No GST on Service of providing Manpower to Municipal Corporation for collecting Vehicle Parking Fees: AAR [Read Order]

GST - service - manpower - Municipal Corporation - vehicle parking fees - AAR - Taxscan

The Maharashtra Authority of Advance Ruling (AAR) held that the GST is not applicable on  service of providing manpower to the Municipal Corporation for collecting vehicle parking fees.

The Applicant, M/s. Work Group Sushikshit Berojgar Nagrik Sewa Sahkari Sanstha Maryadit Amravati provides services to the government regarding supply of manpower for cleaning the public urinals, collecting parking fees from the hawkers and common people, electricity meter reading, etc.

The manpower belongs to the economically weaker sections of society such as scheduled caste and scheduled tribes.

The applicant has sought the advance ruling on the classification of any goods or services or both, applicability of a notification issued under the provisions of this Act and Determination of the liability to pay tax on any goods or services or both.

The coram consists of T.R. Ramnani and P.Vinitha Shekhar ruled that the services provided by the Applicant are covered under Clause 1 & 2 of Twelfth Schedule of Article 243W which relates to the pure services (excluding works contract service or other composite supplies involving supply of any goods) provided to a Governmental Authority by way of any activity in relation to any function entrusted to a Panchayat or Municipality.

The AAR ruled that  except for the service of providing manpower to the Amravati Municipal Corporation for collecting vehicle parking fees, the other services provided by the applicant will not fall under Entry No. 3 of Exemption Notification No. 12/2017 dated 28th June, 2017.

The AAR further clarified that the services provided by the applicant does not fall within the government works contract services.

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