No GST on landscaping, gardening work provided to Govt. Departments if value of goods not more than 25% of total contract value: AAR

By Taxscan team

GST - gardening - value of goods -l contract value - AAR - TaxscanShare icon

The Karnataka Authority of Advance Ruling (AAR) ruled that no landscaping and gardening GST will be paid to government agencies if the value of the goods is no more than 25% of the total contract value.

The applicant, Narayanappa Ramesh, is a registered person under the provisions of the Central Goods and Services Tax Act 2017 and the Karnataka Goods and Services Tax Act 2017 and is engaged in landscaping, gardening and the maintenance of community property made available by the government becomes departments.

The complainant has requested a preliminary ruling on landscaping and gardening provided by government agencies such as Nagarasabha Karyalaya Chintamani, Nagarasabha Karyalaya Bhadravathi, Tumakuru Mahanagara Palike, Nagarasabha Raichur, Purasabha Karyalaya Devanahalli, Mahanamga.

The applicant has indicated that it influences landscape development and the maintenance of gardens. The applicant has not provided any information on the scope of the goods participation in each of these contracts and, for reasons of reasoning, it is assumed that the value of this goods shipment is less than 25% in order to meet the conditions set in the notification.

The Coram from Dr. MPRavi Prasad and Mashood Ur Rehman Farooqui ordered that the landscaping and gardening work, Nagarasabha Karyalaya Chintamani, Nagarasabha Karyalaya Bhadravathi, Tumakuru Mahanagara Palike, Nagarasabha Raichur, Purasabha Karyalaya Devaganahalli, sentence 2017, the tax notification No. 12 Palanahalli (sentence. dated 06/28/2017 in the version of communication No. 2/2018 – central tax (tax rate) dated January 25, 2018, provided that the value of the goods delivered does not exceed 25% of the total order value and the recipients of the services are central or state government departments or a local one Government agency or government agency or agency as defined in the relevant communications.

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