Man-power Supply to Medical College and Hospital run by State Government
A Taxpayer is providing man-power and security services to Medical College and Hospital run by State Government.
1) Man-power Services are taxable under SAC 998513 liable for GST @18% (CGST 9% and SGST 9%)
2) Security Services are taxable under SAC 998525 liable for GST @18% (CGST 9% and SGST 9%)
Entry 3 of the Notification No.12/2017-Central Tax exempts "Pure services (excluding works contract service or other composite supplies involving supply of any goods) provided to the Central Government, State Government or Union territory or local authority or a Governmental authority by way of any activity in relation to any function entrusted to a Panchayat under article 243G of the Constitution or in relation to any function entrusted to a Municipality under article 243W of the Constitution."
Eleventh Schedule of Constitution list out the functions under Article 243G of Consitution which includes
- item 17 - Education, including primary and secondary schools.
- Item 18 - Technical training and vocational education
- Item 19 - Adult and non-formal education
- Item 23 - Health and sanitation, including hospitals, primary health centres and dispensaries
Twelfth Schedule of Constitution list out the functions under Article 243W of Consitution which includes
- Item 6 - Public health, sanitation conservancy and solid waste management
Whether the services provided to medical College and Hospital will be exempt under Entry 3 of the Notification No.12/2017-Central Tax ?