The Appellate Authority of Advance Ruling (AAAR), Karnataka released an order dated 04 May 2020 and ruled that the maintenance and landscape development of gardens for government undertakings come under subcontract work and thus the GST will be applicable on it. M/s The Nurserymen Cooperative Society LTD, Lalbagh, Bangalore is the applicant in this matter and they filed the appeal under section 100 of the CGST Act 2017 along with Karnataka CGST Act 2017Read the latest articles and news regarding CGST Act under Goods and Services Tax India. against the advanced ruling No. KAR/ADRG 102/ 2019 dated September 30th, 2019.
The applicant provides services related to the maintenance of Gardens and landscape development for State/ central government, local bodies, and govt. Undertaking.they stated that they are providing services excluding works contract services as well as some other composite supplies which don’t involve any goods to the customers and it is also exempted in Sr. No. 3 of Notification released on 28th June 2017. Now the applicant is planning to subcontract the work with subcontractors so the applicant requested clarification of Whether tax under the GST Act is liable on these subcontract work?
As per the order no. KAR/AAAR-20/2020-21, the exact wordings are, Whether the landscape development and maintenance of garden work for state/ Central Government Departments, all government local bodies, etc. and other government undertaking through a contract from sub-contracts attracts GST as inward supplies from those vendors?
The AAR (Authority for Advance Rulings) 
AAR said that “Even after assuming the activity of the applicant being either covered in entry no.3 or entry no.3A of the Notification No.12/2017- Central Tax (Rate) dated 28.06.2017 (as amended), the activity supply by the sub-contractor to the applicant of execution of the sub-contract work of the said activity would not be exempt as it is not covered either in entry no.3 or entry no.3A of the Notification No.12/2017- Central Tax (Rate) dated 28.06.2017 (as amended), as the applicant being the recipient of such service is not covered under the class of recipients enumerated in the said entries,”
The AAAR considering the ruling of AAR stated that the landscape development and maintenance of garden work for government undertakings are covered as it is in subcontract work and hence it will attract Goods and Service Tax.
