No GST exemption on Services of providing Para-medical Administrative, Technical, other Staff on Outsource basis: AAR [Read Order]

GST exemption - Para-medical Administrative - Outsource basis - AAR - Taxscan

The Gujarat Authority of Advance Ruling (AAR) ruled that services of providing Para-medical Administrative, Technical, other Staff on Outsource basis are not exempted.

The applicant, M/s Vishv Enterprise is engaged in the business of contract work services of Manpower Recruitment & Supply by outsourcing in the Government Department. There is a matter which needs clarification regarding the applicability of GST on the supply of contract work service of Man-Power and Housekeeping in Government Municipal Corporation, Government Hospital, and any other Government Department.

There is an issue regarding payment of GST amount with Ahmedabad Municipal Corporation Seth L.G. Hospital, Maninagar, Ahmedabad. They regularly place their contract service bill with 9%CGST and 9% SGST but they are not ready to pay and respond that they are not in the category to pay GST. There is an exemption to service to Municipality under Article 243W & Panchayat under Article 243G.

Now, they are confused that either said services are exempted or not? Therefore, they requested to provide them some evidence so they can give Seth L.G. Hospital and ask for their pending payment which has not been released from April, 2019. They have also submitted a copy of the letter dated 16.08.2019 given by Seth L.G. Hospital.

The applicant sought advance ruling on the issue of whether services of providing Para-medical Administrative, Technical and other Staff on Outsource basis to Seth L.G. General Municipal Hospital are exempted or not.

The coram consisting of Sanjay Saxena and Mohit Agarwal held that the exemption is not available to the applicant in respect of the supply of manpower services viz. Para-medical Administrative, Technical and other Staff on Outsource basis made to Seth L.G. General Municipal Hospital in terms of Serial No 3 of the Notification No. 12/2017- Central Tax (Rate) dated June 28, 2017.

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