AAR Karnataka: Blue Collar Services to Government Entity Subject to 18% GST

The Karnataka Authority of the Advanced Ruling passed a ruling that providing manpower services related to blue-collar jobs like Peons, Drivers, Data Entry Operators, Housekeeping and so on are subject to 18% of GST Grab the information of revised GST slab rates on consumer products in India, Although GST council finalized the slab rates like 5%, 12%, 18% and 28%.

Here in this case the applicant M/s Sadanand Manpower Service
Provides manpower services to the various departments of the State Governments.

Furthermore, The applicant’s contention is based on the premise that

• as per service code 99 and
• The central GST notification bearing numbers 11 and 12 of the year 2017 and dated 28.06.2017

Pure labour service that is provided to Government and Government-owned entities are exempted from tax.

The 2 member bench comprising Mashood Ur Rehman Farooqui and MP Ravi Prasad passed the aforesaid ruling.