No GST Exemption available on ‘Supply of ManPower Services’: AAR [Read Order]

Man Power Services - AAR - Taxscan

The Rajasthan Authority for Advance Ruling (AAR) ruled that no exemption available on the supply of manpower services.

The applicant is a sole proprietor of M/S M. D. Enterprises. The total turnover of the applicant for the financial year 2018-19 was INR 17.75 Lakhs. The applicant is unregistered under the provisions of the CGST Act, 2017 as on date due to the fact of turnover being less than the threshold limit for registration.

The applicant is in the business of supply of manpower falling under SAC 99851. During FY 2019-20, the applicant supplied labour to one of his clients for the purpose of working in agriculture farms. According to the submissions, the recipient of the service of supply of farm labour is the sole owner of agriculture land. Besides, the recipient is the owner of a few immovable properties, which are used for renting purposes.

The bench constituting Additional commissioner, J.P Meena, and Joint Commissioner, Hemant  Jain on the application filed by M/s M.D. Enterprises.

The Authority finds that Chapter heading 9985 is for Support Services other than agriculture and includes in general, manpower supply for various works. The support services supplied by the applicant are classified under SAC 99851.

The bench further stated that the applicant’s contention that she being a supplier of manpower services under SAC 99851 is exempted from GST is not valid (A-as farm labour supply services are classified under Chapter head 9986. At-4 61) .

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