Pure conservancy services linked to municipal functions qualify for GST exemption under the exemption notification.

Conservancy services consisting of garbage removal, sweeping, drain cleaning, pruning, and disposal of dead animals were treated as pure services because no transfer of property in goods was shown and the vehicles, fuel and machinery used did not constitute a supply of goods. Those services were also found to fall within public health, sanitation, conservancy and solid waste management functions under the Twelfth Schedule read with Article 243W of the Constitution. As a result, the supply was held eligible for exemption under Serial No. 3 of Notification No. 12/2017-Central Tax (Rate), and the services supplied to the military stations were exempt from GST.

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Issues: Whether the applicant's conservancy services supplied to military stations constituted pure service supplied to the Government in relation to functions entrusted to a municipality under the Constitution and were therefore exempt from GST under the exemption notification.

Analysis: The supply described in the work orders consisted of removal, collection and disposal of garbage and filth, sweeping and clearing roads, drains and open areas, cutting and pruning trees, and lifting dead animals. No transfer of property in goods was shown in the execution of the work, and the vehicles, fuel and machinery used did not amount to a supply of goods to the recipient. The supply was therefore treated as pure service. The services also answered the constitutional description of public health, sanitation, conservancy and solid waste management under the Twelfth Schedule read with Article 243W of the Constitution of India. The exemption under Serial No. 3 of Notification No. 12/2017-Central Tax (Rate) dated 28/06/2017 was held applicable to such pure services supplied in relation to those municipal functions.

Conclusion: The applicant's supply to Bagrakot Military Station and Sukna Military Station is exempt from GST under Serial No. 3 of the exemption notification.

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