The West Bengal Authority of Advance Ruling (AAR) has ruled that no GST is payable on supply of mobile veterinary unit (MVU) personnel on contractual basis under Livestock Health & Disease Control Scheme.
The bench of Dr Tanisha Dutta and Joyjit Banik has observed that the supply of MVU personnel on contractual basis for implementation of ―Establishment and Strengthening of Veterinary Hospitals & Dispensaries (ESVHD) – Mobile Veterinary Unit (MVU) under Livestock Health & Disease Control (LH & DC) Scheme‖ is not eligible for exemption benefit.
The applicant is a proprietorship firm engaged in the supply of contractual manpower and duly registered under the present Goods and Services Tax regime. The applicant entered into an agreement with the West Bengal Livestock Development Corporation Limited, which is a Government of West Bengal Undertaking, for providing Mobile Veterinary Unit (MVU) personnel on contractual basis at different units of the State of West Bengal Livestock Development Corporation Limited. The agreement was executed pursuant to the applicant‘s tender having been accepted in this behalf.
The applicant sought the advance ruling on the issue whether the applicant’s supply of MVU personnel on contractual basis for implementation of ―Establishment and Strengthening of Veterinary Hospitals & Dispensaries (ESVHD) – Mobile Veterinary Unit (MVU) under Livestock Health & Disease Control (LH & DC) Scheme‖ is eligible for exemption benefit under Notification No. 12/2017-Central Tax.
The AAR noted that two separate supplies take place. The first one is made by the applicant to West Bengal Livestock Development Corporation Limited and thereafter another supply is made by West Bengal Livestock Development Corporation Limited to the Department concerned, i.e. the Department of Animal Resources Development, Govt. of West Bengal. The expression ‘veterinary clinic’ has not been defined in the GST Act.
However, in common parlance, a veterinary clinic means a building or part of a building where animals are provided with treatment or medication including diagnosis, surgery, general health care and observation.
The AAR noted that the applicant is merely a supplier of manpower services on contractual basis for running a Mobile Veterinary Unit. Thus, such supply of manpower made by the applicant cannot be held as a supply of services by a veterinary clinic in relation to health care of animals or birds and hence such supply fails to qualify for exemption benefit under Sl. No. 46 of the Notification No. 12/2017-Central Tax (Rate) dated 18.06.2017 as amended.
Ruling Details
Applicant Name: Utpal Kumar Guha
Date: 18/02/2025
Read More: No Police Permission Required for Building Construction, Delhi Govt. Clarifies [READ CIRCULAR]
