2022 (8) TMI 809

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....ed to as the CGST Act and KGST/SGST Act respectively). The Applicant is engaged in providing manpower services. They are proposing to submit a bid in response to the tender floated by the Department of Horticulture, Government of Karnataka for certain services. 3. The applicant has sought advance ruling in respect of the following questions: i. Whether the services proposed to be provided by it to the Department of Horticulture for cleaning and sweeping of lawns and garden path areas and segregation and transport of the garbage are liable for GST, and if yes, then at what rate? ii. Whether the services proposed to be provided by it to the Department of Horticulture for supply of manpower for garden maintenance on outsource basis to the Department of Horticulture are liable for GST, and if yes, then at what rate? 4. Admissibility of the application: The question is about the "determination of the liability to pay tax on any goods or services or both" and hence is admissible under Section 97(2) (e) of the CGST Act 2017. 5. BRIEF FACTS OF THE CASE: The applicant furnishes some facts relevant to the issue: 5.1 The applicant states that their proposed activ....

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....e of this work is issued by the Office of the Assistant Director of Horticulture, Karnataka Sin Horticulture Garden, Ooty. 5.6 The applicant states that there is no supply of or transfer of property in goods involved whatsoever in both cases. That being the case, the supply is comprised purely of services and therefore would be a "pure service". 5.7 The applicant states that the Department of Horticulture, is a Government Department of the State of Karnataka, and therefore falls within the definition of "government" as per Section 2(53) of the Karnataka Goods and Services Tax Act, 2017. 5.8 The services provided are in relation to the maintenance of parks, which falls within the ambit of "provision of urban amenities and facilities such as parks, gardens, playgrounds", which is an activity covered under the Twelfth Schedule, falling within the purview of Article 243W of the Constitution of India. 5.9 The applicant has submitted the text of Article 243W and the Twelfth Schedule as 243W. Powers, authority and responsibilities of Municipalities, etc. Subject to the provisions of this Constitution, the Legislature of a State may, by law, endow (a)....

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....-08-2017, on a similar factual matrix, the Ld. Authority for Advance Ruling (Karnataka) has held that the service of maintenance of parks provided by the applicant in that case to the State Government, Central Government or local authority, not involving a transfer of property in goods either as a component of works contract or a composite supply is covered under Entry No.3 of the Notification No.12/2017 Central Tax (Rate) dated 28-06-2017 and hence exempt. PERSONAL HEARING / PROCEEDINGS HELD ON 07-07-2022 7. Ms. Shankari, Advocate and Duly Authorised Representative appeared for personal hearing proceedings held on 07-07-2022 and reiterated the facts narrated in their application. FINDINGS & DISCUSSION 8. At the outset we would like to make it clear that the provisions of CGST Act, 2017 and the KGST Act, 2017 are in pari-materia and have the same provisions in like matter and differ from each other only on a few specific provisions. Therefore, unless a mention is particularly made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the KGST Act. 9. We have considered the submissions made by t....

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....stitution Nil Nil 13.1 From the above said entry of the notification it is observed that, in order to claim exemption on supply of services two conditions should be satisfied: 1. Pure Services (excluding works contract service or other composite supplies involving any goods) provided to the Central Government, State Government or Union territory or local authority or a Governmental authority. 2. 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? Now we examine whether the applicant satisfies these above two conditions to claim exemption under the said notification. 13.2 243G- Powers, authority and responsibilities of Panchayats subject to the provisions of this Constitution the Legislature of a State may, by law, endow the Panchayats with such powers and authority and may be necessary to enable them to function as institutions of self-government and such law may contain provisions for the devolution of powers and responsibilities upon Panchayats, at the appropriate level, subject to such c....

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.... specified therein, with respect to (i) the preparation of plans for economic development and social justice; (ii) the performance of functions and the implementation of schemes as may be entrusted to them including those in relation to the matters listed in the Twelfth Schedule; There are 18 items in the twelfth schedule of the Constitution which are as below: 1. Urban planning including town planning. 2. Regulation of land-use and construction of buildings. 3. Planning for economic and social development. 4. Roads and bridges. 5. Water supply for domestic, industrial and commercial purposes. 6. Public health, sanitation conservancy and solid waste management. 7. Fire services. 8. Urban forestry, protection of the environment and promotion of ecological aspects. 9. Safeguarding the interests of weaker sections of society, including the handicapped and mentally retarded. 10. Slum improvement and upgradation, 11. Urban poverty alleviation. 12. Provision of urban amenities and facilities such as parks, gardens, playgrounds. 13. Promotion of cultura....