GST not applicable on services provided to Horticulture Department for cleaning and sweeping of lawns: AAR
The applicant viewed that since the horticulture department came under the 'government', the jobs undertaken were covered
GST not applicable on services provided to Horticulture Department for cleaning and sweeping of lawns: AAR
The applicant viewed that since the horticulture department came under the 'government', the jobs undertaken were covered under the Indian Constitution
The Karnataka Authority for Advance Rulings (AAR) has held that cleaning and sweeping lawns and garden paths and the supply of manpower provided to the government are pure services. These are eligible for exemption under the Goods and Services Tax (GST)
The applicant, Indian Security and Personnel Arrangements, is engaged in the activities of cleaning and sweeping lawns and garden path areas, segregation and transporting the garbage, and supply of manpower for garden maintenance. The services are provided to the State of Karnataka, the Department of Horticulture.
The applicant stated that the job of the horticulture department was to ensure that the gardens were aesthetically beautiful, and provided an excellent ambience, and a healthy environment for visitors. It further stated that the Department of Horticulture came under the definition of the 'government.' Therefore, the services received by it would be exempt from GST under the provisions.
Meanwhile, as per the tender documents, the requirements stipulated included workers, auto tippers and a garbage compactor. But no transfer of property in goods was involved in the contract. In the case of the supply of manpower for maintenance, the requirement was only to deploy a certain number of contract personnel.
It was evident that the applicant was providing manpower services for cleaning and sweeping of the lawns and garden path areas, segregation and transport of the garbage in Cubbon Park and maintenance of the garden in Siri Horticulture Garden, Ooty, Tamil Nadu. Therefore, the function entrusted to a municipality under the Indian Constitution covered 'Provision of urban amenities and facilities such as parks, gardens, playgrounds.'
The bench observed that the applicant satisfied the two conditions to claim an exemption under the Central Tax Rate of June 2017.
Thus, Dr. M.P. Ravi Prasad, Additional Commissioner of Commercial Taxes Member (State) and T. Kiran Reddy, Additional Commissioner of Customs & Indirect Taxes Member (Central) observed that the services provided by the applicant were liable for GST at a 'Nil' rate.