Page 120 - GSTL_16 April 2020_Vol 35_Part 3

334 GST LAW TIMES [ Vol. 35
nation, to another form, currency or denomination for which a sepa-
rate consideration is charged. Definition for the term “pure ser-
vices” is not described either in GST Act or in the Notification No.
12/2017-Central Tax (Rate), dated 28-6-2017. In such cases any sup-
ply which is either deemed as services under Schedule II of CGST
Act or which are not covered under the definition of goods shall be
categorized as pure services. Section 2(52) of the Goods and Services
Tax Act, 2017 defines “goods” as a kind of movable property which
are agreed to be severed before supply or under a contract of sup-
ply. The supply of services offered to the Government involves not
only of manpower but also goods and consumables like cleaning
chemicals and liquid soaps. Further there is no possibilities for
matching the kind of service offered by Padmavathy hospitality &
Facility management services with the Schedule-II (Activities or
transactions to be treated as supply of goods or supply of services).
Therefore the above category of services cannot be treated as Pure
services.
(ii) Whether services rendered by Padmavathi Hospitality & Facility
management services is exempted under S. No. 3 of Notification
No. 12/2017-Central Tax (Rate), dated 28-6-2017?
The Notification No. 12/2017, dated 28-6-2017 is provided to ser-
vices involves only supply of services i.e., pure services and not for
services involving both goods and services no exemption can be
granted to these kinds of services. Further the exemption is granted
only when pure services are related to any function entrusted to a
panchayat under Article 243G of the Constitution or in relation to
any function entrusted to a municipality under Article 243W of the
Constitution. The security services are neither enlisted in Article
243G nor in Article 243W of the Constitution. The hospital services
are listed in Article 243G and in Article 243W of the Constitution
(Health and sanitation including hospitals Primaxy health centres
and dispensaries). The concerned matter deals with the tender
floated by the Directorate of medical education which involves hos-
pital and security services to hospitals, medical colleges, college of
nursing and school of nursing. Though DME is falling under State
Government the hospital and security services in DME are not re-
lated to functions entrusted to Panchayat/Municipality under Arti-
cles 243G & 243W.
(iii) Whether services rendered by Padmavathi Hospitality & Facility
management services to DME are liable for GST?
Yes, the services are to be taxed at the rate of 18% for both security
and cleaning services.
3.3 In the written submission furnished by the applicant during the PH
held on 26-9-2019, they inter alia stated that -
 PHFMS is a partnership firm formed in the year 2012. They are pri-
marily into the business of providing Housekeeping services, Pest
Control Services, Supply of Manpower services, Security services
and Services under works Contract basis to their clients in three
States namely Tamil Nadu, Andhra Pradesh and Telangana. Some
of their major customers are Directorate of Medical Education, TCS,
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