Karnataka Authority for Advance Ruling ( AAR ) recently held that Man power service under the Department of Horticulture and Centre of Excellence attracts 18% Goods and Service Tax.
The applicant Sanjeevini Enterprises is a proprietorship concern. The applicant states that they are bidding for a tender called by the department of horticultures which include the supply of manpower bio centre, department of horticulture, centre of excellence of Floriculture, Tunga Horticulture farm,shimoga for maintenance of plant. Tissue culture, production of mushrooms and also for cleaning of offices.
The applicant sought this application for whether work contract services provided to bio centers, department of horticulture, and centers of excellence are exempted from the GST exemptions?
The applicant submitted that they are bidding for a tender called by the department of horticultures which include the supply of manpower for the bio center, department of horticulture, center of excellence of Floriculture, Tunga Horticulture farm, shimoga.
Moreover the man power is supplied for the following work ,cleaning and maintenance of equipment used under production of tissue culture and ,cleaning and maintenance of equipment used and handling wastage.
The authority after verifying the records submit by the applicant observed that “tissue culture is not same as agriculture and there is no direct nexus to the item mentioned in eleventh or twelfth schedule of the constitution .Thus supply of manpower of tissue culture production and for handling the process on research on flowers planting and growing to horticulture department government of Karnataka not provided by way of any activity in relation to any function entrusted to Panchayath under article 243G of the constitution.
After the contentions made by the applicant the Appellate Authority consists of member M.P Ravi Prasad , and Kiran Reddy.T, held that manpower service like data entry operator ,security to horticulture department is eligible to GST at 18%.
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