In re Indian Coffee Workers’ Cooperative Society limited (GST AAR Rajasthan)
AAR held that that activity of supply of manpower service for running & maintenance of the canteen for consideration in the course of business is covered under ‘supply’ as per section 7 of the CGST Act, 2017 and liable to tax as per section 9 of the CGST Act, 2017.
Further, this service is classified at heading No. 998514 “Temporary staffing service”. The explanatory notes of this heading is as under: –
998514 Temporary staffing services
This service code includes supplying personnel for temporary work assignments.
Note: The temporary staffing firm hires its own employees and assigns/supplies them to clients to support or supplement the client’s workforce in work situations such as employee absences, temporary skill shortages, seasonal workloads, and special assignments and projects. The employees are on the payroll of the temporary staffing firm which is legally responsible for their actions, but when working they are under the direct supervision of the client. The temporary staffing firm specifies the pay, benefits, etc. of the employee.
Keeping in view above explanatory notes and S. No. 16, 21 & 24 of the Service Purchase Order dated 28.09.2021 and ‘Bill of Quantity”, we are of the view that applicant is being supplied manpower service to NTPC, Anta for special assignments i.e. running & maintenance of the canteen. All the employees are on the payroll of the applicant which is legally responsible for their actions, but when working they are under the direct supervision of the client i.e. NTPC, Anta. The temporary staffing firm i.e. applicant specifies the pay, benefits, etc. of the employee.
In continuation to above, we can visit the Notification No. 11/2017-CT (Rate) dated 28.06.2017 (as amended). The same is reproduced as under:
