M/s Sankalp Facilities and Management Services Pvt. Ltd

1.At the outset we would like to make it clear that the provisions of the Central Goods and Services Tax Act, 2017 and Gujarat Goods and Services Tax Act. 2017 (hereinafter referred to as the ‘CGST Act. 2017’ and the ‘GGST Act, 201 7’) are in pari materia and have the same provisions in like rnatter and diff-er from each other only on a few specific provisions. Therefore, unless a mention is particularly made to such dissimilar provisions, a reference to the CGST Act.201’7 would also mean reference to the corresponding similar provisions in the GGST AcL2017.

2.The present appeal has been filed under Section 100 of the CGST Act, 2017 and the GGST Act. 2017 by M/s Sankalp Facilities and Management Services Private Limited (hereinafter referred to as Appellant) against the Advance Ruling No. GUJ/GAAR/R/51 /2021 dated 06.09.202 1.

3.Brief facts ofthe case:

3.1 M/s Sankalp Facilities and Management Services Pvt. Ltd.. C-53, Amrapali Society. Near Vraidham, Manjalpur. Vadodara Gujarat (hereinafter referred to as ‘the appellant’), holding GSTIN: 24ABCCS8IOOMIZC is engaged in the business of providing manpower supply for housekeeping. cleaning. security. data entry operator etc.

3.2 The appellant submitted that it provides manpower supply services to sev Government authorities/ entities and that the appellant is eligible to claim ex benefit under Sr.No.3 of Notification No. l212017-Central Tax (Rate) dated 2 Name and address of the appellant M/s. Sankalp Facilities and Management Services Pvt, [-td.- C-53, Amrapali Society. Near Vrajdham, Manj alpur, Vadodara. Gujarar3900l I GSTIN of the appellant 24ABCCSSIOOMlZC Advance Ruling No. and Date GUJ/GAAR/zu5 I 12021 DATED 06.09.2 I Date of appeal 08.10.202 1 Date of Personal Hearing 06.01 .2023 Present for the appellant Shri Mahavir Gadhavi (Advocate) for pure services (supply of manpower, security service) provided to Central Govemment, State Government, Local authorities. Govemment entities as detailed. in their application, subject to the condition that the services provided to these entities mentioned are provided by way of any activity in relation to any function entrusted to a Panchayat under Article 243G of the Constitution of India or in relation to any function entrusted to a Municipality under Article 243W of the Constitution of India

3.3The appellant sought advance ruling on the following question:” Whether the appellant is liable to pay GST on manpower services provided to the Central Government, State Goyernment, Local authorities, Governmental authorities and Government entities?

4.The Gujarat Authority for Advance Ruling (hereinafter referred to as “GAAR”) vide its order No. GUJ/GAANW5I12}?I dated 06.09.2021, gave the following ruling ro the above question.

“1. The subject supply for the purpose of security, cleaning and housekeeping services provided to the cited schools are exempt from GST.

2.GST is liable to paid on subject supply provided to all cited Government Colleges providing education services of above higher secondary level.

3.GST is liable to be paid on subject supply provided to all cited Government ffices.

4.GST is lioble to be paid on subject supply provided to all cited Government hospita ls.

5.Being aggrieved with the above Ruling. the appellant has preferred the present appeal on the following grounds:

(a) The gist of the exen.rption entry no. 3 of Notification No. l2 of 2017 can be summarized lbr taking the benefit of the said exemption as under:

(i) Pure services are provided

(ii) Service recipient is either Central Govemment or State Govemment or Local authority or Government entity; and

(iii) Such services provided should be by way ofany activity in relation to any function entrusted to a Panchayat under Article 243G ofthe Constitution of India or in relation to any function entrusted to a Municipality under Article 243W of the Constitution of India. The leamed authority has misconstrued the term ‘in relation to’ stated in the notification entry. The term ‘in relation to’ used in above exemption is very much wide enough to cover every kind of services that results in performance of the functions as mentioned in 243W and 243G of the Constitution of India either directly or indirectly. Even the services provided for enabling the organisation to perform defined functions would also be covered as a reason ofusage of words ‘in relation to’. In the case of Doypack Systems P. Ltd., Vs. UOI as reported in (1988) 36 ELT 201 (S.C.) it was held that ” the expression ‘in relotion to’ (so also ‘pertaining to’) is a very broad expression which pre-supposes another subject matter. These are words of comprehensiveness which might both have a direct significance as well as an indirect significance depending on the context. It also held that the expression ‘in relation lo’ has been interpreted to the words of widest amplitude”.

5.1 During the course of virtual personal hearing held on 06.01.2023. the authorized representative for the appellant, Shri Mahavir Gadhavi (Advocate) reiterated the submissions made in their appeal. Further also fumished additional written submissions vide which it was submitted as under:

5.2 In pursuance to transfer of Member (SGST), the appellant was informed regarding the same for fresh personal hearing in the matter. The appellant vide his letter/mail dated 14.03.2023 requested to decide the appeal on the basis of material submitted physically as well as on mail and material alreadv on record.

Discussions & Findings:

6.We have gone through the f’acts of the case as submitted in the Appeal papers. the Ruling of the GAAR, documents on record and oral as well as all the written submissions made by the appellant

7.1 We find that the appellant is engaged in the business of providing manpower supply fbr housekeeping. cleaning. security. data entry operator etc. The appellant has ilri9ilt sought ruling on the fbllowing.

7.2 The appellant has relied upon Entry No.3 to Notification No.l212017-Central Tax (Rate) dated 28.06.2017 lbr claiming exemption on supply of manpower services   provided to the Central Govemment, State Govemment, Local authorities, Governmental authorities and Government entities. The extracts of the said entry No. 3 to Notification No.l2l2Ol7-Central Tax (Rate) dated 28.06.2017 as amended, relied upon by the appellant for claiming exemption is reproduced below:

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M/s Sankalp Facilities and Management Services Pvt. Ltd

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