TaxTMI 
TaxTMI 
TaxTMI 
2023 (6) TMI 1049
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....urced services (hereinafter referred to as applicant), registered under the AP Goods & Services Tax Act, 2017. 3. Brief facts of the case 3.1 M/s. Andhra Pradesh Corporation for Outsourced Services (hereinafter referred as "APCOS") is registered taxpayer with GSTIN 37AASCA9533BIZH with effect from 15/07/2020 and having, its principal place of business located at NTR ADMINISTRATIVE BLOCK, 2nd FLOOR, P. N. Bus stand, Vijaywada, Krishna, Andhra Pradesh, 520013, is providing manpower supply services (SAC 998519) to various government departments, corporations, municipalities and other public institution in the state of Andhra Pradesh. 3.2 Andhra Pradesh Corporation for Outsourced Services (APCOS) is established in accordance with G. O. Ms. No. 126 dated 18/10/2019, which is incorporated under section 8 of the Companies Act, 2013, as a not-for-profit company, to achieve the following outcomes: i Removal of private outsourcing agencies / middle men ii Corruption free outsourcing manpower placement for all Government departments / organizations. iii 50% reservation for SC's / ST's / BC's & Minorities and 50% reservation for women. iv Timely and full payment of salar....
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....der Central jurisdiction i.e, Krishna Lanka Circle, Amaravathi Division. Accordingly, the application has been forwarded to the jurisdictional officer and a copy marked to the Central Tax authorities to offer their remarks as per Sec. 98(1) of CGST /APGST Act 2017. In response, remarks are received from the central jurisdictional officer concerned stating that no proceedings lying pending with the issue, for which the advance ruling sought by the applicant. 5. Brief facts of the case 5.1 The applicant submits the following in support of their arguments : Fact No. 1: As per the G.O Ms No. 126 and G.O.Ms.No. 136, APCOS is a single point solution for the manpower requirements of all the governmental organizations, departments, and corporations. The exact scope of operations of APCOS can be ascertained from various documents, and practices followed by various entities. Some of the salient features to be considered here are as under. 1) APCOS is not an agency that recruits manpower for the government entities. The recruitments of manpower arc being made by the respective governmental departments, corporations etc. APCOS is not involved in any of the process of calling for the inte....
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....cal Bodies, etc., discharging those functions 6. Applicant's Interpretation of Law: 1. APCOS is of the opinion that the supply of manpower supply services to the departments mentioned above is "pure service" as the aforesaid services are listed in 11th and 12th schedule of the constitution as a function pertaining to panchayats and municipality respectively and as per the definition, it qualifies as "pure services" and that their scope of services involve no supply of materials or any construction activities, Hence The same is eligible for GST exemption. 2. The applicant submits That, notification No. 12/2017- Central Tax (Rate) dated 28-06-2017 as amended stipulates at SI.No 3 of the notification that GST rate is NIL. on "PURE SERVICES" which is extracted here as under : In exercise of the powers conferred by sub-section (1) of section 11 of the Central Goods and Services Tax Act, 2017 (12 of 2017), The Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby exempts the intra-State supply of services of description as specified in column (3) of the Table below from so much of the Central Ta....
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.... State Legislature; or 3 (ii) established by any Government, with 90 per cent, or more participation by way of equity or control, to carry out any function entrusted to a Municipality under article 243 W of the Constitution or to a panchayat under article 243G of the Constitution. (zfa) "Government Entity" means an authority or a board or any other body including a society, trust, corporation, (i) set up by an Act of Parliament or State Legislature; or (ii) established by any Government, with 90 per cent, or more participation by way of equity or control, to carry out a function entrusted by the Central Government, State Government, Union Territory or a local authority.". 5. The applicant further states that, vide Notification No. 16/2021 - Central Tax (Rate) dated 18-11-2021, GOI has made amended the rate notification 12/2017 (Central Rate) and the same can be read as: In exercise of the powers conferred by sub-sections (3) and (4) of section 9, subsection (1) of section 11, sub-section (5) of section 15 and section 148 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on being satisfied that it is necessary in the public interest so ....
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....presentative, CA. Sivaprasad Annavarapu attended and reiterated the submissions already made. 8. Discussion and Findings: We have examined the issues raised in the application in light of the facts and arguments submitted by the applicant. We have considered the submissions made by the applicant in their application for advance ruling. We have considered the issues involved from which advance ruling is sought by the applicant and the relevant facts along with arguments made by the applicant and also their submissions made during the time of the personal hearing. Now we examine the issue, whether the services of manpower supply services to various Government authorities and Government entities provided by the applicant, ie., APCOS is eligible for exemption from GST, as per Notification Number 12/2017-Central Tax (Rate) New Delhi, dated 28th June, 2017 as amended vide notification 16/2021-Central tax (rate) dated 18-11-2021 being pure services, as per the definition and the services rendered thereby being listed in article 243G and 243W of Constitution as functions pertaining to panchayat and municipality. Now, we invite attention to the relevant portion of the aforementioned not....
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.... pure services. In the instant case, the applicant is mainly involved in the supply of manpower services to various government departments as stated above, which can be categorized as pure services, thus satisfying the first condition. The second condition to be verified is whether the entities mentioned at para 5.1 above are Central Government or State Government or Local authority. In this regard, definitions of the same as per the CGST Act, 2017 are as under: (i) As per Section-2(53) of the CGST, Act, 2017, "Government" means the Central Government. (ii) As per Section-2(53) of the CGST, Act, 2017, "Government" means the State Government. (iii) "local authority" means ,- (a) a "Panchayat" as defined in clause (d) of article 243 of the Constitution; (b) a "Municipality" as defined in clause (e) of article 243P of the Constitution; (c) a Municipal Committee, a Zilla Parishad, a District Board, and any other authority legally entitled to, or entrusted by the Central Government or any State Government with the control or management of a municipal or local fund; (d) a Cantonment Board as defined in section 3 of the Cantonments Act 2006; (e) a Regional Council or a Di....
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....sses, fees and charges levied under any law for the time being in force other than this Act, the State Goods and Services Tax Act, the Union Territory Goods and Services Tax Act and the Goods and Services Tax (Compensation to States) Act, if charged separately by the supplier; (b) any amount that the supplier is liable to pay in relation to such supply but which has been incurred by the recipient of the supply and not included in the price actually paid or payable for the goods or services or both; (c) incidental expenses, including commission and packing, charged by the supplier to the recipient of a supply and any amount charged for anything done by the supplier in respect of the supply of goods or services or both at the time of, or before delivery of goods or supply of services; (d) interest or late fee or penalty for delayed payment of any consideration for any supply; and (e) subsidies directly linked to the price excluding subsidies provided by the Central Government and State Governments. Explanation.- For the purposes of this sub-section, the amount of subsidy shall be included in the value of supply of the supplier who receives the subsidy. (3) The value of th....
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....ever, the following documentary evidences viz., the GO issued by government stating the objectives for which the applicant is formed by APCOS, the periodical invoices being raised by APCOS on various departments, the placement intimation letters being issued by the applicant stating that they are placing the staff in the concerned department are neither consistent with the contentions of the applicant nor conclusive and hence the contentions cannot be considered tenable. The applicant has filed invoice issued to the service recipients with the following details: (i) remuneration (ii) EPF (iii) ESI (iv) welfare fund As per section 15 of the GST act, the total value of the supply includes all the above and 18% GST is leviable on the entire amount (total of remuneration +EPE +ESI + welfare fund) and not just welfare fund as contended by the applicant. In view of the foregoing we rule as under: RULING (Under Section 98 of Central Goods and Services Tax Act, 2017 and the Andhra Pradesh Goods and Services Tax Act, 2017) Question: Based on the facts submitted in Fact A above, as per section 15 of GST Act, what is the value of the supply of the services rendered by AP....