The Appellate Authority of Advance Ruling (AAAR) in Karnataka ruled that Goods and Service Tax (GST) is applicable to landscape development and maintenance of garden work for government undertakings as it is covered under subcontract work.
The applicant, M/s The Nurserymen Co-operative Society s is in the business of maintaining the gardens and landscape development for State and Central Governments, local bodies, and government undertakings. He also stated that he has been providing pure services excluding works contract services and other composite supplies not involving any goods to these recipients of services and the same is exempted by way of serial no. 3 of the Notification dated June 28, 2017.
Now, the applicant is sub-contracting this work to the sub-contractors and the issue raised is whether such sub-contract work is liable to tax under the GST Act.
The applicant sought for an advance ruling on the issue of whether the landscape development and maintenance of garden work for State and Central Government Departments, all government local bodies (Municipalities and Corporations), etc. and other government undertakings through a contract from sub-contracts attract GST as inward supplies from those vendors.
The AAR had ruled that Goods and Service Tax (GST) is applicable to landscape development and maintenance of garden work for government undertakings as it is covered under subcontract work.
“Even after assuming the activity of the applicant being either covered in entry no.3 or entry no.3A of the Notification No.12/2017- Central Tax (Rate) dated 28.06.2017 (as amended), the activity supply by the sub-contractor to the applicant of execution of the sub-contract work of the said activity would not be exempt as it is not covered either in entry no.3 or entry no.3A of the Notification No.12/2017- Central Tax (Rate) dated 28.06.2017 (as amended), as the applicant being the recipient of such service is not covered under the class of recipients enumerated in the said entries,” the AAR said.
The Appellate Authority of Advance Ruling (AAAR) while upholding the ruling of the AAR held that Goods and Service Tax (GST) is applicable to landscape development and maintenance of garden work for government undertakings as it is covered under subcontract work.
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