In re Work Group Sushikshit Berojgar Nagrik Sewa Sahkari Sanstha Maryadit Amravati (GST AAR Maharashtra)
Clause (q) of the 12th Schedule mentioned above, mandates Municipal Corporations to provide Public amenities including street lighting, parking lots, bus stops and public conveniences. Applicant is providing manpower to the Amravati Municipal Corporation for collecting vehicle parking Charges in the Municipal Corporation area. This activity is in relation to functions and responsibilities as mentioned in of Clause (q) above and will be covered under Public amenities including parking lots, etc. Therefore, the applicant will be eligible for exemption under Entry No. 3 of Exemption Notification No. 12/2017 dated 28.06.2017 since in such a case, applicant is assisting the Municipality in providing/maintaining Public amenities including parking lots.
Further, the applicant, in Para 2 (a) of their submissions have stated that they are supplying manpower for cleaning of public washrooms and restrooms but it is not mentioned whether such services are provided to the Amravati Municipal Corporation. In their submissions, under the heading “Scope of Work”, they have not at all mentioned anything about providing manpower to the Amravati Municipal Corporation, for cleaning of public washrooms and restrooms. According to their submissions, under the head ‘Scope of Work’ Sr. Nos. 9 & 10, services to the Amravati Municipal Corporation providing manpower for collecting vehicle parking fees from people who park their vehicles in the municipal corporation area and providing manpower for collecting rent from hawkers who use the municipal corporation area for selling the stuff on street respectively. All other supplies mentioned under the head ‘Scope of Work’ relates to services rendered to MSEDCL. Also, as per the table of supply provided by them in their missions, they have at Sr. no. 8 of the table, mentioned that they are providing to the Amravati Municipal Corporation, staff for cleaning. They have not mentioned whether it is staff provided for cleaning of public washrooms/restrooms. Hence a perusal of their submissions in its entirety do not reveal that such services of providing staff for cleaning of public washrooms/restrooms are supplied to Amravati Municipal Corporation. We are of the opinion that providing manpower for cleaning of public washrooms and restrooms, if provided Municipal Corporations, will be covered under Public health, sanitation conservancy and solid waste management /Public amenities including street lighting, parking lots, bus stops and public conveniences since these functions are entrusted to the Municipalities under Article 243 W of the Constitution. Since it is not forthcoming from the applicant’s submissions that, they are providing such services of providing staff for cleaning of public washrooms/restrooms to the Amravati Municipal Corporation, the applicant will not be eligible for exemption under Entry No. 3 of Exemption Notification No. 12/2017 dated 28.06.2017.
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING
PROCEEDINGS
(Under Section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017)
The present application has been filed under Section 97 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017 [hereinafter referred to as ”the CGST Act and MGST Act” respectively ] by M/s. WORK GROUP SUSHIKSHIT BEROJGAR NAGRIK SEWA SAHKARI SANSTHA MARYADIT AMRAVATI., the applicant, seeking an advance ruling in respect of the following questions.
1. Whether the services provided by the Applicant are covered under Clause 1 & 2 of Twelfth Schedule of Article 243W?
2. Whether the services provided by the applicant fall under the Exemption Notification No. 12/2017 dated 28th June, 2017 (Entry No. 3 of Exemption Notification) as amended from time to time as the services are in the nature of pure labour services.
3. Whether the services provided by the applicant fall within the Government Works Contract Services on which GST rate was amended to 12% in the notification No. 20/2017.
At the outset, we would like to make it clear that the provisions of both the CGST Act and the MGST Act are the same except for certain provisions. Therefore, a reference to the CGST Act would also mean a reference to the same provision under the MGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, the expression ‘GST Act’ would mean CGST Act and MGST Act.
2. FACTS AND CONTENTION – AS PER THE APPLICANT
The submissions made by the applicant are as under:-
2.1. M/s. Work Group Sushikshit Berojgar Nagrik Sewa Sahkari Sanstha Maryadit Amravati (Applicant), is engaged in supply of manpower belonging to the economically weaker sections of society, for; cleaning of public washrooms and restrooms; collecting rent from hawkers who use the municipal corporation area for selling goods on streets; collecting vehicle parking fees in the municipal corporation area; meter reading to the Maharashtra State Electricity Board (MSEB); printing of energy bills of consumers; setup of electricity connection in rural and urban areas and in government quarters and for Operation and Maintenance purpose to the MSEB. All these activities directly or indirectly help the Municipal Corporation to achieve its objectives as listed in the Maharashtra Municipal Corporation Act, 1966.
2.2 Applicant is engaged in activities enumerated in the 11th Schedule of the Indian Constitution like, Rural electrification, including distribution of electricity and is also engaged in activities enumerated in the 12th Schedule of the Indian Constitution viz., Planning for economic and social development, Public health, sanitation conservancy and solid waste management and Public amenities including street lighting, parking spaces, bus stops and public conveniences.
2.3 As per Notification No. 12/2017- C.T. (Rate), Intra-State supply of services of description as specified are exempt from so much of the central tax leviable thereon under sub-section (I) of Section 9 of the said Act, as is in excess of the said tax calculated at the rate unless specified otherwise, subject to the relevant conditions.
2.4 Clause 16 of Section 2 of the IGST Act, 2017, defines the expression “governmental authority” and as per Notification No. 20/2017, in the Table,- (i) against serial number 3, for item (iii) in column (3) and the entries relating thereto in columns (3), (4) and (5), the following was substituted, namely:-
