Man power supply service to govt, Goods and Services Tax - GST

[PK Rattan]

In Chandigarh Administration, works relating to Public Health Services have been notified both under Engineering department of Chandigarh Administration and Municipal Corporation.

My Query is

1) Whether Man Power contracts executed by officers of Chandigarh Administration for Pure Services in respect of Public Health works under Engineering Department of Chandigarh Administration are exempted from GST, TDS ?

2) And on the other hand similar Man Power Contracts executed by Officers of Municipal Corporation in respect of Public Health works meant for MC, Chandigarh being executed under MC are exempted from GST TDS ?

[Pavan Mahulkar]

Dear Sir,

Pure services (excluding works contract service or other composite supplies involving supply of any goods) provided to the Central Government, State Government or Union territory or local authority or a Governmental authority or Government entity,(amended vide Notification 2/2018)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. (Entry 3 of Notification 12/2017(CGST Rates)). is exempted

As the public health sector is the subject entrusted in 243G/243W

Hence in your case the supply is exempted

[DR.MARIAPPAN GOVINDARAJAN]

Exempted please.

[Ganeshan Kalyani]

I agree with the views of the experts.

[Ganeshan Kalyani]

Refer Notification no.12/2017-central tax rate dated 28.06.2017.

AI Summary

Manpower supply exemption for government public health services: GST not leviable where services relate to municipal or panchayat functions. Manpower supply contracts that are pure services provided to government entities for activities relating to functions entrusted to Panchayats or Municipalities are exempt from GST where they are not works contracts or composite supplies involving goods; the forum responses applied that exemption to public health services supplied by both the Chandigarh Administration's Engineering Department and the Municipal Corporation, citing the relevant central GST notification entry (as amended) as the basis for non levy of GST.