Cleaning & Maintenance of toilets at bus stations is exempt from payment of GST.

Facts: –

• That the petitioner was awarded contracts of clearing toilets in different bust stations and the petitioner is duly paying the rentals including 18% G.S.T. i.e., 9% C.G.S.T. & 9% A.P.G..ST, as demanded by the respondents.
• That Government of India through its Notification No. 12/2017 – Central Tax (Rate), dated 28.06.2017, exempted G.S.T. for the service under Heading 9994, serial No.76, which refers to “Services by way of public conveniences such as provision of facilities of bathroom, washrooms, lavatories, urinal or toilets.”.
• Further, a similar exemption was granted by the State of Andhra Pradesh through G.O.Ms.No.588, Revenue (Commercial Taxes-II) Department, dated 12.12.2017.
• That in spite of the issuance of the said notifications, a demand notice referring to the demand of G.S.T. was issued on 10.06.2022 to the petitioner. Being aggrieved the petition has been moved by the petitioner.

It was submitted on the behalf of the petitioner that in view of the Notification No. 12/2017 dated 28.06.2017, issued by the Government of India and G.O.Ms.No.588, dated 12.12.2017, issued by the Government of Andhra Pradesh, the petitioner is exempted from payment of G.S.T.

On the other hand, strongly opposing the contention of the petitioner, it was submitted on the behalf of the respondents that the notifications relied upon the petitioner are not applicable to the present case.

Held: –

• The Hon’ble Court after considering the submissions made, facts of the case and the notifications referred, found that perusal of Notification no. 12/2017 dated 28.06.2017, would show that Heading 9994 relates to “Services by way of public conveniences such as provision of facilities of bathroom, washrooms, lavatories, urinal or toilets” and the rate of tax against the said heading is shown as “nil”, and a similar notification was issued by the Government of Andhra Pradesh vide G.O.Ms.No.588, dated 12.12.2017.
• It was found by the Hon’ble Court that both the notifications are still in force and no further notification has been issued modifying or overriding the same.

The Hon’ble Court with the above findings allowed the writ petition, declaring the action of the respondents in demanding C.G.S.T. and A.P.G.S.T. at the rate of 9% each on the monthly license fee paid by the petitioner for the work contract of maintenance of toilets at the bus stations as illegal and improper.

To read the complete judgment 2022 Taxo.online 866