2020 (2) TMI 551

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....d M/s. Ex-Man Security Service. Bilaspur (C.G.) which had quoted its financial bid rate without any GST. (III) The above firm M/s. Ex-Man Security Service, Bilaspur (C.G.) in response to the query by the applicant regarding non-inclusion of GST in its financial bid submitted a written response. The above firm asserted that its financial bid rate would be L-1 because of non-inclusion of GST in its bid rate. It stated that the institution receiving security services would have to pay applicable GST on. account of GST memo issued by the central government as on 1-1-2019 and that moreover educational institutions are exempted from payment of GST as per the government rules. It was further contended that the above firm M/s. Ex-Man Security Service, Bilaspur (C.G.) is providing security services to the Government Engineering College and Pt. Sunderlal Sharma University as per the above provisions, it has also referred to Notification No. 29/2018-Central Tax (Rate), dated 31-12-2018 and a letter regarding the main decisions taken by the GST Council.  3. Contention of the Applicant :- The applicant has mentioned following details regarding the case - (i) The app....

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....registered u/ s 51 for the purpose of deducting tax and not for making taxable supplies are exempt from the payment of GST. They submitted that the security services provided to university is not exempt from GST and the security service provider firms should include GST in their bills. 5.  The legal position, Analysis and Discussion :- 5.1 The provisions for implementing the CGST Act and CGGST Act, 2017 are similar. Now we sequentially discuss the provisions that are applicable in the present case. The applicant wants clarification as regards the applicability of GST under Notification No. 29/2018-Central Tax (Rate), dated 31-12-2018 on service provider, engaged in providing security service to University. Thus we have to analyse all the related aspects of the above notification like reverse charge, meaning of government department or establishment, GST liability on educational services, registration status of the applicant as a Tax Deductor u/s 51 of CGGST Act, 2017 and/or as a regular taxpayer. 5.2 Status of applicant : Hemchand Yadav Vishwavidyalaya or Hemchand Yadav University formerly Durg Vishwavidyalaya. is a State University in Durg, Chhattisgarh, India.....

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....ny mid-day meals scheme sponsored by the Central Government, State Government or Union territory; (iii)  security or cleaning or house-keeping services performed in such educational institution; (iv)  services relating to admission to. or conduct of examination by, such institution; up to higher secondary : Provided that nothing contained in entry (b) shall apply to an educational   institution other than an institution providing services by way of pre-school education and education up to higher secondary school or equivalent. Thus it gets amply clear that the services provided to an educational institution with regard to security services would be tax exempt in case educational institution is providing schooling till higher secondary. However, in case the same Security services are provided to educational institution providing higher education then it would be taxable under GST. Another aspect to be evaluated is regarding tax liability on provision of security services under forward charge or reverse charge in the light of Notification No. 29/2018-Central Tax (Rate), dated 31-12-2018. 5.7 Notification No. 29/2018-Central Tax ....

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....th the recipient of services. Relevant part of the aforesaid notification i.e. serial no. 14 and its entry related to the impugned question is reproduced here. Sl. No. Category of supply of Services Supplier of service Recipient of Service (1) (2) (3) (4) 14 Security services, (services provided by way of supply of security personnel) provided to a registered person : Provided that nothing in this entry shall apply to - (i)(a) a Department or Establishment of the Central Government or State Government or Union territory; or (b) local authority; or (c) Governmental agencies; which has taken registration under the Central Goods and Services Tax Act, 2017 (12 of 2017) only for the purpose of deducting tax under Section 51 of the said Act and not for making a taxable supply of goods or services. Any person other than a body corporate A registered person, located in the taxable territory." Proviso clearly elaborates that anything contained in entry 14 shall not apply to department or establishment of central or state, local authority or Govt, agencies which has taken registration under the....