Bio-medical waste disposal services taxable at 12% GST from July 2022, exemption removed The AAR, Rajasthan ruled that services of disposal and treatment of bio-medical waste from clinical establishments fall under SAC heading 999433 and are ...
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Bio-medical waste disposal services taxable at 12% GST from July 2022, exemption removed
The AAR, Rajasthan ruled that services of disposal and treatment of bio-medical waste from clinical establishments fall under SAC heading 999433 and are taxable at 12% GST from 18.07.2022. Previously exempt under Entry No. 75 of Notification No. 12/2017-CT (Rate), the exemption was omitted through Notification No. 04/2022-CT (Rate) and made taxable via Notification No. 03/2022-CT (Rate), both dated 13.07.2022.
Issues Involved: 1. Applicability of GST on disposal and treatment of Bio-Medical Waste obtained from clinical establishments. 2. Effective date for GST liability on the aforementioned services. 3. Applicable GST rate for the aforementioned services.
Summary:
Issue 1: Applicability of GST on Disposal and Treatment of Bio-Medical Waste
The applicant, M/s Instromedix Waste Management Private Limited, sought an advance ruling on whether the services of disposal and treatment of Bio-Medical Waste obtained from clinical establishments are liable to tax under Notification No. 03/2022-Central Tax (Rate) dated 13.07.2022. The Authority for Advance Ruling (AAR) noted that these services were previously exempted under Entry No. 75 of Notification No. 12/2017-CT (Rate) dated 28.06.2017. However, this exemption was removed by Notification No. 04/2022-CT (Rate) dated 13.07.2022, making the services taxable under Entry No. 32(ia) of Notification No. 11/2017-CT (Rate) as amended by Notification No. 03/2022-CT (Rate) dated 13.07.2022.
Issue 2: Effective Date for GST Liability
The AAR determined that the services of disposal and treatment of Bio-Medical Waste obtained from clinical establishments became taxable from 18.07.2022, the effective date of Notification No. 03/2022-CT (Rate).
Issue 3: Applicable GST Rate
The applicable GST rate for the services of disposal and treatment of Bio-Medical Waste obtained from clinical establishments was set at 12% (CGST 6% and SGST 6%) as per Entry No. 32(ia) of Notification No. 11/2017-CT (Rate) as amended by Notification No. 03/2022-CT (Rate).
Ruling:
1. The services of disposal and treatment of Bio-Medical Waste obtained from clinical establishments are liable to tax under Notification No. 03/2022-CT (Rate) dated 13.07.2022. 2. The registered dealer is liable to pay GST on these services from 18.07.2022. 3. The rate of GST applicable to these services is 12% (CGST 6% and SGST 6%).
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