Page 128 - GSTL_16 April 2020_Vol 35_Part 3

342 GST LAW TIMES [ Vol. 35
tioning. The applicant provides Housekeeping, Pest Control Security, Security
Services & Biomedical Waste Management as bundled services to 95 institutions
including Government Medical College Hospitals, Government Medical Colleges
and Government Nursing Colleges within Tamil Nadu that is functioning under
DME since 2013 and the present tender contract period is expiring in the year
2019. They have collected and paid GST from DME from 1-7-2017 to till date,
which was paid by DME to them. They had participated in an open tender for
provision of housekeeping and security services, quoting contract price with GST
@ 18% for the above services from 1-1-2020. However, DME has also received
alternative quotation from other service providers and one service bidder among
others has given their bidding with No GST. KRYSTAL seems to have participat-
ed 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. The applicant has filed this application seeking advance ruling on the fol-
lowing 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?
7.1 The Hon’ble High Court has given an order dated 14-11-2019 for
the WP 24412 of 2019 and WMP No. 24145 of 2019 that “the pendency of this Writ
Petition shall not preclude the Sixth Respondent from deciding the aforesaid application
for advance ruling said to have been made by the petitioner.” Accordingly, this appli-
cation is taken up by this authority.
The question before this authority is the applicability of GST on the ser-
vices for which Tender No. 432/outsourcing/DME/TNMSC/ENGG/2019, dat-
ed 19-2-2019 for ‘outsourcing of housekeeping and security services in 94 Gov-
ernment hospitals, colleges and school & colleges for nursing under the control
of Directorate of Medical Education’ has been called by Tamil Nadu Medical
Services Corporation Limited. It is seen from the tender that the services covered
are : Housekeeping/cleaning including Biomedical Waste Management & Pest
Control Services and Security Services specifying the requirement of manpower
at various levels, equipment and machinery and consumables at each of the insti-
tutions. It is seen that the institutions are all Hospitals or medical or nursing col-
leges.
7.2 Section 98(2) of the GST Act, 2017, states as follows :
(2) The Authority may, after examining the application and the rec-
ords called for and after hearing the applicant or his authorised representa-
tive and the concerned officer or his authorised representative, by order, ei-
ther admit or reject the application :
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