TaxTMI 
TaxTMI 
2022 (7) TMI 404
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....am, Chennai-600083 (hereinafter called the Applicant) are registered under GST with GSTIN 33AAMCS4438B1ZJ. The applicant has sought Advance Ruling on the following questions:- 1. Whether contracts received from various city corporations and a municipality towards Solid waste management is exempted from GST vide Sl.No.3 of Notification 12/2017-CT.(Rate) dated 28.06.2017? 2. Whether contracts received from various city corporations and municipalities towards removal of legacy waste dumped at dump site through bio-mining process is exempted from GST vide SI.No.3 of 12/2017-C.T.(Rate) dated 28.06.2017? 3. Whether GST TDS is applicable or not for the exempted contracts? 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 104 of CGST rules 2017 and SGST Rules 2017. 2.1 The applicant has stated that they have more than 18 years of experience in Collection and Transportation (C & T). They are handling about 800 metric tons of waste per day from different urban local bodies. They are having more than 2000 employees on....
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....o. LOA No. LOA Dt. Customer Name Contract Value- (Rs ) I. Removal of the legacy waste of through Bio Mining process to reclaim the existing dump yard: 1 Roc.No. 1207/2018/E1 15/11/2018 Avadi Municipality - Sckkadu Compost Yard 4,30,47,919.20 2 Roc.No. 945/18/E1 11/12/2018 Gudalur Municipality - Pethukulam 3,96,42,121.00 3 Roc.No. 1899/18/E1 14/12/2018 Rasipuram Municipality 2,75.03.000.00 4. S.W.M.C.NO. A7/1034/2018 8/03/2019 Greater Chennai Coporation - Atthipattu Dump Site 6,02,85,137.00 5 S.W.M.C. No. A7/1035/2018 8/03/2019 Greater Chennai Coporation - Pallikaranai Dump Site 2.62,56.867.00 6 S.W.M.C. No. A7/3290/2018 8/03/2019 Greater Chennai Coporation - Saathangadu Dump Site 8,79,44,696 00 7 Roc. No. E/3209/2015(Biomin) 27/10/2020 Thoothukudi Smart City Limited 17,54,71,000.00 8 Roc. No.2256/2020/E1 14/12/2020 Tambaram Municipality - Venkadamanglam Dump 8,84,50,000.00 II. Revamping of Dump Site through Bio Mining to Recover the land : 1 Roc.No. 343/2018/E1 13/12/2018 Villupuram Municipality &nbs....
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....ictional authority has not furnished any comments on the question raised by the applicant and hence, it is construed that there are no cases are pending on the questions raised by the applicant in their jurisdiction. 5. The State Jurisdictional authority has furnished that no proceedings are pending in respect of the applicant. 6. We have carefully examined the statement of facts, supporting documents filed by the Applicant along with application, oral submissions made at the time of Virtual hearing, submissions made after hearing. The applicant has been awarded the work of removal of legacy waste through biomining process to reclaim the existing dumpyard, revamping of dumpsite through biomining to recover land, maintaining the micro compost centers and processing wet waste, labour contract for collection and removing wet waste and bulk waste. The applicant is before us seeking ruling on the following questions: - 1. Whether contracts received from various city corporations and a municipality towards Solid waste management is exempted from GST vide Sl.No.3 of Notification 12/2017-C.T.(Rate) dated 28.06.2017? 2. Whether contracts received from various city co....
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....75.03.000.00 4. S.W.M.C.NO. A7/1034/2018 8/03/2019 Greater Chennai Coporation - Atthipattu Dump Site 6,02,85,137.00 5 S.W.M.C. No. A7/1035/2018 8/03/2019 Greater Chennai Coporation - Pallikaranai Dump Site 2.62,56.867.00 6 S.W.M.C. No. A7/3290/2018 8/03/2019 Greater Chennai Coporation - Saathangadu Dump Site 8,79,44,696 00 7 Roc. No. E/3209/2015(Biomin) 27/10/2020 Thoothukudi Smart City Limited 17,54,71,000.00 8 Roc. No.2256/2020/E1 14/12/2020 Tambaram Municipality - Venkadamanglam Dump 8,84,50,000.00 II. Revamping of Dump Site through Bio Mining to Recover the land : 1 Roc.No. 343/2018/E1 13/12/2018 Villupuram Municipality III. Maintaining the Micro Compost Centers and processing the wet waste : 1 S.W.M.C. No. 47/0109/2020 13/08/2020 Greater Chennai Corporation - South Region Zones 5,81,47,215.00 IV. Labour Contract - Collection / Removing of wet waste and Bulk Waste: 1 S.W.M.C. No. A7/2117/2019 24/10/2019 Greater Chennai Corporation - Central Asphaltic Plant - - 2 No.1981/2018/H1 25/06/2020....
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....services one by one based on the nature and scope of work and discuss on the eligibility of specific services being Pure services, provided by the applicant for the exemption under SI.No.3 of Notification 12/2017-C.T.(Rate) dated 28.06.2017 (as amended) which is the first criteria. (i) Removal of legacy waste through Bio mining process to reclaim the existing dump yard. The contracts entered into for Bio mining are listed below: SI.No LoA No. and date Customer Name Scope of work Invoices Quantity Processed 1 Roc.No.1207/ 2018/E1 dated 15.11.2018 Avadi Municipality-Sekkadu compost yard Removal of legacy waste of 64174 cum through biomining process Invoices raised till 31.03.2022 59,168.385 Cu.mtr 2 Roc No. 945/18/E1 dated 11.12.2018 Gudalur Municipality-Pethukulam Removal of legacy waste of 59110 cum through biomining process Invoices raised till 01.03.2022 29,650 Cu.mtr 3 Roc NO.1899/18/E1 dated 14.12.2018 Rasipuram Municipality Reclamation of existing dump yard at compost yard (Biomining) Invoices raised till 31.03.2022 24915 Cu.mtr 4 S.W.M.C No. A7/1034/2018 dated 08.03.2019 GCC-Atthipattu dump....
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.... Invoices raised till 31.03.2022 From the documents furnished by the applicant, the contractor (Applicant) should maintain and process, the wet waste design capacity of 38.96 MT/day at 13 location of GCC-Southern region zones 11, 12&13 by employing labours, operators; process the waste in an eco-friendly and non-polluting process and the by-product of manure to be handed over to GCC. Here the service receiver namely the GCC will only hand over the existing centers for maintenance and processing of wet waste. Thus the contractor namely the applicant will be providing the service of maintenance of such Micro compost centers at their own cost by employing labours and operators. Hence the services rendered are found to be 'Pure services'. (iii) Labour contract-collection removal of wet waste and bulk waste Sl.No LoA No. and date Customer Name Scope of work Invoices 2 No.1981/2018/H1 dated 25.06.2020 Tambaram Municipality Supply of 161 labourers to collect and clear solid waste Invoices raised till 31.03.2022 3 NO.198/2019/H1 dated 15.07.2020 Thiruverkadu Municipality Supply of 192 labourers to collect and clear solid waste In....
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....ay. The contractor has to identify potential buyers, sell the same at price fixed by them. The plant will be maintained by the contractor. Finally the contractor shall be responsible for asset transfer on completion of concession period or the closure period on working conditions to GCC without any cost. The contractor will pay royalty fee for the land allotted by GCC. From the above points of the agreement, it is observed that the facility viz., BIO-CNG will be built, operated by the applicant and will be transferred to the GCC without any cost at the end of the agreed upon period. Thus it is seen that the work involved is a composite supply of goods and services as it involves transfer of facility built by the contractor which would include the Plant and machinery and support structures. Hence this supply of the applicant is not 'Pure services'. Therefore, we find that the contract entered into for the conversion of wet waste into BIO-CNG does not satisfy the first criterion of being 'Pure services' and is found not eligible for exemption under SI.No.3 Notification 12/2017-C.T. (Rate) dated 28.06.2017(as amended). 8.3 Apart from being pure services,....
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....anchayats of census towns and urban agglomerations. - The local authorities and Panchayats shall, - (a) prepare a solid waste management plan as per state policy and strategy on solid waste management within six months from the date of notification of state policy and strategy and submit a copy to respective departments of State Government or Union territory Administration or agency authorised by the State Government or Union territory Administration; ......................................... (zh) stop land filling or dumping of mixed waste soon after the timeline as specified in rule 23 for setting up and operationalisation of sanitary landfill is over; (zi) allow only the non-usable, non-recyclable, non-biodegradable, non-combustible and nonreactive inert waste and pre-processing rejects and residues from waste processing facilities to go to sanitary landfill and the sanitary landfill sites shall meet the specifications as given in Schedule-I, however, every effort shall be made to recycle or reuse the rejects to achieve the desired objective of zero waste going to landfill; (zj) investigate and analyse all old open dumpsites and exist....