The Finance Ministry has clarified that the GST is applicable on the services provided by the facility management agency to Municipal Corporation Of Delhi (MCD) headquarters.
As recommended by the 55th GST Council, it is clarified that GST is applicable on the services provided by facility management agency to MCD, Delhi HQ for upkeep of its head quarter building at applicable rates as these services are not covered under the scope of entry at Sr. No. 3A of the notification No. 12/2017-CTR dated 28.06.2017.
Representation has been received seeking clarification on the applicability of GST on facility management services provided to Municipal Corporation of Delhi (MCD) Headquarters, New Delhi.
MCD is receiving the services such as housekeeping, civil maintenance, furniture maintenance and horticulture, from a facility management agency, for the upkeep of their office. MCD has sought clarification as to whether such services received by them are exempt from GST in terms of Sr. No.3A of the notification No. 12/2017-CTR dated 28.06.2017.
The entry at Sr. No. 3A of notification No. 12/2017-CTR dated 28.06.2017 provides exemption to composite supply of goods and services in which the value of supply of goods constitutes not more than 25% of the value of the said composite supply provided to the Government or local authority by way of any activity in relation to any function entrusted to a Panchayat under Article 243G of The Constitution of India or in relation to any function entrusted to a Municipality under Article 243W of The Constitution of India.
However, MCD is receiving the services of facility management such as housekeeping, civil maintenance, furniture maintenance and horticulture agency for the upkeep of their office. These services are not supplied in relation to performing any functions entrusted to a Municipality under Article 243W of The Constitution of India. Such services are not covered under the scope of entry at Sr. No. 3A of the notification No. 12/2017-CTR dated 28.06.2017.
Circular No. 245/02/2025-GST
Date: 28/01/2025
