Page 127 - GSTL_23rd July 2020_Vol 38_Part 4

2020 ] IN RE : A.B. ENTERPRISE 493
the relevant conditions as specified in the corresponding entry in column
(5) of the said Table, namely :-

Sl. Chapter Description of Service Rate Con-
No. dition
3. Chapter Pure services (excluding works contract NIL NIL
99 service or other composite supplies involv-
ing supply of any goods) provided to the
Central Government, State Government or
Union territory or local authority or a Gov-
ernmental authority or a Government enti-
ty by way of any activity in relation to any
function entrusted to a Panchayat under
article 243G of the Constitution or in rela-
tion to any function entrusted to a Munici-
pality under article 243W of the Constitu-
tion.

13. Therefore, the conditions to be fulfilled to be eligible for taking the
benefit of the exemption from GST under the above notifications, is as under :
(i) Pure services are to be provided.
(ii) Service recipient should either be Central Government or State
Government or Union territory or Local authority or Governmental
authority or Government entity : and
(iii) Such services provided should be by way of any activity in relation to
any function entrusted to a Panchayat under Article 243G of the Con-
stitution of India or in relation to any function entrusted to a Munic-
ipality under Article 243W of the Constitution of India.
13.1 So, the first condition to be discussed is as to what is meant by
pure service? Since ‘pure service’ has not been defined under GST, the same can
be construed in general terms as any supply 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. However, as per the notification,
works contract services or other composite supplies involving supply of any
goods are not covered in Serial No. 3. In other words, if a person provides only
service to any person without involvement of supply of goods along with supply
of services, then the same would be termed as supply of pure service. On going
through the work orders submitted by the applicant with regard to services pro-
vided to the entities mentioned in para 11 above, it is seen that the services pro-
vided are of only manpower supply or security services and since there is no in-
volvement of supply of goods in these services, the services would be called
‘pure services’ Hence the first condition is fulfilled.
13.2 The second condition to be verified is as to whether the entities
mentioned at para 11 above are Central Government or State Government or Lo-
cal authority or Governmental authority or Government entity. In this regard,
definitions of the same as per the CGST Act, 2017 are as under :
(i) As per Section 2(53) of the CGST, Act, 2017, “Government” means
the Central Government.
(ii) As per Section 2(53) of the Gujarat GST, Act, 2017, “Government”
means the State Government.
GST LAW TIMES  23rd July 2020  127