GST Authority exempts security and cleaning services in government hospitals under Notification: AAR [Read Order]
The supply of security and scavenging staff by the Ex‑Servicemen Resettlement Society was held to be exempt from GST
In a recent ruling, the West Bengal Authority for Advance Ruling (AAR) has held that the supply of security personnel and scavenging staff to state‑run medical colleges and hospitals qualifies as a condition under Notification No. 12/2017 – Central Tax (Rate).
Since these services involve no supply of goods, are rendered directly to the State Government, and relate to constitutional functions of health and sanitation under Articles 243G and 243W, they are exempt from GST.
The matter arises from an application filed by the Ex-Service resettlement society, which supplies security personnel and scavenging staff on a contractual basis to various government hospitals across West Bengal. The society had been raising monthly bills including wages, employer contributions to EPF and ESIC, and annual bonus, along with 18% GST. It sought clarity on whether such services were exempt.
The applicant argued that these services qualify as “Pure Services” under Notification No. 12/2017 – Central Tax (Rate) dated 28 June 2017, and therefore should be exempt from GST. Also cited that the health and family welfare department order No. 149‑HS(MS)/HFW‑231/2025 dated 22.08.2025, which recognized the services as essential and treated them as pure services.
On the other hand, the revenue has not expressed any view on the merit of the issue raised by the applicant.
The authority observed that the society involved only manpower supply without any goods, thus qualifying as pure services. Since the services were rendered to government hospitals, the second condition was also satisfied.
Also pointed out that health and sanitation, including hospitals and solid waste management, are functions listed in the eleventh and twelfth schedules of the Constitution, thereby fulfilling the third condition.
The bench of Shafeeq S and Jayadip Kumar Chakrabarti ( Member of West Bengal Authority for Advance Ruling) concluded that all three statutory conditions under Entry NO.3 notification No. 12/2017 -Central Tax Rate were satisfied in the applicant’s case.
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