In re Mpower Saksham Skills (GST AAR Rajasthan)
Exploring the eligibility of M/s Mpower Saksham Skills for exemption benefits under Notification No.12/2017 Central Tax (Rate) dated 28.06.2017 involves an in-depth analysis. The inquiry pertains to services rendered to various governmental entities such as Gram Panchayats, Panchayat Samiti, and others, scrutinized against the conditions stipulated under the notification.
The applicant, M/s Mpower Saksham Skills, engages in diverse business domains, including security services, manpower supply, and anti-termite treatment services. Central to the analysis is whether these services qualify as “pure services” as per the notification’s definition.
The exemption under Notification No.12/2017 Central Tax (Rate) dated 28.06.2017 pertains to pure services provided to specified government bodies, entailing activities related to functions entrusted to Panchayats under Article 243G of the Constitution.
The applicant’s services are dissected to assess their alignment with the exemption criteria. Security services provided to Gram Panchayats align with the criteria of pure services to a local authority but don’t directly relate to functions under Article 243G.
However, the analysis suggests that manpower supply with machinery and anti-termite treatment services, presumed to be composite supplies involving goods, don’t meet the pure services criterion under the notification.
Conclusion: After meticulous examination, it’s concluded that M/s Mpower Saksham Skills isn’t eligible for exemption benefits under Sr. No. 3 of Notification No.12/2017 Central Tax (Rate) dated 28.06.2017 for the services rendered. While security services meet certain criteria, other services fall short, as they’re either composite in nature or lack direct alignment with functions entrusted to Panchayats under Article 243G.
FULL TEXT OF THE ORDER OF AUTHORITY FOR ADVANCE RULING,RAJASTHAN
Note 1: Under Section 100 of the CGST/RGST Act, 2017, an appeal against this ruling lies before the Appellate Authority for Advance Ruling, constituted under Section 99 of CGST/RGST Act, 2017, within a period of 30 days from the date of service of this order.
Note 2: At the outset, we would like to make it clear that the provisions of both the CGST Act and the RGST 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 provision under the RGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST Act / RGST Act would be mentioned as being under the “GST Act”.
The issue raised by M/s. Mpower Saksham Skills, First Floor,F-130, Cine Star, Central Spine, Vidhyadhar Nagar, Jaipur, Rajasthan-302039(hereinafter the applicant) is fit to pronounce advance ruling as it falls under the ambit of the Section 97(2) (a) given as under:
(b) Applicability of a notification issued under the provisions of this Act
(e) Determination of the liability to pay tax on any goods or services or both
A. SUBMISSION OF THE APPLICANT (IN BRIEF):-
The applicant M/s Mpower Saksham Skills is a partnership firm and registered under GST and having its principle place of business at Jaipur (Rajasthan) and engaged in multiple domain of business. Out of that one of the work is Security Services to the Gram Panchayats and second proposed work is Manpower Supply (Man with machine: Computer with operator) to Block Development Officer (Panchayat Samiti). The another proposed work is “Anti Termite Treatment Services” for community assets/government buildings of the Gram Panchayat, whereas the work will be awarded by Gram panchayat or Panchayat Samiti or any Government Entity will sub late the said work.
B. INTERPRETATION AND UNDERSTANDING OF APPLICANT ON QUESTION RAISED (IN BRIEF):-
The Notification No.12/2017 Central Tax (Rate) dated 28.06.2017 exempts the intra-state supply of services of description as specified in column (3) of the Table below from so much of the central tax leviable thereon under sub-section (1) of section 9 of the said Act, as is in excess of the said tax calculated at the rate as specified in the corresponding entry in column (4) of the said Table, unless specified otherwise, namely:-
