GST Not Payable on Services Provided To Horticulture Dept. for Cleaning Transportation of Garbage: AAR

The two-member bench of M.P. Ravi Prasad and T. Kiran Reddy has observed that GST is not payable on the services proposed to be provided to the Horticulture Department for the supply of manpower for garden maintenance on an outsourced basis to the Department of Horticulture.

The applicant submitted that the proposed activities, that is, cleaning and sweeping of lawns and garden path areas; segregation and transport of garbage; and supply of manpower for garden maintenance, are intended to be provided to the Government Department of the State of Karnataka, i.e., the Department of Horticulture.

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 stated 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 was providing manpower services for cleaning and sweeping of lawns and garden path areas; segregation and transport of garbage in Cubbon Park; and maintenance of gardens in Siri Horticulture Garden, Ooty, Tamilnadu. It was in relation to the function entrusted to a municipality under article 243W of the constitution, which is covered by the 12th entry of the twelfth schedule, which says "provision of urban amenities and facilities such as parks, gardens, and playgrounds". The manpower services were provided to the Horticulture Department, Government of Karnataka.

The AAR observed that the applicant is providing services to the state government, which is covered by the 12th entry of the twelfth schedule of the constitution, which says "provision of urban amenities and facilities such as parks, gardens, and playgrounds".

Applicant's Name: Indian Security And Personnel Arrangements

Dated: 12/08/2022

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