The Karnataka Authority for Advance Ruling held that supply of manpower services to zila panchayat and taluk panchayat attracts 18% Goods And Service Tax ( GST ).
The applicant Manish Manpower Agency is a registered partnership firm and they provide manpower services to zilla panchayath, taluk panchayat and forest department.
The applicant has sought an advance ruling in respect of the following question: Whether the supply of manpower services to zilla panchayath, taluk panchayat are exempted from GST?
Linkara M Pujari on behalf of the applicant submitted that they are providing manpower services to educational institution under zila panchayat like social welfare department and these services are exempted from GST under Sl.No 3 of Notification No.12/2017-Central Tax ( rate ) dated 28 june 2017 as pure service.
During the discussion the authority observed that the applicant is providing manpower services like FDA, SDA, Typist, drivers, data entry operators D group etc to zil panchayat, taluk panchayat, social welfare department. But this manpower services are not provided by way of any activity in relation to any function entrusted to a panchayat under 243G of the constitution or any relation to any function entrusted to a municipality under 243W of the constitution. Hence provision of such manpower service is liable to tax at 18%.
The two member bench of Authority of Advance Ruling, M.P Raviprasad ( Member ) and Kiran Reddy T ( Member ) held that supply of manpower services to zila panchayat and taluk panchayat attracts 18% Goods And Service Tax ( GST ).
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