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TMI Blog2025 (4) TMI 417X X X X Extracts X X X X X X X X Extracts X X X X ..... erial facts or misrepresentation of facts, shall render such ruling to be void ab initio in accordance with Section 104 of the Act. 5. The provisions of both the Central Goods and Services Tax Act and the Tamil Nadu Goods and Services Tax Act (hereinafter referred to as the 'Act') are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Services Tax Act would also mean a reference to the same provisions under the Tamil Nadu Goods and Services Tax Act. M/s. Quality Property Management Services Private Limited, located at 3rd floor, No 86, Sudharsan Building, Pasumpon Muthuramalinga Thevar Salai, Chennai - 600018 (hereinafter called as 'the Applicant') are registered under the GST Acts with GSTIN 33AAACQ4758N1Z1. The applicant is engaged in Facility Management Services business which includes provision of Mechanised and Manual Housekeeping, Security and other support services to various Government and Private Sector Establishments. The applicant has reportedly been awarded the contract to provide Comprehensive Facility Management Services which includes extending ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... S), Tamil Nadu. * Entry No.3 of Notification 12/2017 dated 28.06.2017 exempts 'Pure Services' provided to the Central Government, State Government or Union territory or local authority or a Governmental authority or a Government Entity by way of any 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. * Entry No.3A of Notification 12/2017 dated 28.06.2017 exempts 'Composite supply' of goods and services in which the value of supply of goods constitutes not more than 25 per cent. of the value of the said composite supply provided to the Central Government, State Government or Union territory or local authority or a Governmental authority or a Government Entity by way of any 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. * Sl.No.23 of the Eleventh Schedule under Article 243G of the Constitution of India lists down Health and Sanitation, including hospitals, primary h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fication No. 12/2017-CT (Rate) dated 28.06.2017, amended by Notification No. 02/2018 as the activity of the applicant would fall under the functions entrusted and listed under Article 243G/243W of the Constitution. DISCUSSION AND FINDINGS 5.1 We have carefully considered the submissions made by the Applicant in their application, copies of the relevant documents furnished by them, the submissions made during the personal hearing, and the comments furnished by the jurisdictional tax officers. 5.2 From the submissions made at the time of filing the application, it is seen that the applicant had sought an advance ruling, on the following question, viz., "Our services to 54 hospitals under the control of DM&RHS are exempted supplies as per Notification 12/2017 (as amended) or not?" We observe that the aforesaid question gets covered under 97 (2) (b) of the CGST Act, 2017, that reads as "applicability of a notification issued under the provisions of this Act", and accordingly, the said application is liable for admission. 5.3 On perusal of the documents furnished by the applicant, it is seen that on being awarded the tender, a Letter of Intent (LOI)' dated 25.03.2022 has been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sekeeping, Security and other support services to various Government hospitals coming under the charge of DM&RMS. In this regard, we find that the applicant is of the opinion that issue in question get covered under entry No.3 of Notification No. 12/2017-CT (Rate) dated 28.06.2017, as amended, which is reproduced as below :- Sl.No. Chapter heading Description of Services Rate (per cent) Condition (1) (2) (3) (4) (5) 3 Chapter 99 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 or a Government entity by way of any 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. Nil Nil From the above, we come to understand that the exemption as provided in the said entry is applicable to cases where the following criterion are fulfilled, viz., (i) Whether Pure' Services, and not WCS or composite supplies involving supply of any goods, are supplied to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in which the value of supply of goods constitutes not more than 25 per cent. of the value of the said composite supply provided to the Central Government, State Government or Union territory or local authority or a Governmental authority or a Government Entity by way of any 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. Nil Nil In this regard, we take note of the fact that the contract entered into by the applicant includes provision of consumables and equipment necessary for providing housekeeping services which constitutes only 5 to 6 percent of the total billing done to DM&RHS, as stated by the applicant in the application for advance ruling filed by them. The said fact was also reiterated by the AR (Authorised Representative) of the applicant during the personal hearing held on 03.01.2025. Accordingly, the applicant has contended that even in the event of considering the same as 'composite supplies', the supplies effected by the applicant would still be exempted under Entry No.3A of the Notification No. 12/2017-CT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ria, i.e., "Whether the said services are provided to the Central Government, State Government or Union territory or local authority or a Governmental authority or a Government entity?", we find that under the Health and Family Welfare Department' of the Government of Tamil Nadu, the 'Directorate of Medical and Rural Health Services', is listed as one of the Health Directorates, as seen through the webpage 'https://tnhealth.tn.gov.in'. In this regard, we find that the term 'Governmental Authority', has been defined under the explanation to Section 2 (16) of the IGST Act, 2017, which is reproduced as under :- "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 Panchayat under article 243G or to a municipality under article 243W of the Constitution;" From the above, it could be seen that an 'Authority' in the nature of a Directorate, which is esta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , including hospitals, primary health centres and dispensaries. 24. Family welfare. 25. Women and child development. 26. Social welfare, including welfare of the handicapped and mentally retarded. 27. Welfare of the weaker sections, and in particular, of the Scheduled Castes and the Scheduled Tribes. 28. Public distribution system. 29. Maintenance of community assets. And the functions entrusted to the Municipality under Article 243W of the Constitution, are as listed below :- 1. Urban planning including town planning. 2. Regulation of land-use and construction of buildings. 3. Planning for economic and social development. 4. Roads and bridges. 5. Water supply for domestic, industrial and commercial purposes. 6. Public health, sanitation conservancy and solid waste management. 7. Fire services. 8. Urban forestry, protection of the environment and promotion of ecological aspects. 9. Safeguarding the interests of weaker sections of society, including the handicapped and mentally retarded. 10. Slum improvement and upgradation. 11. Urban poverty alleviation. 12. Provision of urban amenities and facilities such as parks, gardens, playgrounds. 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a Panchayat or a Municipality, and therefore the exemption provided under Entry No.3 of Notification No. 12/2017-CT (Rate) dated 28.06.2017, as amended, is applicable in respect of the scope of work to be carried out by the applicant to the 54 Government hospitals under the charge of the Directorate of Health and Rural Health Services, Tamilnadu. 5.14 We further find that on the same subject matter involving M/s.Padmavathi Hospitality & Facilities Management Service, where the facts of the case were also identical, the then Authority for Advance Ruling, Tamilnadu, had ruled in its Order No. 31/ARA/2021 dated 10.08.2021 that services of housekeeping, Security, assistance in electrical, plumbing, etc., provided to Government hospitals under the control of DM&RHS, DM&RHS (ESI) are exempted under Entry No.3 of the Notification No. 12/2017-CT (Rate) dated 28.06.2017, read with Entry No. 3 of Notification No. II(2)/CTR/532(d-14)/2017 vide G.O.(Ms) No.73 dated 29.06.2017. 6. In view of the detailed discussions supra, we rule as under :- RULING The proposed supply of services for housekeeping, Security, assistance in electrical, plumbing, etc., to the 54 Government hospitals under the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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