Bio-mining and site reclamation fall under waste treatment services, while municipal pure services remain GST-exempt.

Bio-mining of legacy waste and site reclamation were treated as waste treatment, disposal and site remediation under SAC 9994, so the activity attracted GST at 18%. The same supply, when rendered as a pure service to a municipality for municipal solid waste management and related public health and sanitation functions, was held exempt under Sl. No. 3 of Notification No. 12/2017-Central Tax dated 28.06.2017. The request for a ruling on whether the recipient was a governmental authority was not answered because that question was outside the maintainable scope of the advance ruling application.

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Issues: (i) Whether the applicant's activity of bio-mining of legacy waste and site reclamation is classifiable under SAC 9994 and chargeable to GST at 18%. (ii) Whether the service supplied to the municipality is exempt under Sl. No. 3 of Notification No. 12/2017-Central Tax dated 28.06.2017. (iii) Whether the question whether the service recipient is a governmental authority is within the scope of advance ruling in the present application.

Issue (i): Whether the applicant's activity of bio-mining of legacy waste and site reclamation is classifiable under SAC 9994 and chargeable to GST at 18%.

Analysis: The activity involved excavation, screening, shredding, segregation, scientific disposal, and reclamation of an existing dump yard. The function was found to comprise both waste treatment and disposal and site remediation. Heading 9994 under the GST classification covers sewage and waste collection, treatment and disposal, and environmental protection services, including waste treatment and disposal services as well as site remediation and clean-up services.

Conclusion: The service is classifiable under SAC 9994 and attracts GST at 18%.

Issue (ii): Whether the service supplied to the municipality is exempt under Sl. No. 3 of Notification No. 12/2017-Central Tax dated 28.06.2017.

Analysis: The service was treated as pure service because no supply of goods was involved and the work was executed through manpower and machinery for waste management purposes. The recipient municipality was held to be a local authority under Section 2(69) of the CGST Act, 2017. The activity was also found to be in relation to a municipal function under Article 243W of the Constitution of India, including public health, sanitation conservancy, solid waste management, and bio-mining of dumpsites under the Solid Waste Management Rules, 2016.

Conclusion: The service supplied to the municipality is exempt under Sl. No. 3 of Notification No. 12/2017-Central Tax dated 28.06.2017.

Issue (iii): Whether the question whether the service recipient is a governmental authority is within the scope of advance ruling in the present application.

Analysis: The question sought a ruling on the status of the recipient, not on a supply undertaken by the applicant. The advance ruling mechanism is confined to matters relating to the applicant's own supply and to questions falling within Section 97(2) of the CGST Act, 2017. The Authority therefore declined to answer the question.

Conclusion: No ruling was given on this question as it was not maintainable within the advance ruling application.

Final Conclusion: The activity was held taxable under the classification entry, but the supply to the municipality was also held exempt under the specified notification, while the third question was left without a ruling for want of maintainability.

Ratio Decidendi: Bio-mining and reclamation of legacy waste constitute waste treatment and disposal and site remediation under SAC 9994, and pure services rendered to a local authority in relation to municipal solid waste management are exempt under the relevant exemption notification.

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