Page 118 - GSTL_16 April 2020_Vol 35_Part 3

332 GST LAW TIMES [ Vol. 35
CASES CITED
Altabur Rahman Mollah — 2019 (29) G.S.T.L. 65 (A.A.R. - GST) — Referred ............................... [Para 3.3]
Ex-Servicemen Resettlement Society — 2019 (21) G.S.T.L. 279 (A.A.R. - GST) — Referred ........ [Para 3.3]
Oscar Security & Fire Service — 2019 (22) G.S.T.L. 132 (A.A.R. - GST) — Referred ..................... [Para 3.3]
W.M.P. No. 32267 of 2019 in W.P. No. 24412 of 2019 — Referred .................................................... [Para 5.1]
W.P. No. 24412 of 2019 and W.M.P. No. 24145 of 2019, decided on 14-11-2019
by Madras High Court — Referred ......................................................................[Paras 3.4, 4.2, 5.2, 7.1]
W.P. No. 24412 of 2019, decided on 19-8-2019 — Referred .......................................................... [Paras 6, 7.3]
DEPARTMENTAL CLARIFICATIONS CITED
C.B.E. & C. Circular No. 25/2017, dated 21-12-2017 ......................................................................... [Para 7.2]
C.B.I. & C. Circular No. 51/25/2018, dated 31-7-2018 ..................................................................... [Para 5.2]
[Order]. - M/s. Padmavathi Hospitality & Facilities Management Ser-
vices, New No. 51, Old No. 117, 2-B, JVL Towers, 2nd Floor, Nelson Manickam
Road, Aminjakarai, Chennai-600029 (hereinafter referred as ‘Applicant’) is regis-
tered under the GST Act, 2017 vide GSTIN No. 33AAIFP7751M1ZR. The appli-
cant is engaged in providing Housekeeping/Cleaning including Pest Control
services and Security services as bundled services to Directorate of Medical Edu-
cation (DME) that includes Government Medical College Hospitals, Government
Medical Colleges and Government Nursing Colleges. The applicant has sought
Advance Ruling on the following questions :
(1) Whether services provided by Padmavathi Hospitality & Facilities
Management Services (PHFMS) to DME are classifiable as a func-
tion entrusted to a Panchayat or a Municipality under the Constitu-
tion? If not then can we conclude that no exemption is available to
PHFMS?
(2) Whether services provided by PHFMS to DME is exempted under
Sl. No. 3 of Notification 12/2017-Central Tax, dated 28-6-2017 read
along with amendment dated 25-1-2018?
(3) Whether Services provided by PHFMS to DME including institu-
tions of Government Hospitals and colleges are liable for GST or
not? If yes, what is the rate of GST applicable to these services?
(4) Whether services rendered by PHFMS to DME can be classified as
pure services or Composite Supplies?
The applicant submitted a copy of challan evidencing payment of application
fees of Rs. 5,000/- each under sub-rule (1) of Rule 104 of CGST Rules, 2017 and
SGST Rules, 2017.
2.1 The applicant has stated that they provide Housekeeping/cleaning
including pest control services, security services to Directorate of Medical Educa-
tion (DME) that includes Government Medical College Hospitals, Government
Medical Colleges and Government Nursing Colleges. The applicant provides the
above services to 95 Government Hospitals and colleges within Tamil Nadu.
They have been providing these services since 2013 by way of 3 years contract
that was renewed in 2016 which expires in 2019. The applicant has stated that
they now intend to renew the contract by participating in tender for outsourcing
of housekeeping and security services in 94 Government Hospitals, Colleges and
Schools, Colleges for Nursing under the control of DME. They have made appli-
cation for tender to DME along with other service providers. They have quoted
contract price with GST @ 18% for the above services. However, DME has also
received alternate quotation from other service provider M/s. Krystal Integrated
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