In re Ex Servicemen Resettlement Society (GST AAR West Bengal)
The applicant, Ex Servicemen Resettlement Society, approached the West Bengal Authority for Advance Ruling (AAR) under Section 97(1) of the GST Act seeking a determination on whether the security and scavenging services it provides to various State Government Medical Colleges, Hospitals, District Hospitals, and Sub-Divisional Hospitals in West Bengal qualify as “Pure Services” exempt from GST under Notification No. 12/2017–Central Tax (Rate) dated 28.06.2017. The applicant stated that it submits monthly bills for wages, employer contributions to EPF and ESIC, and annual bonus, with GST at 18% charged and deposited until now. The hospitals receiving the services have claimed that these services are exempt under the cited notification and constitute Pure Services.
The AAR admitted the application, noting that the question falls under Section 97(2)(b) and that the issue has not been previously decided or is pending before any authority. No specific view was provided by the revenue authorities.
The AAR examined the scope of “Pure Services,” though the term is not defined in the GST Act. The authority relied on Serial No. 3 of Notification No. 12/2017, which exempts pure services (excluding works contracts or composite supplies involving goods) provided to the Central Government, State Government, Union Territory, local authority, or Governmental authority when such services relate to any function entrusted to Panchayats under Article 243G or Municipalities under Article 243W of the Constitution.
