Recently the Karnataka Authority of Advance Ruling (AAR) made the decision to not levy GST on the services payable to the horticulture department considered for the sweeping and cleaning of garden paths, lawns, segregation and garbage transportation.
The bench comprising of M.P. Ravi Prasad and T. Kiran Reddy made the decision by considering the nil GST on the services for the horticulture department when there is a manpower supply for the complete maintenance of gardens done on the outsourcing of manpower. by the department.
The services such as sweeping, cleaning and segregation of garbage and transportation along with the manpower outsourced to do such tasks have been provided to the Government Department of the State of Karnataka, i.e., the Department of Horticulture.
There is common knowledge about horticulture which is a science as well as the art of growing plants and soil management and landscape Maintenance along with the construction, designing and maintenance of gardens. The outsourcing of manpower to clean and sweep these gardens is to keep them in upright condition and remain aesthetically beautiful as they are intended to be so.
The applicant also mentioned that the services have been provided to the government and the GST should be exempted due to the nature and the party of the receiving services.
The place of services is Siri Horticulture Garden, Ooty, Tamil Nadu where the services such as sweeping, cleaning, and segregation of garbage and its transportation are provided. The said place of services is also mentioned in the article of the constitution at the place article 243W at the 12th schedule and 12th entry stating that “provision of urban amenities and facilities such as parks, gardens, and playgrounds”.
This particular condition in the article has been observed by the Authority for Advance Rulings (AAR) and was the major aspect while taking the exemption of the GST on the applicant services to the government department.
