TaxTMI 
TaxTMI 
2020 (12) TMI 748
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....ampalayam Dharapuram, Tiruppur-638657 (hereinafter called the 'Applicant') is registered under the GST Vide GSTIN 33AACCS3411J1ZP. They are engaged in supplying services of Waste Management, Mechanized Road Sweeping, Business Support Staffing and other services relating to Integrated Facility Management. They have sought Advance Ruling on the following questions: 1. What is the classification for supply of services by the Applicant relating to waste collection, segregation, treatment, transportation and disposal services under the service agreements entered with both concessionaries in terms of notification 11/2017- C.T.(Rate) dated 28th June 2017? 2. Whether the activity of waste collection, segregation, treatment, transportation and disposal services carried out by the Applicant under the Service Agreements entered with both concessionaries is exempted from Goods and Services Tax in terms of entry no.3 of the Notification 12/2017-Central Tax (rate) dated 28.06.2017? The Applicant has submitted the copy of application in Form GST ARA - 01 and also submitted a copy of Challan evidencing payment of application fees of Rs. 5,000/ - each under sub-rule (1) of Rule....
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....d authorised the concessionaries to investigate, study, design, engineer, procure, finance, consent, operate and maintain the project and to exercise and enjoy the rights, powers, privileges, authorisations and entitlements as set forth in the said concession agreements. The obligations and activities to be carried out by the concessionaries are as below: * Daily door to door/primary collection, segregation and transportation of the solid waste * Collection and transportation of solid waste from canal/river banks * Collection and transportation of waste from Bulk Generation * Collection and transportation of Horticulture and Garden waste from public places * Street sweeping, collection and transportation of solid waste * Creating awareness about waste collection and disposal in the citizens of the project area by way of education and other programmes Further, the applicant has stated that the concessionaires are responsible for procuring waste transport vehicles, cleaning/sweeping machinery and related consumables. The Concessionaries are to create/construct following project activities- Data Control room, Call Centre, Worksh....
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....0th March 2020 for providing back to hack part of services of waste collection, treatment and disposal services which are required to be performed by the Concessionaires under the Concession Agreements. Though, two separate service agreements have been entered into between each of Concessionaire and the Applicant, various clauses relating to duties, responsibilities and the work to be done by each of them is same and identical. 2.4 The Obligations and activities to be carried out by the Concessionaires to the Authority are as under ♦ To procure and deploy complete infrastructure requested by the Authority including but not limited to vehicles along with e-rickshaws and cleaning machinery and its maintenance from time to time. ♦ To deploy drivers and operators for waste transport vehicles and cleaning machinery except e- rickshaws drivers. ♦ To provide fuel for waste transport vehicles, carry out repairs and maintenance and insurance waste transport vehicles along with e-rickshaws and cleaning machinery. ♦ To create, construct, operate and maintain the Project Facilities as per the Concession Agreement. ♦ ....
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....l but not limited to mere supply particular number of manpower to the Concessionaires. The manpower deputed by them will not work under control and supervision of the Concessionaires but work under their control and supervision and that this is substantiated on perusal of the clause relating to consideration which is based on the handling of waste collected, segregated, transported and disposed off on tonnage basis and not on the headcount basis. The applicant has stated that the Services provided by them under the Service agreements with the concessionaries are appropriately classifiable under SAC/Heading 9994 - Waste Collection, treatment and disposable services of the Annexure to Notification 11/2017-CT(R) dated 28.06.2017. They have further stated that the services are covered under entry 32(ii) of Notification No. 11/2017-C.T.(Rate) dated 28th June 2017 and liable to GST @ 18%(CGST9% +TNGST 9%) unless exempted otherwise . 2.7 On their understanding about the exemption from payment of GST for services supplied under the Service Agreements with Concessionaries, they have stated that they are not going to procure, create and construct the Project Facilities and assets; Various....
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.... • MAH/AAAR/SS-RJ/15/2018-19, dated 03.01.2019 in Appeal No. MAH/GST-AAAR-15/2018-19 [2019 (23) G.S.T.L. 473 (App. A.A.R-GST)] = 2019 (3) TMI 1567 - APPELLATE AUTHORITY FOR ADVANCE RULING MAHARASHTRA • Order No. 09/2018, dated 09.08.2018 in case No. 11/2018, IN RE: ANKIT TANDON AND ENTERPRISES 85 TOLLWAYS PVT LTD [2018 (17) G.S.T.L.499 (A.A.R.-GST)] = 2018 (9) TMI 1039 - AUTHORITY FOR ADVANCE RULING, MADHYA PRADESH • KAR ADRG 93/2019, dated 27.09.2019, IN RE: QUATRO RAIL TECH SOLUTIONS LIMITED [2019 (31) G. S.T. L. (A.A.R. -GST)] = 2019 (10) TMI 1134 - AUTHORITY FOR ADVANCE RULING, KARNATAKA • AAR Uttarakhand in Ruling No.10/2018-19, dated 22.10.2018 in Application No. 11/2018-19, IN RE: NHPC LIMITED [2018 (19) G.S.T.L. 349 (A.A. R. -GST)] = 2018 (11) TMI 1265 - AUTHORITY FOR ADVANCE RULINGS, UTTARAKHAND 2.8 The applicant has referred to the following recommendation of GST Council in its 25th Meeting held on 18.01.2018: "To reduce GST rate (from 18% to 12%) on the Works Contract Services (WCS) provided by sub-contractor to the main contractor providing WCS to Central Government, State Government, Union territory, a local a....
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.....T.L 275 (A.A.R.- GST)] = 2019 (10) TMI 944 - AUTHORITY FOR ADVANCE RULING, KARNATAKA * AAR West Bengal in the case of Mahendra Roy [2019 (29) G.S.T.L.533 (A.A.R.-GST)] = 2019 (9) TMI 1048 - AUTHORITY FOR ADVANCE RULING, WEST BENGAL * AAR West Bengal in the case of Time Tech Waste Solutions Private Limited [2019 (27) G.S.T.L. 45 (A.A.R. -GST)] = 2019 (6) TMI 1339 - AUTHORITY FOR ADVANCE RULING, WEST BENGAL * AAR, West Bengal in the case of Indrajit Singh [2019 (25) G.S.T.L. 590 (A.A.R.-GST)] = 2019 (6) TMI 486 - AUTHORITY FOR ADVANCE RULING, WEST BENGAL * AAR Rajasthan in the case of Municipal Corporation Pratapgarh [2019 (24) G.S.T.L. 301 (A.A.R-GST)] = 2019 (4) TMI 1400 - AUTHORITY FOR ADVANCE RULING, RAJASTHAN * AAR Tamilnadu in the case of Tamilnadu Water Investment Company Limited [2019 (21) G.S.T.L 342 (A.A.R-GST)] = 2019 (2) TMI 187 - AUTHORITY FOR ADVANCE RULING, TAMILNADU 2.11 They have also stated that Sovereign functions of local authority are also exempt under GST, in their instant case though the entry in Sl.No.3 of Notification 12/2017 CT(R) is relevant, entries in Sl.No 3A to 9 of the notification clearly specifies that....
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....by the Hon'ble Supreme Court and have relied on the following decisions: * Shriram Vinyl & Chemical Industries Vs. Commissioner of Cus. Mumbai [2001 (129) E.L.T. 278 (S.C.)] = 2001 (3) TMI 95 - SUPREME COURT * CC (Prev) Gujarat V. Reliance Petroleum Ltd. [2008 (227) E.L.T. 3 (S.C.)] = 2008 (5) TMI 13 - SUPREME COURT * Collector of C.Ex. Vs. Himalayan Co-Op. milk Product Union Ltd [2000 (122) E.L.T. 327 (S.C.)] = 2000 (11) TMI 140 - SUPREME COURT The applicant has stated that where such services are sub-contracted on back to back basis, the purpose of the exemption would be truly followed and implemented only by way of allowing the said exemption to all service providers in a chain, whether main contractor or sub-contractor. In view of the above, they have stated that supply of pure services whether by the Concessionaires (i.e. Main contractor) or by them(sub-Contractor) are ultimately provided to the Authority and the same are exempted from GST in terms of entry No. 3 of the Notification No. 12/2017-C.T.(Rate) dated 28th June 2017. 3.1 Due to the prevailing PANDEMIC situation and in order not to delay the proceedings, the appellant was addressed thr....
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....GCC), for supply of Daily door to door/primary collection of waste, segregation of the collected waste as per the norms, support in transportation of solid waste, Collection and support in transport of solid waste from canal / river banks; Collection and support in transportation of waste from Bulk Generation; Collection and support in transportation of Horticulture and Garden waste from public places: Street sweeping, collection and support in transportation of solid waste. The applicant has sought ruling on the following questions: 1. What is the classification for supply of services by the applicant relating to waste collection, segregation, treatment, transportation and disposal services under the service agreements entered with both concessionaries in terms of notification 11/2017? 2. Whether the activity waste collection, segregation, treatment, transportation and disposal services under the service agreements entered with both concessionaries is exempted from Goods and Services Tax in terms of entry no.3 of the Notification 12/2017-Central Tax (rate) dated 28.06.2017? 7. From the submissions before us, we find that the question raised before us are the c....
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....017. SAC 9994 as given in the said Annexure is extracted below: 629 Heading 9994 Sewage and waste collection, treatment and disposal and other environmental protection services 630 Group 99941 Sewerage, sewage treatment and septic tank cleaning services 631 999411 Sewerage and sewage treatment services 632 999412 Septic tank emptying and cleaning services 633 Group 99942 Waste collection services 634 999421 Collection services of hazardous waste 635 999422 Collection services of non-hazardous recyclable materials 636 999423 General waste collection services, residential 637 999424 General waste collection services, other nowhere else classified 638 Group 99943 Waste treatment and disposal services 639 999431 Waste preparation, consolidation and storage services 640 999432 Hazardous waste treatment and disposal services 641 999433 Non-hazardous waste treatment and....
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.... to an appropriate facility that processes waste iii. services of drop-off centres, transfer stations and container stations iv. ship-breaking v. dismantling of wrecks, such as cars, computers etc., in order to obtain and separate recoverable materials vi. consolidation, temporary storage and preparation of non-hazardous recyclable materials vii. transfer facility services of non-hazardous recyclable materials viii. recovery and preparation of non-hazardous recyclable materials, such as bailing, cleaning, sorting, volume reduction and similar preparation and consolidation of recyclable materials, for transportation to an appropriate facility that processes recyclable materials ix. consolidation, temporary storage and preparation of non-hazardous waste x. transfer facility services for non-hazardous waste xi. consolidation and preparation of non-hazardous waste for transportation to an appropriate facility that processes waste 999451 Sweeping and snow removal services This service code includes: i. street sweeping and cleaning services ii. gritting and salting of road....
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....le 243G of the Constitution or in relation to any function entrusted to a Municipality under article 243W of the Constitution NIL NIL On a cogent reading of the above, it is seen that the entry is applicable to • All Pure Services; • Provided to the Central/State Government or Union territory or Local authority or a Governmental Authority; • By way of any activity; • In relation to any function entrusted to ; • A Panchayat under Article 243G of the Constitution or ; • A Municipality under Article 243 W of the Constitution. Thus, the entry applies to Pure services provided to the defined clause of service recipients and the services are to be of any activity in relation to any function entrusted to a Panchayat/ Municipality under Article 243 G/243W of the Constitution. 9.3 In the case at hand, it is stated by the applicant that the supply made are the services covered under SAC 9994 and the concessionaires are responsible for the goods and consumables needed for the provision of such service. In Para 8 above, it is held by us that the supply of the applicant is covered under SAC 9994 and the....
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..... 321 (A.A.R-GST) In RE: V. K. Building Services Pvt. Ltd: Advance Ruling No. KAR ADRG 39/2019 dated 16.09.2019 = 2019 (10) TMI 523 - AUTHORITY FOR ADVANCE RULING, KARNATAKA Assessee, a Sub-contractor with main contractor provided Construction of Residential Complex Services to Bangalore Development Authority-It is held the works of Main Contractor covered under 3(vi) of the Notification and that of Sub-contractor covered under entry 3(ix) which specifically covers the works done by Subcontractors for those works under 3(vi) of the Notification No. 11/2017 The Notification specifically states at entry 3(ix), that the works covered under 3(vi) if undertaken by sub-contractor stands covered under 3(ix). This has no relevance to the case at hand 2. 2019 (23) G.S.T.L. 473 (App.A.A.R-GST) In RE: Shree Construction. Order No. Mah/AAAR/SS-RJ/15/2018-19 dated 03.01.2019 = 2019 (3) TMI 1567 - APPELLATE AUTHORITY FOR ADVANCE RULING MAHARASHTRA Assessee in the capacity of sub-contractor has undertaken works of works-contract for the works pertaining to Railways-covered under entry 3(v) of Notification No. 11/2017- C.T.(Rate) dated 28.06.2017 Entry at 3(v) referred do not spe....
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....GST Uttarakhand) In RE : NHPC Ruling No. 17/2018-19 dated 30.01.2019 = 2019 (3) TMI 837 - AUTHORITY FOR ADVANCE RULINGS, UTTARAKHAND The question raised is whether the exemption available to the Main-contractor under WCS is applicable to Sub-contractor The Ruling in the said case is not available and Finality not reached. Hence Not Applicable. 9.6 We further find that the applicant has stated that the services supplied by them are by way of activities in relation to function entrusted to a Municipality under Article 243 W of the Constitution and has claimed that the exemption is available for the functions. It is their claim that the word 'in relation to' has a very wide connotation and all their activities are relatable to the functions entrusted to Municipality under Article 243 W. The word of the notification is to be read homogeneously. The entry states that the Pure Services provided to the said class of recipients by way of activity entrusted to Panchayat/ Municipality. The notification does not exempt just the services which are activities in relation to the functions entrusted to Municipalities but specifies the class of recipients also. In as much as the recipient....
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.... said entry of the exemption notification is fulfilled by the applicant. 9.9 The applicant has further stated that the "doctrine of purposive interpretation" has to be adopted in their case. They have relied on certain Apex court decisions. On a perusal of the decisions quoted, though it is emphasized that an exemption notification should be construed directly, interpretation of the same would depend upon the nature and extent. 9.10 The applicant has further stated that where such services are sub-contracted on back to back basis, the purpose of the exemption would be truly followed and implemented only by allowing the said exemption to all service providers in a chain, whether main contractor or sub-contractor. This contention does not have merit in itself. In the connection, it might be logical to refer the observation of case of Karnataka Appellate Authority for Advance Ruling in the case of M/s Nurserymen Co-operative Society Limited wherein in similar facts the exemption under entry no 3 & 3A of the Notification No. 12/2017-C.T.(Rate) dated 28.06.2017 is claimed The relevant observation is extracted below: "14 It is a well settled law that exemption notification....