2024 (2) TMI 170

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....nt, KPTCL, Railway Department etc. 3. The applicant has sought advance ruling in respect of the following question:- 1. Whether the pure services provided to Zilla panchayat (social welfare department) and Taluk Panchayat are exempted under Article 243G of the constitution. However, during the personal hearing, duly authorized representative of the Applicant has requested to amend the question as below and has submitted a letter for the same:- 1. Whether the supply of manpower services to Zilla Panchayat (Social Welfare Department) and Taluka Panchayat are exempted from GST under Sl. No. 3 of the Notification No. 12/2017-Central Tax (Rate) as Pure Services? 4. Admissibility of the application : The question is about "Determination of the liability to pay tax on any goods or services or both", which are covered under Sections 97(2)(e) respectively 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 they are providing manpower services to Zilla Panchayat, Taluk Panchayat, Forest Department, KPTCL, Railway Department. The nature of manpower services provided are in the form of 'C' G....

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....submissions made during the time of hearing. 9. The applicant states that they are providing manpower services to educational institutions run by Social Welfare Department, Backward Classes Welfare Department, Forest Department, KPTCL, Railway Department etc. The nature of manpower services provided are in the form of 'C' Group and 'D' Group, teachers, Data Entry Operators, Staff Nurse, Typists, Cooks, Assistant Cooks, Watchman, Cleaning Staffs etc. 9.1 The Applicant has provided few copies of work orders given by the Office of Deputy Commissioners of different districts. After going through the same it is observed that, the Applicant has to provide manpower for the posts of FDA, SDA, teachers, Typists, Cooks, Assistant Cooks, Watchman, Cleaning staffs, staff nurse, drivers etc to the residential schools, colleges or hostels run by Social Welfare Department/ Backward Classes Welfare Department of Government of Karnataka. The Applicant is of the opinion that they are providing pure services to Social Welfare Department/Backward Classes Welfare Department through Zilla panchayat/Taluk Panchayat and hence exempted from GST as per entry no. 3 of the Notification No. 1....

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....Social welfare department or Backward Classes Welfare Department of Karnataka Government which is nothing but State Government and hence the first conditioned mentioned supra is satisfied. 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 conditions as may be specified therein, with respect to,- (a) The preparation of plans for economic development and social justice; (b) The implementation of schemes for economic development and social justice as may be entrusted to them including those in relation to the matters listed in the Eleventh Schedule. Matters listed in Eleventh schedule are:- 1. Agriculture, including agricultural extension. 2. Land improvement, implementation of land reforms, land consolidation and soil conservation. 3. Minor irrigation, water management and watershed development. 4. ....

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..... 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 cultural, educational and aesthetic aspects. 14. Burials and burial grounds; cremations, cremation grounds and electric crematoriums. 15. Cattle pounds; prevention of cruelty to animals. 16. Vital statistics including registration of births and deaths. 17. Public amenities including street lighting, parking lots, bus stops and public conveniences. 18. Regulation of slaughter houses and tanneries. 11. The applicant is providing manpower services like FDA, SDA, Typists, drivers Data Entry Operator, "D" Group etc to Zilla Panchayat/Taluk Panchayat/ Social welfare department/Backward Classes Welfare Department. But these manpower services are not provided 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. Hence provision of suc....