M/s Sankalp Facilities and Management Services Pvt. Ltd.

In a recent decision by the Gujarat Appellate Authority for Advance Ruling (GAAAR), in the matter concerning M/s Sankalp Facilities and Management Services Pvt. Ltd., the authority issued order No. GUJ/GAAAR/APPEAL/2023/03 on 29th March 2023. The ruling specifically addresses the eligibility for Goods and Services Tax (GST) exemption in the context of manpower supply for services such as housekeeping, cleaning, security, data entry operators, and related functions provided to government departments.

The crux of the ruling revolves around the interpretation of Entry No. 3 to Notification No. 12/2017-Central Tax (Rate) dated 28th June 2017, as amended. According to the ruling, the GAAAR concluded that the supply of manpower services for the specified activities to various government departments does not qualify for GST exemption under the aforementioned entry.

In essence, the GAAAR’s decision implies that service providers, like M/s Sankalp Facilities and Management Services Pvt. Ltd., engaged in offering manpower for housekeeping, cleaning, security, data entry operations, and similar functions to government entities will not be eligible for GST exemption. This interpretation is significant for businesses operating in the service sector, as it clarifies the tax implications associated with the provision of these services to government departments in the state of Gujarat.

As a result of this ruling, service providers in Gujarat involved in the supply of manpower for housekeeping, cleaning, security, data entry operators, etc., to government departments will be required to adhere to the prevailing GST regulations and fulfill their tax obligations on such transactions. This decision by the GAAAR provides clarity on the taxation framework applicable to such services, allowing businesses to make informed decisions regarding their operations and compliance with GST laws in the state. 

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.  

3.1 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 th  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) I11O 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.  J.J The 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?  

Download PDF:
M/s Sankalp Facilities and Management Services Pvt. Ltd.

For Reference Visit:
Gujarat High Court

Read Another Case Law:
GST Case Law