Manpower services of clerical staff or typists to social welfare Department are taxable at 18% under GST: AAR

Case Details: Authority for Advance Rulings, Karnataka Madivalappa Karveerappa Belwadi, In re - [2021] 131 taxmann.com 269 (AAR - KARNATAKA)

Judiciary and Counsel Details

• • Dr. Ravi Prasad M.P. and Mashhood Ur Rehman Farooqui, Member
  • M.K. Belwadi, Proprietor for the Applicant.

Facts of the Case

The applicant was a contractor providing manpower services to Zilla Panchayat and City Corporation, Educational institutions, Rural Water Supply Divisions and many educational institutions under department of Social Welfare. It filed an application for advance ruling on question as to whether the manpower services provided would be exempt under GST.

AAR Held

The Authority for Advance Ruling observed that manpower supplied by the applicant was in the nature of ‘D’ Group, Data Entry Operators and clerical staff. It was evident that Zilla Panchayat, City Corporation/Municipalities etc. would be covered under local authorities and Social Welfare Department was a department of State Government. But manpower services of clerical staff or typists were not provided 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. Therefore, such manpower services of clerical staff or typists would not be exempt and liable to tax at 18%.