relation to' has been interpreted to the words of widest amplitude. The term 'relating to' expands the scope of the entry. The terms have been interpreted by the Supreme Court in the case of CCE v. Rajasthan State Chemica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... river through outsource in the office of the Deputy Collector and Sub Divisional Magistrate, Valsad. (vii) No. Rokav/Makam/8851 dated 20-4-2021 of the Employment officer, Valsad regarding appointment of peon through outsource in the District Employment Exchange Office, Valsad. (viii) No. WCO/Val/Outsource/781/2021-22 dated 10-5-2021 of the Woman and Child Officer, Valsad and Resolution No. Vahat. 312019/958/A dated 16-10-2020 issued by the Section Officer, Woman and Child Development Department pertaining to requirement of Deputy Accountants, Field officers and Junior Clerks in the offices of the District woman and Child Officer-Valsad and the office of the Commissioner, Woman and Child Development Office through outsource. (ix) No. CWC/Makab/Outsource/Permission/2131 to 2163781/ 2020-21 dated 15-7-2020 of the Additional Commissioner, Woman and Child Development, Gandhinagar pertaining to requirement of Deputy Accountants, Field officers and Junior Clerks in the office of the Commissioner, Woman and Child Development Office through outsource. (x) Resolutions No. Vahat/312019/958/A dated 24-10-2019 and 26-22020 of the he Deputy Secretary, Woman and Child Development Departme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of computer operator in the District Planning office, Valsad through outsource. (xxi) Letter No.Mahiti/Val/hisab/835/21 dated 23-4-2021 of the Deputy Information Director, Valsad regarding appointment of driver and sweeper in the District Information office, Valsad through outsource. (xxii) Random note issued to the Mahekam Branch, Collector Office, Valsad vide F.No.DCB/MAG/Vashi 6564/2021 dated 22-4-2021 issued by the Deputy Chitnis to Collector, Valsad requesting to initiate required proceeding for appointment of peon through outsource. (xxiii) No.Ayojan/Vahat/Nimnuk/Vashi 145/2021 dated 19-4-2021 of the District Planning Officer, Valsad regarding appointment of computer operators, driver and peons through outsource in the District Planning Office, Valsad. (xxiv) No. CB/Est-1/Outsource/Vashi.332/21 dated 19-4-2021 of the Chitnis to Collector of Valsad regarding appointment of peon at the Chitnis Branch, Office of the Collector and District Magistrate, Valsad through outsource. (xxv) No. ADM/Outsourcing/Vashi/2021 dated 22-4-2021 of the District Officer, Dharampur regarding appointment of Driver, Computer Operator, Peons and Water Bearer in the office of the District ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arding appointment of Computer Operators, peon and water bearer in his office through outsource. (xxxvii) No. Mahekam/Outsource/Vashi-146/2021 dated 28-4-2021 of the Mamlatdar, Vapi regarding appointment of Computer operators, peons, drivers and sweeper in his office through outsource. (xxxviii) No. EST/Outsource/Vashi 217/2021 dated 5-6-2021 of the Mamlatdar, Pardi regarding appointment of peons in his office through outsource. (xxxix) O.No. DIC/Valad/Makam/Outsource/884/2021 dated 27-4-2021 of the Deputy Industries Commissioner and General Manager, District Industries Center, Valsad regarding appointment of Driver and sweeper in the office of the District Industries Valsad through outsource. (xl) No. Saka/Vija/Makam/2021/631 to 633 dated 16-4-2021 of the District Social Welfare Officer(Developed Caste), Valsad regarding requirement of Data Entry Operator in his office through outsource. (xli) No. JP/EC-1/Vashi/2065/2021 dated 7-5-2021 of the Executive Engineer, Panchayat(R.B.)Department, Valsad regarding appointment of driver and peon in his office through outsource. (xlii) O.No. PB/42/2021 dated 9-4-2021 of the Deputy Executive Engineer, Panchayat (R.B.) Department, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Program Officer, Integrated Child Development Scheme, JP, Valsad regarding appointment of peon in the ICDS office through outsource. (lv) No.DEO/Val/5683/2021 dated 12-5-2021 issued by the District Education Officer, Valsad regarding appointment of peon and driver in their office through outsource. (lvi) No.COE/58-59/2021 dated 28-5-2021 of the Horticulture Officer, Center of Excellence for Floriculture and Mango, Chanvai, Valsad regarding requirement of one computer operator in their office through outsource. (lvii) No.O.EST/196/2021 dated 12-4-2021 of the Deputy Executive Engineer, National Highway Sub Department, Valsad regarding appointment of driver and peons in their office through outsource. (lviii) O.No.DDP-1/EC/Outsourcing/667 dated 25-5-2021 of the Executive Engineer, Damanganga Project Department No.1, Madhuban Colony regarding appointment of computer operator through outsourcing. (lix) O.No.DCSD-13/EC/Outsourcing Staff/127 dated 1-5-2021 of the Deputy Executive Engineer, Damanganga Project Department No.13, Vapi regarding appointment of Co. operator in their office through outsourcing. (lx) O.No.DOFDPV/EC/100 dated 22-4-2021 of the Deputy Executive Eng ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ir office through outsourcing. (lxxii) O.No.DDA/AK/Vashi 1708/2021 dated 24-6-2021 of the Deputy Director of Animal Husbandry, Jilla Panchayat, Valsad regarding requirement of data entry operator for their office through outsourcing. (lxxiii) O.DDAH/IPDC/Accounting/452/2021 dated 19-4-2021 issued by the Deputy Director of Animal Husbandry, Intimate Poultry Development Unit, Chanvai, Valsad regarding requirement of computer operators, driver and peon in their office through outsourcing. (lxxiv) No.O.No.Vet.Poly/Valsad/179/2021 dated 20-4-2021 of the Deputy Director of Animal Husbandry, Veterinary Polyclinic, Valsad regarding appointment of computer operator and driver by outsourcing. (lxxv) No.O.No.Veterinary/Valsad/93/2021 dated 20-4-2021 of the Assistant Director of Animal Husbandry, Veterinary Research Unit, Valsad regarding giving appointment of driver in their office by outsourcing. (lxxvi) No.TP/Makam/AS/Nimnuk/Vashi/07/2021 dated 20-4-2021 regarding appointment of peons for the office of the Taluka Panchayat, Umargam through outsourcing. (lxxvii) O.No.DDAH/Hisabi/Vashi-1631/2021 dated 30-4-2021 of the Deputy Director of Animal Husbandry, Jilla Panchayat, Valsad re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ugh outsourcing. (lxxxix) No. O.No. /Outsource/1160/2020 dated 14-9-2020 of the Child Marriage Prohibition cum District Social Protection Officer, Chhotaudepur regarding appointment of Data Entry Operators at all Taluka Mamlatdar office, Chhotaudepur through outsourcing. (xc) No. Savan/Valas/619/2021 dated 26-4-2021 of the Assistant Electricity Inspector regarding requirement of peon in their office through outsourcing. (xci) No.JAM/Planning/O.Appointment/Vashi/2661/2020 dated 15-92020 of the District Planning Officer, Chhotaudepur regarding appointment of peon cum water bearer and driver for their office through outsourcing. (xcii) O.No. /Outsource/1159/2020 dated 14-9-2020 of the Child Marriage Prohibition cum District Social Protection Officer, Chhotaudepur regarding requirement of peon for their office through outsourcing. (xciii) O.No.DHJ.chho/Ganga Sva.Yo/539/2021 dated 22-6-2021 of the Woman and Child Officer, Chhotaudepur regarding requirement of Data Entry Operators for their office through outsourcing. (xciv) O.No.DHJ.chho/Ganga Sva.Yo/539/2021 dated 15-9-2020 of the Woman and Child Officer, Chhotaudepur regarding requirement of Data Entry Operators in their ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... taudepur regarding requirement of driver, peon cum water bearer and sweeper in their office through outsourcing. (cviii) No.O.S./2/K/935/2020-21 dated 14-9-2020 of the Deputy Forest Conservator, Chhotaudepur regarding requirement of driver in their office through outsourcing. (cix) No.O.S./2/K/935/2020-21 dated 1-6-2021 of the Deputy Forest Conservator, Chhotaudepur regarding requirement of driver in their office through outsourcing. (cx) O.No./DSWO/Vija/Outsource employee/2020-21/2414 dated -92020 of the Deputy Social Welfare Officer, Chhotaudepur regarding requirement of a Computer Operator, peon, sweeper in their office through outsourcing. (cxi) No.Tajar/Chhota/makam/Hajri/Vashi/1409 of the District Treasury Officer, Chhotaudepur regarding requirement of peons and sweeper in their office through outsourcing.. (cxii) O.No.Bagat/Nabani/Vahat/ /20 dated 26-8-2020 of the Deputy Horticulture Director, Chhotaudepur regarding appointment of Computer operators, peon cum water bearer and sweeper for their office through outsourcing.. (cxiii) O.No.Bagat/Nabani/Vahat/998/20 dated 15-5-2021 of the Deputy Horticulture Director, Chhotaudepur regarding appointment of Computer oper ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ough outsourcing. (cxxiv) No.Adm/Vashi/191/2020 dated 17-1-2020 of the Residential Additional Collector, Chhotaudepur regarding requirement of Technical Assistants and Multitasking Staff for their office through outsourcing. (cxxv) No.Adm/Vashi/194/2020 dated 17-1-2020 of the Collector, Chhotaudepur regarding requirement of Technical Assistants and Multitasking Staff for their office through outsourcing and containing details of their wages. (cxxvi) No.Noni/Makam/250 to 253/2021 dated 1-6-2021 of the Registration Inspector, chhotaudepur regarding requirement of peon through outsourcing. (cxxvii) No.Makam/Vashi/412/2021 dated 20-5-2021 of the Mamlatdar, Jetpur, Pavi regarding appointment of peon in their office through outsourcing. (cxxviii) No.Disaster/1/2021 dated 31-5-2021of Mamlatdar, Sankheda regarding requirement of peon in their office through outsourcing. (cxxix) No.Makam/Vashi/876 to 878/2020 dated 17-9-2020 of the Mamlatdar, Jetpur, Pavi regarding appointment of driver, peon, sweeper, mali and security guard in their office through outsourcing. (cxxx) Contract dated 15-9-2020 of Mamlatdar, Bodeli regarding appointment of computer operator, peon, mali, driver, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d for appointment of peon at Animal treatment centre at Valsad through outsource. (cxlvi) 2 Contracts dated 1-4-2021 of the Veterinary Officer, Veterinary Hospital, Dharampur regarding appointment of driver and peons in their hospital through outsource. (cxlvii) O.No.GH/Lab/Outsource/Manpower/1048-50/2021 dated 14-4-2021 of the Superintendent, General Hospital, Chhotaudepur regarding requirement of laboratory technicians, laboratory assistants, data entry operators, watchmen and sweepers for their hospital through outsourcing. (cxlviii) Outward No.Hasab/2030/406 dated 15-9-2020 of the Principal of Shri C.H.Bhil Government Arts & Commerce College, Naswadi, Chhotaudepur regarding appointment of watchmen, sweepers and gardener for the said college through outsourcing. (cxlix) O.No.GAC/Vahat/2021/53 dated 12-2-2021 of the Principal, Government Arts College, Kanvat, Chhoteudepur regarding appointment of sweeper for the college through outsourcing. (cl) No.Ref.No.GSCP/294/2021 dated 27-4-2021 of the Principal, Govt. Science College-Pardi, Valsad regarding appointment of peons for their college through outsourcing. (cli) Contract dated 21-1-2021 of the Principal, Government Ba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f CGST Act and GGST Act are in pari materia and have the same provisions in like matter and differ from each other only on a few specific provisions. Therefore, unless a mention is particularly made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the GGST Act. 12. We have carefully considered all the submissions made by the applicant. We note that Revenue has neither submitted any comments nor appeared for the hearing. 13. On careful study and examination of all the 155 contracts/work orders presented before us, we categorise the service recipients broadly into four categories: i. Government Schools (refer para 7 Sr.No.cliii to clv) ii. Government Colleges (refer para Sr.No.cxlviii to clii) iii. Government Offices (refer para7 Sr.No.i to cxliv) iv. Government Hospitals (refer para 7 Sr.No.cxlv to cxlvii) Government Schools as Service Recipient 14. We refer to Sr.No.66 (b) to Notification 12/2017 CT (R) dated 28-6-17, reproduced as follows: Sl.No. Chapter Description of Service Rate Condition 66. Heading 9992 Services provided - (a) by an educational institution to its students, fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is the relevant GST exemption entry to the aforementioned mentioned (i) to (iii) recipients. 14.4 We find that 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. We find no merit in applicant's submission to consider sr no 3 of said Notification in subject matter. 15. Government Colleges as service recipient: We find 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. On reading of the 155 copies of contracts and work orders submitted by the applicant, the Colleges under this category are as follows: (i) Shri C.H.Bhil Government Arts & Commerce College, Naswadi, Chhotaudepur. (ii) Government Arts College, Kanvat, Chhoteudepur. (iii) Govt. Science College-Pardi, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Offices are to be equated as services provided in relation to Panchayat/ Municipality functions. If such a meaning is to be arrived for any services provided to Government offices be exempt from GST, then, that would mean that each and every service provided to/in relation to a Government Office functioning, including each and any service provided to all the Government employees working in that office, whatsoever supply of service, for the employees who function in that office will also be exempted. 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 we do not have any 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, we find no merit to consider applicant's submission for GST e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d of such meetings. Drivers will be required to keep the vehicles clean and in ready to travel condition. Besides, the watchman, gardener, cooks, sweeper, water bearer are all providing services within the offices/hospitals/institutions in which they are serving. We therefore find that since these services are supplied, utilised and consumed in the offices/hospitals/institutions, they cannot be equated as services in relation to Panchayat/ Municipal functions. 19. We find that the applicant has cited reference to certain Advance Ruling pronounced. However, as per the provisions of Section 103 CGST Act, the Advance Ruling pronounced by the Advance Ruling Authority shall be binding only on the applicant who had sought it and the concerned officer in respect of the applicant. Further, as we held that subject services supplied, utilised and consumed in the said offices cannot be equated as services in relation to panchayat/municipal functions, the reference to Doypack Systems case is not applicable in subject matter. 20. In Conspectus of aforementioned findings, we pass the Ruling: RULING 1. The Subject Supply for the purpose of Security, Cleaning and Housekeeping services provided ..... X X X X Extracts X X X X X X X X Extracts X X X X
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