In re Vishv Enterprise (GST AAR Gujarat)
Whether services of providing Para-medical Administrative, Technical and other Staff on Outsource basis to Seth L.G. General Municipal Hospital are exempted or not?
As no evidence has been provided by applicant to establish that Seth L.G. General Hospital falls under definition of ‘Central Government’ or ‘State Government’ or ‘Local authority’ or ‘Governmental authority’ or ‘Government entity. Entry 3 of the Notification No. 12/2017-Central Tax (Rate) dated 28/06/2017 exempts the Pure services provided to Central Government, State Government or Union Territory or Local Authority. In absence of any evidence in support of above, the exemption provided under the Entry 3 of the said Notification cannot be extended to them.
11. In light of the above, we hold that the exemption is not available to the applicant in respect of supply of manpower services viz. Para-medical Administrative, Technical and other Staff on Outsource basis made to Seth L.G. General Municipal Hospital in terms of Serial No 3 of the Notification No. 12/2017- Central Tax (Rate) dated 28.06.2017.
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, GUJARAT
The applicant is engaged in the business of contract work services of Man Power Recruitment & Supply by outsourcing in Government Department. There is a matter which need to clarification regarding applicability of GST on supply of contract work service of Man Power and House Keeping in Government Municipal Corporation, Government Hospital and any other Government Department.
2. The applicant further submitted that there is an issue regarding payment of GST amount with Ahmedabad Municipal Corporation Seth L.G. Hospital, Maninagar, Ahmedabad. They regularly place their contract service bill with 9%CGST & 9% SGST but they are not ready to pay and respond that they are not in category to pay GST. There is exemption to service to Municipality under Article 243W & Panchayat under Article 243G. Now, they are confused that either said services are exempted or not? Therefore, they requested to provide them some evidence so they can give Seth L.G. Hospital and ask for their pending payment which has not been released from April, 2019. They have also submitted copy of the letter dated 16.08.2019 given by Seth L.G. Hospital.
3. They have started Service Contract from October, 2018 to March, 2019. They have paid them GST with Bill but from April, 2019 onwards, they have refused to pay GST and further they are demanding and recovering that GST amount from their Service Bill, which have been paid in last year to them. The applicant further declared that they have collected GST with bills and paid that GST in their GSTR 3B Returns of 2018-19, now, how can they charged or demand that amount of GST from them? From April, 2019 onwards, their service bills payment has not been released by them. They have also submitted the copy of the Work Orders issued for providing Para-medical Administrative, Technical and other Staff on Outsource basis to L.G. Seth Hospital.
4. In above backdrops, the applicant has sought for an advance ruling in respect of the following question:
Whether services of providing Para-medical Administrative, Technical and other Staff on Outsource basis to Seth L.G. General Municipal Hospital are exempted or not?
5. At the time of personal hearing held through Video Conferencing on 17.08.2020, the Authorised Representative of the applicant, Shri Pradip Prajapati reiterated the facts as stated in the Application and as mentioned herein above.
DISCUSSION & FINDINGS:
6. We have considered the submissions made by the applicant in their application for advance ruling as well as at the time of personal hearing. We also considered the issue involved, on which advance ruling is sought by the applicant, relevant facts & the applicant’s interpretation of law.
6.1 At the outset, we would like to state that the provisions of both the CGST Act and the GGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the GGST Act.
7. In this case, a moot point is to be decided regarding tax liability on providing of Para-medical Administrative, Technical and other Staff on Outsource basis to Seth L.G. General Municipal Hospital, Maninagar, Ahmedabad.
8. We note that the applicant has submitted the copy of 12 Work Orders, awarded for providing of Para-medical Administrative, Technical and other Staff on Outsource basis by Seth L.G. General Municipal Hospital, Maninagar, Ahmedabad, run by Ahmedabad Municipal Corporation, as detailed below:
