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 which are eligible for exemption under Entry no. 3 of the Central Tax Rate.
M/s. Indian Security and Personnel Arrangements, the applicant engaged in the activities of cleaning and sweeping of lawns and garden path areas, segregation and transport of the garbage and supply of manpower for garden maintenance are intended to be provided to the Government Department of the State of Karnataka, the Department of Horticulture.
The applicant stated that the work undertaken by the Horticulture Department was to ensure that the gardens are aesthetically beautiful, provide excellent ambience and provide an authentic environment for visitors and the public.
Further stated that the Department of Horticulture would fall within the definition of “Government” for GST and as such, pure service received by it would be exempt from GST by the following provisions/notifications.
The requirements stipulated as per the tender documents include workers, auto tippers and a garbage compactor and there was no transfer of property in goods involved in this contract. In the case of the supply of manpower for maintenance also, the requirement was only to deploy a certain number of contract personnel for the work.
It was evident that the applicant was providing manpower services for cleaning and sweeping of lawns and garden path areas, segregation and transport of the garbage in Cubbon Park and maintenance of the garden in Siri Horticulture Garden, Ooty, Tamilnadu, about the function entrusted to a municipality under article 243W of the constitution which covered by 12th entry of twelfth schedule which says ‘Provision of urban amenities and facilities such as parks, gardens, playgrounds’.
The Tribunal observed that the applicant satisfies the two conditions to claim an exemption under Entry No. 3 of Notification No. 12 of 2017 (Central Tax Rate), dated: 28.06.2017.
Dr M.P. Ravi Prasad, Additional Commissioner of Commercial Taxes Member (State) and Sri. T. Kiran Reddy, Additional Commissioner of Customs & Indirect Taxes Member (Central) observed that the services proposed to be provided by the Applicant for cleaning and sweeping of lawns and garden path areas and segregation and transport of the garbage and supply of manpower for garden maintenance on the outsourcing basis are liable for GST at NIL rate as per Entry No. 3 of Notification No.12 of 2017 (Central Tax Rate). The applicant was represented by Ms Shankari.
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