The Karnataka Authority of Advance Ruling (AAR) ruled that no GST is payable on landscaping, gardening work provided to Government Departments if the value of goods is not more than 25% of total contract value.
The applicant, Narayanappa Ramesh is a registered person under the provisions of the Central Goods and Services Tax Act, 2017 as well as the Karnataka Goods and Services Tax Act, 2017 engaged in the landscaping and gardening work and maintenance of community assets provided to the government departments.
The applicant has sought the advance ruling on the issue whether the landscaping and gardening work provided to government departments like Nagarasabha Karyalaya Chintamani, Nagarasabha Karyalaya Bhadravathi, Tumakuru Mahanagara Palike, Nagarasabha Raichur, Purasabha Karyalaya Devanahalli, Mahanagara Palike Shivamogga etc., attract GST.
The applicant stateD that he is affecting landscape development and maintenance of gardens. The applicant has not provided any details of the quantum of the involvement of goods in each of these contracts and for the sake of argument, it is assumed that the value of such supply of goods is less than 25% in order to satisfy the conditions provided in the Notification.
The Coram of Dr. M.P.Ravi Prasad and Mashood Ur Rehman Farooqui ruled that The landscaping and gardening work provided to Nagarasabha Karyalaya Chintamani, Nagarasabha Karyalaya Bhadravathi, Tumakuru Mahanagara Palike, Nagarasabha Raichur, Purasabha Karyalaya Devanahalli, Mahanagara Palike Shivamogga, is exempted under entry 3A of the Notification No.12/2017 Central Tax (Rate) dated 28.06.2017 as amended by Notification No.2/2018 – Central Tax (Rate) dated January 25, 2018 provided that the value of goods supplied is not more than 25% of the total contract value and the recipients of services are Central or State Government Departments or a local authority or a Government Entity or Authority as per the definitions provided in the concerned notifications.
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