Security, Scavenging Services Provided to Government Hospitals Exempt from GST: AAR

The West Bengal Authority for Advance Ruling (WBAAR) has ruled that security and scavenging services supplied to government-run medical colleges and hospitals qualify as “pure services” and are exempt from Goods and Services Tax (GST) under Notification No. 12/2017-Central Tax (Rate). The bench of Shafeeq S. and Jaydip Kumar Chakrabarti has observed that the applicant is providing security personnel to the hospitals of Government of West Bengal in various districts and in Kolkata. The service is restricted to providing security personnel only. The invoices refer to the wages and bonus, if any for the concerned security personnel provided by the applicant. No other charges have been found in those invoices. Though no document in respect of scavenging services has been placed before us, it is learnt from the applicant‘s written submission dated 10.09.2025 that the applicant provides scavenging staff to various Government Medical Colleges and Hospitals, District Hospitals, Sub-Divisional Hospitals under the authority of the Government of West Bengal. The ruling was delivered in an application filed by a Kolkata-based ex-servicemen welfare society engaged in providing contractual security personnel and scavenging staff to various State Government medical colleges, district hospitals and sub-divisional hospitals across West Bengal The applicant had been raising monthly bills on government hospitals covering wages, employer’s contribution towards EPF and ESIC, and annual bonus, while charging and depositing GST at the rate of 18 per cent. However, the recipient hospitals took the position that such services were exempt as pure services under GST law and should not attract tax. To resolve the ambiguity, the applicant approached the WBAAR seeking clarity on whether the services supplied were exempt under Entry No. 3 of Notification No. 12/2017, which provides GST exemption for certain services rendered to government authorities in relation to constitutional functions The central question before the Authority was whether security and scavenging services provided to government hospitals could be considered Pure services (i.e., involving no supply of goods), Supplied to the State Government, and rendered in relation to functions entrusted to Panchayats or Municipalities under Articles 243G or 243W of the Constitution. The WBAAR noted that the applicant was only supplying manpower in the form of security guards and scavenging staff, with no involvement of goods or materials, thereby satisfying the requirement of a “pure service”. The Authority further observed that government medical colleges and hospitals are instrumentalities of the State Government, fulfilling the second condition under the exemption notification. On the constitutional aspect, the Authority examined the Eleventh and Twelfth Schedules of the Constitution, which list “health and sanitation, including hospitals” and “public health, sanitation conservancy and solid waste management” as functions entrusted to Panchayats and Municipalities. It held that security and scavenging services are essential support services without which public hospitals cannot function effectively. The Authority emphasized that the phrase “any activity in relation to” used in the notification has a wide scope and clearly covers ancillary and support services necessary for delivering public health services. Concluding that all three conditions prescribed under Entry No. 3 of Notification No. 12/2017 were satisfied, the West Bengal AAR ruled that security and scavenging services provided to government hospitals are exempt from GST. The Authority answered the question in the affirmative, granting relief to the applicant and settling a key issue impacting similar manpower service providers engaged with government healthcare institutions Ruling Details Applicant’s Name: Ex Servicemen Resettlement Society Ruling Date: 10/12/2025 Click Here To Read Ruling Read More: GST Sponsorship Services: Section 8 Companies Classified as ‘Body Corporate’, Forward Charge Applies from January 2025: AAR

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