Services of Cleaning and Sweeping Lawns and Garden paths attracts NIL GST: AAR [Read Order]

Services - cleaning and sweeping - GST - AAR - taxscan

The Authority for Advance Ruling (AAR), Karnataka ruled that Services of cleaning and sweeping lawns and garden paths attracts NIL GST.

M/s. Indian Security and Personnel Arrangements, is a Proprietorship concern registered under the provisions of Central Goods and Services Tax Act, 2017 as well as Karnataka Goods and Services Tax Act, 2017 (hereinafter referred to as the CGST Act and KGST/ SGST Act respectively). The Applicant is engaged in providing manpower services.

The applicant is engaged in activities like cleaning and sweeping of lawns and garden path areas, segregation and transport of the garbage and supply of manpower for garden maintenance are intended to be provided to the Government Department of the State of Karnataka i.e., The Department of Horticulture.

The applicant has sought advance ruling in respect of the following questions on whether the services proposed to be provided by it to the Department of Horticulture for cleaning and sweeping of lawns and garden path areas and segregation and transport of the garbage are liable for GST, and if yes, then at what rate ; whether the services proposed to be provided by it to the Department of Horticulture for supply of manpower for garden maintenance on outsource basis to the Department of Horticulture are liable for GST, and if yes, then at what rate?

M.P. Ravi Prasad Additional Commissioner of Commercial Taxes and T. Kiran Reddy Additional Commissioner of Customs and Indirect Taxes observed that “The applicant is providing manpower services for cleaning and sweeping of lawns and garden path areas, segregation and transport of the garbage in Cubbon Park and for maintenance of garden in Siri Horticulture Garden,Tamilnadu. This is in relation to function entrusted to a municipality under article 243W of the constitution which is covered by 12th entry of twelfth schedule which says ‘Provision of urban amenities and facilities such as parks, gardens, playgrounds’. This manpower services are provided to Horticulture Department, Government of Karnataka.

The Applicant is providing services to the state government which is covered by 12th entry of twelfth schedule of the constitution which says ‘Provision of urban amenities and facilities such as parks, gardens, playgrounds’. Thus, the applicant satisfies the needed two conditions mentioned to claim exemption under Entry No. 3 of Notification No.12 of 2017 (Central Tax Rate).

The Authority held that “The services proposed to be provided by the Applicant to the Department of Horticulture for cleaning and sweeping of lawns and garden path areas and segregation and transport of the garbage are liable for GST at NIL rate as per Entry No. 3 of Notification No.12 of 2017 (Central Tax Rate).

The services proposed to be provided by the Applicant to the Department of Horticulture for supply of manpower for garden maintenance on outsource basis to the Department of Horticulture are liable for GST at NIL rate as per Entry No. 3 of Notification No.12 of 2017 (Central Tax Rate).”

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