GST Exemption Denied for Manpower Services Application

The application filed by M/s Hubli Dharwad Municipal Corporation regarding the exemption of GST on Man Power services provided by KEONICS and GEMINI SECURITY AND ALLIED SERVICES was rejected as "inadmissible" under Section 98(2) of the CGST Act 2017. The Authority for Advance Rulings determined that as the applicant was a recipient of services, not a supplier, they were ineligible to seek an advance ruling on the GST exemption. The ruling clarified that references to the CGST Act also encompass provisions in the KGST Act and highlighted the necessity for applicants to be registered or seeking registration under the CGST Act to seek advance rulings.

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Issues:
1. Admissibility of the advance ruling application filed by M/s Hubli Dharwad Municipal Corporation regarding the exemption of GST on the supply of Man Power services provided by KEONICS and GEMINI SECURITY AND ALLIED SERVICES.

Analysis:
The case involved an application for an advance ruling by M/s Hubli Dharwad Municipal Corporation (HDMC) seeking clarification on the exemption of GST on the supply of Man Power services provided by KEONICS and GEMINI SECURITY AND ALLIED SERVICES. The applicant was a recipient of services, not a supplier of goods or services. The Authority for Advance Rulings examined the admissibility of the application as per Section 95 (a) and (c) of the CGST Act 2017. It was established that only a person registered or desirous of obtaining registration under the CGST Act 2017 can seek an advance ruling in relation to the supply of goods or services. Since HDMC was a recipient of services and not a supplier, the application was deemed inadmissible under Section 98(2) of the CGST Act 2017.

The Authority clarified that the provisions of the CGST Act 2017 and the KGST Act 2017 are similar in most aspects and differ only on specific provisions. The ruling highlighted that unless explicitly mentioned, a reference to the CGST Act would also encompass similar provisions in the KGST Act. The applicant's representative appeared for the personal hearing and reiterated the facts stated in the application. The Authority considered both the written application and the oral submissions during the hearing before reaching a decision.

In conclusion, the Authority ruled that the application filed by M/s Hubli Dharwad Municipal Corporation was rejected as "inadmissible" under Section 98(2) of the CGST Act 2017. The ruling emphasized that since the applicant was a recipient of services and not a supplier, they were not eligible to seek an advance ruling regarding the exemption of GST on the Man Power services provided by KEONICS and GEMINI SECURITY AND ALLIED SERVICES.

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