Except for the service of providing manpower to the Municipal Corporation for collecting vehicle parking fees, will not fall under exemption Notification
Classification of service- it is seen that applicant is only supplying manpower to Municipal Corporation and Maharashtra Jeevan Pradhikaran (water supply) whereas in respect of MSEDCL, in some cases they are supplying only manpower whereas in other cases, in addition to supply of manpower, they are supplying materials as well. Thus, in most cases pure services, in the form of manpower supply, are rendered by the applicant and only in a couple of cases, there is an element of composite supply of goods and services being provided.
The first question raised by the Applicant is whether their subject activities are covered under “Clause 1 & 2” of 12th Schedule of Article 243W of the Indian Constitution. Hence, we shall examine Clauses 1 & 2 of the 12th Schedule.
The next question raised by the applicant is whether the services provided by it falls under Entry No. 3 of Exemption Notification No. 12/2017 dated 28th June, 2017 as amended from time to time as the services are in the nature of pure labour services.
The third question raised by the applicant is whether the services provided by it fall within the Government Works Contract Services on which GST rate was amended to 12% in the Notification No. 20/2017.
It is an electricity distributing company and therefore supply of goods and services to MSEDCL cannot be considered as related falling under Clause 1 & 2 of Article 243W of the Constitution. Similarly, since Maharashtra Jeevan Pradhikaran (water supply) is not a municipality, supply of services to it, by the applicant, are also not related to Urban planning including town planning or Planning of land- use and construction of buildings. Therefore the said supply does not fall under Clause 1 & 2 of Article 243W of the Constitution.
In their submissions, under the heading “Scope of Work”, they have not at all mentioned anything about providing manpower to the Amravati Municipal Corporation, for cleaning of public washrooms and restrooms. According to their submissions, under the head 'Scope of Work' Sr. Nos. 9 & 10, services to the Amravati Municipal Corporation providing manpower for collecting vehicle parking fees from people who park their vehicles in the municipal corporation area and providing manpower for collecting rent from hawkers who use the municipal corporation area for selling the stuff on street respectively.
In the subject case as seen from their submissions in respect of the supply carried out by the applicant, there is no “works contract” since there is no contract for building, construction, fabrication, completion, erection, installation, fitting out, improvement, modification, repair, maintenance, renovation, alteration or commissioning of any immovable property wherein transfer of property in goods (whether as goods or in some other form) is involved in the execution of such contract. Therefore the question of availing the reduced rate of 12% GST does not arise at all.