In re Janki Sushikshit Berojgar Nagrik Seva Sahakari Sanstha Ma (GST AAR Maharashtra)
Applicant is mainly supplying manpower and only in the case of Government Ashram school, applicant is providing goods in the form of vegetable and mutton as per the contract executed.
The first question raised by the applicant is whether the supply of impugned services like; supply of staff for cleaning the District Collector’s office premises; providing manpower in the form of skilled assistants and technicians, to Hospitals and Dispensaries run by Government medical college, are covered under clause 1 & 2 of Twelfth Schedule of Article 243W.
It is seen that Clause 1 is related to Urban planning including town planning and Clause 2 is related to Planning of land- use and construction of buildings for municipalities. In the subject case, as per the submissions made, the applicant is providing manpower/staff (labourj/security guard to the Amravati Municipal Corporation, Amravati (AMC). Amravati Municipal Corporation is a municipality, set up as per the provisions of Article 243 P of Constitution of India. The remaining supply of services/goods are to various departments of the Government but not to the municipality.
For the subject issue, we find that Clause No. 1 and 2 mentioned above are related to Urban planning including town planning and planning of land – use and construction of buildings, which are totally different from the applicant’s supply of services. The applicant is supplying manpower for specific purposes like computer work, cleaning of office premises, security, skilled and unskilled labour, etc. In our view, such supply of services and goods cannot be said to be related to functions specified under Clause land 2 of the 12lh Schedule. Applicant has not provided manpower in relation to any urban planning or planning of land-use and construction of building. Further, the applicant has not brought on record as to how their supply is in furtherance of functions specified in the above mentioned Clause 1 and 2. Hence it is felt that, such subject supply is out of purview of the scope of Clause 1 and 2 of 12th Schedule of Article 243 W of the Constitution, as functions entrusted to Municipality.
FULL TEXT OF ORDER OF APPELLATE AUTHORITY OF ADVANCE RULING MAHARASHTRA
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 JANKI SUSHIKSHIT BEROJGAR NAGRIK SEVA SAHAKARI SANSTHA MA AMRAVATI , the applicant, seeking an advance ruling in respect of the following questions.
1. Whether the services provided by the Applicant are covered under Clouse 1 & 2 of Twelfth Schedule of Article 243 W?
2. Whether the meals provided to Government Ashrams for economically weaker class of students fall within Clause 1 & 2 of Twelfth Schedule of Article 243 W?
3. 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.
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, unless a mention is specifically made to any dissimilar provisions, 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 is as under:-
2.1 Applicant, M/s. Janki Sushikshit Berojgar Nagrik Seva Sahakari Sanstha MA, Amravati-444605, provides labour to the municipal corporation, which include cleaning staff, data entry operators, helpers, teachers (Psychologist and Speech therapist) for Zilla Parishad schools and colleges. These labour belong to the economically weaker sections of society.
2.2 following are the exact objectives of the society:-
a. Providing security guard to Municipal Corporation
b. Providing Computer and Data entry operator to Municipal Corporation
c. Providing cleaning and helper staff to Municipal Corporation and Local Authority for cleaning of roads, hospitals and other public places.
d. Providing Meals to economically weaker class students residing in the Government Ashrams.
e. Providing Psychologists and Audio and speech therapist in Government colleges for handicapped and special children.
f. Any other activity of Municipal Corporation that requires labour for the development of society in general.
2.3 All the above activities directly or indirectly help the Municipal Corporation achieve its objective as listed in the Maharashtra Municipal Corporation Act, 1966.
2.4 As per Article 46 of the Indian Constitution, The State shall promote with special care the educational and economic interests of the weaker sections of the people, and, in particular, of the Scheduled Castes and the Scheduled Tribes, and shall protect them from social injustice and all forms of exploitation.
2.4.1 Here, the word State shall have the meaning as described in Part III of the constitution. As per Article 12, Part III, “the State” includes the Government and Parliament of India and the Government and the Legislature of each of the States and all local or other authorities within the territory of India or under the control of the Government of India.
2.5 To fulfil the objectives of said Article 46, Article 243 W of the Indian Constitution, stipulates the following:-
Powers, authority and responsibilities of Municipalities, etc.
Subject to the provisions of this Constitution, the Legislature of a State may, by law, endow,-
(a) the Municipalities with such powers and authority as may be necessary to enable them to function as institutions of self-government and such law may contain provisions for the devolution of powers and responsibilities upon Municipalities, subject to such conditions as may be specified therein, with respect to:-
I. the preparation ofplans for economic development and social justice;
II. the performance offunctions and the implementation of schemes as may be entrusted to them including those in relation to the matters listed in the Twelfth Schedule;
(b) the Committees with such powers and authority as may be necessary to enable them to carry out the responsibilities conferred upon them including those in relation to the matters listed in the Twelfth Schedule.
Now, the 12th Schedule of the Indian Constitution enumerates the following activities, in which our society is engaged,-
a) Public health, sanitation conservancy and solid waste management.
b) Safeguarding the interests of weaker sections of society, including the handicapped and mentally retarded.
c) Public amenities including street lighting, parking lots, bus stops and public conveniences.
2.6 As per Notification No. 12/2017- Central Tax (Rate), intra-State supply of services of description as specified are exempt 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 unless specified otherwise, subject to the relevant conditions.
