In re Sree Vinayaka Enterprises (GST AAR Karnataka)
1. Whether the applicant is correct in classifying the services provided to the Government entities as exempted services?
The applicant is incorrect in classifying the manpower services provided to the organisations/ institutions as exempted services since the same is not provided by way of any activity in relation to any function entrusted to a Panchayat under article 243G of the Constitution or in relation to any function entrusted to a Municipality under article 243W of the Constitution.
2. Whether the applicant is correct in claiming exemption under Sl. No. 3 of Notification 12/2017 dated 28th June 2017 for the said exempted services?
The applicant is incorrect in claiming exemption under Sl.No.3 of Notification 12/2017 dated 28th June 2017 for the said services, since the services provided by the applicant are not covered under the said entry and therefore are not exempted.
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, KARNATAKA
ORDER UNDER SECTION 98(4) OF THE CGST ACT, 2017
& UNDER SECTION 98(4) OF THE KGST ACT, 2017
M/s. Sree Vinayaka Enterprises, 512, 2nd, C Main, 11th Block, Nagarabhavi, Bangalore-560072 having GSTIN 29ADIPK7762Q1ZJ have filed an application for Advance Ruling under Section 97 of CGST Act, 2017 read with Rule 104 of CGSTs Rules, 2017 and Section 97 of KGST Act, 2017 read with Rule 104 of KGST Rules, 2017 in FORM GST ARA-01 discharging the fee of Rs.5,000/- each under the CGST Act and the KGST Act.
2. The Applicant is a Proprietorship concern registered under the provisions of Central Goods and Services Tax Act, 2017 as well as Karnataka Goods and Services Tax Act, 2017 (hereinafter referred to as the CGST Act and KGST/SGST Act respectively). The applicant is engaged in the business of providing manpower supply to various government and non-governmental organisations.
3. The applicant has sought advance ruling in respect of the following questions:
1. Whether the applicant is correct in classifying the services provided to the Government entities as exempted services?
2. Whether the applicant is correct in claiming exemption under Sl. No. 3 of Notification 12/2017 dated 28th June 2017 for the said exempted services?
4. Admissibility of the application: The question is about “classification of any goods or services or both” and “applicability of a notification issued under the provisions of this Act” and hence is admissible under Section 97(2)(a) and 97(2)(b) of the CGST Act 2017.
5. Brief Facts Of The Case: The applicant furnishes some facts relevant to the issue:
5.1 The Applicant states that they are engaged in the business of providing manpower supply services to various government and non-government organisations. Manpower supply services include supply of workforce of both skilled and unskilled for security, housekeeping, catering etc. Majority of the services are rendered to Central / State Government and public sector undertakings like ISRO, Central University of Karnataka.
5.2 The applicant states that they have entered into various contracts with government and public sector undertakings for supply of security and housekeeping staffs as listed below:
