Advance Ruling Authority Confirms GST Exemption for Services Rendered by Ex Servicemen Resettlement Society
In a significant ruling dated December 10, 2025, the Authority for Advance Rulings (West Bengal) has determined that security and scavenging services provided by the Ex Servicemen Resettlement Society to various government medical institutions in West Bengal are exempt from the Goods and Services Tax (GST) under Notification No. 12/2017 - Central Tax (Rate) dated June 28, 2017.
The ruling comes in response to an application submitted by the Ex Servicemen Resettlement Society seeking clarification on whether their services qualify as "Pure Services" and thus are exempt from GST. The society, represented by Vice President Mr. Sunirmal Basu, provides security personnel and scavenging staff on a contractual basis to numerous state-run medical facilities across West Bengal, including medical colleges, district hospitals, and sub-divisional hospitals.
The Authority, comprising members Shafeeq S and Jaydip Kumar Chakrabarti, reviewed the application and relevant documents, including invoices and government orders, to ascertain the nature of the services provided. The ruling clarified that "Pure Services," as outlined in the notification, exclude works contract services or composite supplies involving goods. The security and scavenging services provided by the society do not involve any supply of goods, thus fitting the definition of "Pure Services."
Moreover, the services are rendered to government entities, fulfilling the second condition for exemption. The third condition requires that the services must relate to functions entrusted to Panchayats or Municipalities under Articles 243G and 243W of the Indian Constitution. The Authority noted that activities such as security and scavenging are essential for the operation of hospitals, aligning with the constitutional functions concerning health and sanitation.
The Authority's decision underscores the importance of these services in supporting public health infrastructure and acknowledges their integral role in the effective functioning of healthcare facilities. This ruling provides clarity for organizations providing similar services under government contracts, ensuring they are not burdened with GST obligations, thereby facilitating smoother operations and service delivery.
Bottom Line:
Security and scavenging services provided to Government Medical Colleges and Hospitals are considered "Pure Services" under Notification No. 12/2017 - Central Tax (Rate) Dated 28.06.2017 and are exempted from GST if they satisfy the prescribed conditions.
Statutory provision(s):
- Central Goods and Services Tax Act, 2017
- West Bengal Goods and Services Tax Act, 2017
- Notification No. 12/2017 - Central Tax (Rate) dated 28.06.2017
- Article 243G of the Constitution of India
- Article 243W of the Constitution of India
Ex Servicemen Resettlement Society, (AAR)(West Bengal) : Law Finder Doc Id # 2825965
