GST- Goods And Service Tax
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The applicant provides various services in relation to housekeeping, cleaning, sanitation, waste management, locomotives cleaning and washing as a contract from Northern Railways. The Northern Railways declined to pay GST to the applicant on the ground that such services were exempted from GST as per S. No. 3 (Pure services, excluding works contract service or other composite supplies involving supply of any goods, provided to the Government or Local Authority or a Governmental Authority by way of any activity in relation to any function entrusted to a Panchayat or municipality) of Notification No. 9/2017 - Integrated Tax (Rate). For which the applicant has filed an application before Authority of Advance Ruling against the same.
The Authority for Advance Ruling clarified that such cleaning services can be considered as pure services and Northern railways and covered in the category of Central Government. However the Railways cannot be called a Municipality under the Constitution of India. Hence, these cleaning services by the applicant to the Northern Railways cannot be exempted from GST.
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