Waste remediation services fall under Heading 9994, but pure services for municipal waste management qualify for GST exemption.

Waste remediation, bio-mining, and scientific disposal of legacy waste were classified under Heading 9994 as sewage, waste collection, treatment, disposal, and environmental protection services, so GST at 18% applied. The activity was also treated as pure services because no goods were supplied, and the recipient qualified as a Governmental Authority established under State law. As the services related to solid waste management, a municipal function under Article 243W, the conditions for exemption under Sl. No. 3 of Notification No. 12/2017-CT (Rate) were satisfied, and the services were held exempt.

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Issues: (i) Whether the services of remediation of waste dump sites and disposal of waste fractions fall under SAC 9994 and attract GST at 18%; (ii) Whether such services, when rendered as pure services to a Governmental Authority in relation to a municipal function, are exempt under Sl. No. 3 of Notification No. 12/2017-CT (Rate) dated 28.06.2017.

Issue (i): Whether the services of remediation of waste dump sites and disposal of waste fractions fall under SAC 9994 and attract GST at 18%.

Analysis: The work involved excavation, screening, segregation, bio-mining, and scientific disposal of legacy waste. The activity was held to comprise site remediation as well as waste treatment and disposal. On classification, the service was placed broadly under Heading 9994, with the remediation component falling within Group 99944 and the waste processing component falling within Group 99943. The service was therefore treated as falling within the classification for sewage, waste collection, treatment, disposal, and environmental protection services.

Conclusion: The service falls under SAC 9994 and is chargeable to GST at 18%.

Issue (ii): Whether such services, when rendered as pure services to a Governmental Authority in relation to a municipal function, are exempt under Sl. No. 3 of Notification No. 12/2017-CT (Rate) dated 28.06.2017.

Analysis: The service involved no supply of goods and was therefore treated as pure services. The recipient was found to be a Governmental Authority because it was established by a State Legislature enactment. The underlying activity related to solid waste management, which is a function entrusted to a municipality under Article 243W of the Constitution. The statutory conditions for the exemption entry were therefore satisfied.

Conclusion: The services are exempt under Sl. No. 3 of Notification No. 12/2017-CT (Rate) dated 28.06.2017.

Final Conclusion: The ruling determines both the classification and taxability of the services, while declining to answer the third question as outside the advance ruling scope.

Ratio Decidendi: Waste remediation and bio-mining services are classifiable under Heading 9994, and pure services rendered to a Governmental Authority in relation to a municipal function qualify for exemption under the relevant notification.

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