Page 119 - GSTL_16 April 2020_Vol 35_Part 3

2020 ] IN RE : PADMAVATHI HOSPITALITY & FACILITIES MANAGEMENT SERVICE 333
Services (KRYSTAL) who is bidding with no GST. KRYSTAL seems to have par-
ticipated in the tender with no GST and is also claiming that GST is not applica-
ble for such services to Government hospitals and colleges. The applicant seeks
clarification as to whether GST is applicable for the above services to Govern-
ment Medical Colleges and Hospitals.
2.2 As per the applicant’s opinion, GST @ 18% will be applicable to
housekeeping/cleaning, pest control and security services provided as bundled
service to Government hospitals and colleges due to the reasons cited below :
(i) As per the exemption Notification 12/2017-Central Tax (Rate), dat-
ed 28-6-2017 under Chapter 99 read with amendment issued on
25-1-2018. Both refers to services provided “to the Central Govern-
ment, State Government or Union Territory or Local Authority or
Government Authority by way of any activity in relation to any
function entrusted to Panchayat under Article 243G of the Constitu-
tion or in relation to any function entrusted to a Municipality under
Article 243W of Constitution.
(ii) The applicant has stated that their services are not falling under the
above categories of Articles 243G and 243W of Indian Constitution
and so GST exemption is not available in this instance.
(iii) Sanitation and similar services are classified under SAC 99945. The
applicant has referred to the Advance Ruling order of West Bengal,
wherein it is ruled that “….. It includes sweeping and cleaning, but
only with reference cleaning of road/street. Cleaning of hospital
premises is not therefore classified under sanitation or similar ser-
vice. The service, the applicant bundled under the description
‘Scavenging Services’ are therefore not exempt under S. No. 3 of ex-
emption notification.”
3.1 The applicant was given an opportunity to be personally heard and
was heard on 26-9-2019. The applicant appeared and stated that they have filed a
W.P. No. 24412 of 2019 & WMP No. 24145 of 2019 on the same issue against Tam-
il Nadu Medical Services Corporation & Directorate of Medical Education and
against the Department. The State Jurisdictional officer also appeared for the
hearing and submitted that the WP was filed in Hon’ble High Court and gave a
written submission stating that the applicant is not eligible for exemption at Sl.
No. 3 of Notification No. 12/2017 as they provide only Manpower services. The
applicant was informed that as per Section 98(2) of CGST Act, 2017, as the ques-
tion raised is already pending in Hon’ble High Court, this authority cannot rule
on the issues raised. They informed that they will file copy of Writ Petition. The
applicant furnished written submissions during the hearing.
3.2 The State Jurisdictional Authority in the written submission has
stated that the applicant has filed writ in the High Court of judicature at Madras
for the same subject sought in the advance ruling and has furnished the com-
ments raised on the questions as given below :
(i) Whether services rendered by Padmavathi Hospitality & Facility
Management services is falling under Pure services?
The Goods and Services Tax Act, 2017 defines “services” in Section
2(102). it means anything other than goods, money and securities
but includes activities relating to the use of money or its conversion
by cash or by any other mode from one form, currency or denomi-
GST LAW TIMES  16th April 2020  239