Solid waste management services supplied to a Governmental Authority qualify for GST exemption under Entry 3B.

Services of collection, handling, storage, transportation, processing, bundling and final disposal of non-recyclable plastic waste supplied to a Government-controlled entity were treated as solid waste management services. The recipient was regarded as a Governmental Authority because it was established and controlled by the Government and entrusted with municipal functions under Article 243W. On that basis, Entry 3B of Notification No. 13/2023-Central Tax (Rate) applied, so the services were exempt from GST.

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Issues: Whether solid waste management services rendered to Clean Kerala Company Limited, a Government-controlled body entrusted with municipal functions, are exempt from GST under Entry 3B of Notification No. 13/2023-Central Tax (Rate).

Analysis: The recipient was found to be a Governmental Authority because it was established and controlled by the Government with complete equity participation and was entrusted with functions falling under Article 243W of the Constitution of India. The services supplied by the applicant included collection, handling, storage, transportation, processing, bundling, and final disposal of non-recyclable plastic waste, which fell within the ambit of solid waste management as understood under Rule 3(46) of the Solid Waste Management Rules, 2016. Entry 3B of Notification No. 13/2023-Central Tax (Rate) specifically grants exemption for services provided to a Governmental Authority by way of solid waste management, and the factual matrix matched that entry.

Conclusion: The services were exempt from GST under Entry 3B of Notification No. 13/2023-Central Tax (Rate), and the ruling was in favour of the applicant.

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