Applicant's Services Excluded from GST Exemptions; Not Government Works Contract; 12% Tax Rate Applies

The services provided by the Applicant were found not to be covered under Clause 1 & 2 of the Twelfth Schedule of Article 243W. Except for providing manpower to the Amravati Municipal Corporation for collecting vehicle parking fees, the other services did not qualify for exemption under Entry No. 3 of Exemption Notification No. 12/2017. Additionally, the services provided did not fall within the Government Works Contract Services subject to the amended GST rate of 12% under Notification No. 20/2017.

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Issues Involved:
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.

Detailed Analysis:

Issue 1: Coverage under Clause 1 & 2 of Twelfth Schedule of Article 243W
- The applicant's activities, such as providing manpower for cleaning, collecting rent from hawkers, and collecting parking fees, do not fall under "Urban planning including town planning" or "Planning of land-use and construction of buildings" as per Clauses 1 & 2 of the 12th Schedule to Article 243W of the Constitution.
- MSEDCL and Maharashtra Jeevan Pradhikaran are not municipalities; hence, services provided to them do not fall under Clause 1 & 2 of Article 243W.
- Conclusion: The services provided by the applicant are not covered under Clause 1 & 2 of the Twelfth Schedule of Article 243W.

Issue 2: Exemption under Notification No. 12/2017
- For services to be exempt under Entry No. 3 of Notification No. 12/2017, they must be pure services provided to the government or a local authority in relation to functions entrusted to a Panchayat or Municipality under Articles 243G or 243W.
- The applicant provides pure services to entities like the Amravati Municipal Corporation, MSEDCL, and Maharashtra Jeevan Pradhikaran, which qualify as government entities.
- Services like providing manpower for collecting parking fees for the Amravati Municipal Corporation fall under public amenities and are eligible for exemption.
- Services like collecting rent from hawkers and other services provided to MSEDCL and Maharashtra Jeevan Pradhikaran do not qualify for exemption as they are not related to functions under Articles 243G or 243W.
- Conclusion: Except for the service of providing manpower to the Amravati Municipal Corporation for collecting vehicle parking fees, other services do not fall under Entry No. 3 of Exemption Notification No. 12/2017.

Issue 3: Applicability of GST rate as per Notification No. 20/2017
- The applicant provides composite supplies of works contract to MSEDCL, which do not fall under the specified categories in Notification No. 20/2017.
- There is no "works contract" as defined in clause (119) of section 2 of the CGST Act, 2017, since there is no contract for building, construction, or other activities involving immovable property.
- Conclusion: The services provided by the applicant do not fall within the Government Works Contract Services on which GST rate was amended to 12% in Notification No. 20/2017.

Order:
1. The services provided by the Applicant are not covered under Clause 1 & 2 of Twelfth Schedule of Article 243W.
2. Except for the service of providing manpower to the Amravati Municipal Corporation for collecting vehicle parking fees, other services provided by the applicant do not fall under Entry No. 3 of Exemption Notification No. 12/2017.
3. The services provided by the applicant do not fall within the Government Works Contract Services on which GST rate was amended to 12% in Notification No. 20/2017.

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