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2020 ] IN RE : PADMAVATHI HOSPITALITY & FACILITIES MANAGEMENT SERVICE 335
Venkateshwara University, works contract services to Railways
(Tirupati & Renigunta) ETC. One of the Major Customer to whom
they provide Housekeeping, Pest Control, Security Services & Bio-
medical Waste Management is the Directorate of Medical Educa-
tion, Tamil Nadu (DME) under whom all the State Government
Medical Colleges are functioning.
 They provide Housekeeping, Pest Control Security, Security Ser-
vices & Biomedical Waste Management as bundled services to 95
institutions including Government Medical College Hospitals, Gov-
ernment Medical Colleges and Government Nursing Colleges with-
in Tamil Nadu that is functioning under DME. They have been
providing these services to DME since 2013 by way of 3 years Ten-
der contract.
 PHFMS bagged the tender which they applied to DME in the year
2016. This tender contract period is for a period of three years expir-
ing in the year 2019. PHFMS has now along with other bidders have
participated in an open tender for provision of housekeeping and
security services. It has quoted contract price with GST @ 18% for
the above services. However, DME has also received alternative
quotation from other service provider and one service bidder
among others has given their bidding with No GST. KRYSTAL
seems to have participated in the tender with No GST and is also
claiming that GST is fully exempt for such services provided to
Government Hospitals and colleges under Notification No.
12/2017-C.T. (Rate), dated 28-6-2017 read along with amendment
dated 25-1-2018.
 In the Tender application itself, it states for inclusion of GST for the
services provided and the tender contract amount will be inclusive
of taxes applicable for the services rendered. Hence, PHFMS even
under the earlier service tax regime, have charged service tax on the
services provided to DME as these services were taxable and
PHFMS was collecting and paying service tax under the old regime.
And even under the GST regime, PHFMS has collected and paid
GST from DME from 1-7-2017 to till date. PHFMS used to raise Tax
Invoice to DME for the abovementioned services rendered inclusive
of GST and even the DME were Clearing the bills including GST.
Now that the old tender contract period has expired and they had to
apply afresh for the new tender contract to DME, they had made an
application for the open Tender floated by DME on 19-2-2019 for
providing housekeeping, Security Services, Pest Control & Biomed-
ical Waste Management Services in 95 Government medical institu-
tions under the control of Director of Medical Education Tamil
Nadu. PHFMS has quoted the bid value of tender including the GST
applicable for the services rendered.
 However DME is of the opinion that the services provided to them
is exempt from GST under exemption Notification No. 12/2017-
Central Tax (Rate), dated 28-6-2017 read along with amendment
dated 25-1-2018 and the tender should be placed excluding GST.
DME has based their opinion on note given by an alternative bidder
M/s. Krystal Integrated Services Private Limited and Independent
GST LAW TIMES  16th April 2020  241