The West Bengal Authority for Advance Ruling (AAR) ruled that no Goods and Services Tax (GST) is payable on the supply of data entry operators and junior engineers (System Administrators, Software Support Personnel) for the Jal Jeevan Mission (JJM), as it qualifies for exemption under Serial Number 3 of Notification No. 12/2017 – Central Tax (Rate), dated 28.06.2017.
The applicant, Webel Technology Limited, submitted that it provides manpower services to the Public Health Engineering Department (PHE), Government of West Bengal, for the implementation of the Jal Jeevan Mission, a government initiative for ensuring safe and adequate drinking water supply to rural households.
The applicant sought clarification on whether such supply falls within the scope of pure services provided to a government entity concerning functions entrusted to Panchayats (Article 243G) and Municipalities (Article 243W) of the Indian Constitution.
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The applicant’s counsel argued that the services supplied are directly linked to the execution of the drinking water supply function, which is an entrusted function under the Eleventh Schedule of the Constitution. As the applicant does not supply goods and only provides manpower for the project, the services qualify as pure services, making them eligible for exemption under the said notification.
The bench of Dr. Tanisha Dutta and Joyjit Banik observed that the supply of data entry operators and junior engineers is integral to the execution of the Jal Jeevan Mission, which falls under the functions entrusted to Panchayats and Municipalities.
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The AAR also observed that in its official memo, the Public Health Engineering Department (PHE), Government of West Bengal, had already stated that the services provided under JJM attract NIL GST as per the notification.
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The AAR clarified that the applicant is supplying manpower exclusively for JJM, which is directly linked to the drinking water supply function, and the exemption under Serial Number 3 of Notification No. 12/2017 – Central Tax (Rate) applies. So, the supply of manpower services for JJM is not subject to GST.
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