18% GST on Forward Charge basis for providing Manpower Services to Kuvempu University: AAR [Read Order]

GST - forward charge - Kuvempu University - AAR - taxscan

The Karnataka Authority of Advance Ruling (AAR) ruled that 18% GST is applicable on forward charge basis for providing manpower services to Kuvempu University.

The applicant, M/s KSF-9 Corporate Services Pvt. Ltd. is a Private Limited Company incorporated under the Companies Act, 1956 and entered into an agreement with Kuvempu University, Shivamogga to provide manpower supply for security and housekeeping services on contract basis.

The applicant company is registered under provisions of the GST Act, engaged in providing security services such as providing guards and manpower services and housekeeping service based on requirement of the customers and contract awarded.

The applicant has stated that they have entered into an agreement with Kuvempu University Shivamogga for providing security guards and housekeeping services on contract basis and the applicant was successfully awarded this contract through E-tender procurement bid.

The applicant has stated that the recipient of the services, i.e. Kuvempu University having its administrative Office at Jnana Sahyadri, Shankarghatta, Bhadravathi Taluk, Shivamogga District imparts education through regular and distance mode and having its territorial jurisdiction spreading over the districts of Shivamogga and Chickamaglur It was established in 1987 by the act of the Karnataka State legislature through amendment No. 28/1976 dated 29 January 1989 under the Karnataka State University Act 1976. The university offers undergraduate and graduate degree programs in a wide range of disciplines. It was recognized by UGC in 1994 and is metuber of the Association of Indian Universities (AIU).

The applicant has sought advance ruling in respect of the question as to Whether applicant should charge 18% GST for providing security guards and housekeeping services to Kuvempu University, Shivamogga.

The coram consists of Dr. Ravi Prasad and Mashood Ur Rehman Farooqui held that the applicant is liable to discharge GST at the rate 18% (9% CGST and 9% KGST) on forward charge basis for providing manpower services to Kuvempu University, Shivamogga.

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