No GST On Services Of Sweeping, Segregation And Transport Of Garbage: Karnataka AAR

The two-member bench of M.P. Ravi Prasad and T. Kiran Reddy has observed that no GST is payable on the supply of manpower for garden maintenance on an outsourced basis to the Department of Horticulture which is liable for GST at NIL.

The applicant is engaged in providing manpower services. The applicant is proposing to submit a bid in response to the tender floated by the Department of Horticulture, Government of Karnataka, for certain services. The services include cleaning and sweeping of lawns and garden path areas; segregation and transport of garbage; and supply of manpower for garden maintenance.

The applicant states that horticulture is the art and science of growing plants and includes landscaping, soil management, designing, construction, and maintenance of gardens. The purpose of the work undertaken by the Horticulture Department is to ensure that the gardens are aesthetically beautiful, provide excellent ambience, and provide an authentic environment for visitors and the public.

The applicant states that the Department of Horticulture would fall within the definition of "government" for the purposes of GST and, as such, pure services received by it would be exempt from GST.

The applicant contended that there was no supply of or transfer of property in goods involved whatsoever in both cases. That being the case, the supply is composed purely of services and therefore would be a "pure service." In both cases, there is no supply of or transfer of property in goods whatsoever. That being the case, the supply is composed purely of services and therefore would be a "pure service."

The applicant submits that the activity of maintenance of parks and gardens, in respect of which the services are provided to the Department of Horticulture, is therefore within the ambit of "function entrusted to a municipality under article 243W of the Constitution".

Applicant's Name: Indian Security and Personnel arrangements

Date: 12.08.2022

Click Here To Read/Download Order