Manpower service is not supply of farm labour hence taxable

Case covered:

Mrs. Manju Devi, (M/s M.D. Enterprises)

Facts of the case:

The applicant is a sole proprietor of M/s M.D. Enterprises. The total turnover of the applicant for the financial year 2018-19 was INR 17.75 Lacs. The applicant is unregistered under the provisions of the CGST Act,2017 as on the date due the fact of turnover being less than the threshold limit for registration.

The applicant is in the business of supply of manpower falling under SAC no. 99851. During FY 19-20, the applicant supplied labor to one of his clients for the purpose of working in the agricultural farm. The supply of farm labor falls under SAC no. 9986. The recipient of the service of the supply of farm labor is the sole owner of agriculture land having khasara no. 107/20, 107/21 & 122 having Area -4-16, 4-16 & 2-8 Bighas respectively at Village- Dera Mandi, Tehsil- Mehrauli, Distt.- Delhi(South). Besides, the recipient is the owner of a few immovable properties, which are used for renting purposes.

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Observation of AAR:

We find that Chapter heading 9985 is for Support Services other than agriculture and includes in general, manpower supply for various works. The support services supplied by the applicant are classified under SAC no. 99851( as per submissions) in Annexure to Notification No. 11/2017- Central Tax(Rate) dated 28.06.2017.

We find that Chapter heading 9985 is for Support Services other than agriculture and includes in general, manpower supply foe various works.

In view of the above, we find that the supply of manpower falling under SAC 99851 is not exempted from GST under Notification No. 12/2017- Central Tax (Rate) dated 28.06.2017 and Notification No. 09/2017- Integrated Tax (Rate) dated 28.06.2017 as the said notification is available to supply of farm labor services falling under Chapter heading 9986 only.

Further, Question ‘b’ & ‘c’ of the applicant are beyond the scope of this authority as defined under section 97(2) of GST Act, 2017 and therefore, no advance ruling can be given on these questions.