Solid Waste Management Services To Municipal Corporation Is Exempted From GST: West Bengal AAR

The West Bengal Authority for Advance Ruling (AAR) has held that the supply of conservation and solid waste management services to the municipal corporation is exempt from GST.

The two-member bench of Brajesh Kumar Singh and Joyjit Banik has noted that the functions entrusted to a municipality as listed in the Twelfth Schedule include functions like sanitation conservancy and solid waste management. The applicant's services to Howrah Municipal Corporation (HMC) may be exempted under serial number 3A of the Exemption Notification if the value of goods involved in such a composite supply does not exceed 25% of the value of the supply.

The applicant is engaged in providing conservation and solid waste management services to the Conservancy Department of the Howrah Municipal Corporation (HMC) under the trade name Peau Transport.

The applicant submitted that the services provided by it are "pure services" and are exempt from GST if they are provided to the Central Government, State Government, Union Territory, Local Authority, Government Authority, or Governmental Entity in relation to any function entrusted to a Panchayat or Municipality.

The issue raised was whether conservation and solid waste management services provided are exempt from GST.

The AAR has observed that the supply for the annual operation and maintenance of compactors and hook loaders is a composite supply of goods and services, and such a supply can qualify for exemption under Serial 3A of the Exemption Notification only when the value of the goods involved in such a composite supply does not exceed 25% of the value of the supply. The goods and services are provided to the central government, state government, union territory, or local authority by way of any activity in relation to any function entrusted to a panchayat under article 243G of the Constitution, or in relation to any function entrusted to a municipality under article 243W of the Constitution.

Applicant’s Name: Banchu Das

Date: 21.10.2022

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