TaxTMI 
TaxTMI 
2022 (7) TMI 404
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....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 the ground performing C & T and fleet of 150+ vehicles. They ha....
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....rough 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 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 Coporation - South Region Zones 5,81,47,215.00 IV. Labour ....
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....ully 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 corporations and municipalities towards removal of legacy waste dumped at dump site through bio-mining process is exempted from GST vide Notification 12/2017-C.T.(Rate) dated 28.06.2017? 3. Whether GST TDS is applicable or not for the exempted contracts? 6.2 The question no.1 and 2 relates to applicability of Notification which is covered under the ambit of this ....
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.... 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 Tambaram Municipality - 3 No. 198/2019/H1 15/07/2020 Thiruverkadu Municipality - It is evident from the above Annexure that the Contract details mentioned in SI.No.I-1 to 8 and under Sl.NO II -1 is for removal of legacy waste through biomining process to reclaim the existing dump yard and recover the land entered into with the Corporations and Municipalities; SI.No.Ill-1 is for Micro composting done for Greater Chennai corporation, South Zone; Sl.No.IV-1 is for Bio CNG process carried on at Central Asphaltic Plant and that mentioned at Nos.2 & 3 are....
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....ining 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 dumpsite Removal of legacy waste through biomining process Invoices raised till 31.03.2022 41949 Cu.mtr 5 S.W.M.C No. A7/1035/2018 dated 08.03.2019 GCC-Pallikarnai dumpsite Removal of legacy waste through biomining process Invoices raised till 28.09.2021 40853 Cu.mtr 6 S.W.M.C NO.A7/3290/2018 dated 08.03.2019 GCC-Saathangadu dumpsite Removal of legacy waste through biomining process Invoices raised till 09.03.2022 31768 Cu.mtr 7 Roc No.E1/3209/20 15 dated 27.10.2020 Thoothukudi Smart city ltd Removal of legacy waste of 227000 cum through biomining process No invoices furnished No invoices furnished 8 Roc No.2256/2020/ E1 dated 14.12.2020 Tambaram Municipality-venkadamang alam dump s....
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....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 Invoices raised till 31.03.2022 In respect of the above two contracts, the scope of work involves only supply of labourers for door to door segregation, collection of waste from every household in the areas allocated by the Municipalities and depositing such waste in the Micro compost centers and onsite compost centers provided by the Municipalities. The Municipalities will provide tools and implements such as carts and bins which shall be returned by the contractor to the Municipality. Thus the applicant is entrusted with the work of supply of manpower to execute collection and deposit of waste which is "Pure service'. (iv) Central Asphaltic Plant site Zone 8 in DFBQT model:- SI.No. LoA No. and date Customer Name Scope of work Contract Period Invoices 1 S.W.M.C No. A7/2117/2019 dated 24.10.2019 GCC-Central Asp....
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.... 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, it is to be seen that the service is provided to Central Government/State Government/Union Territory/Local authority. Section 2(69) of the GST Act defines Local Authority as follows:- (69) "local authority" means,- (a) a "Panchayat" as defined in clause (d) of article 243 of the Constitution; (b) a "Municipality" as defined in clause (e) of article 243P of the Constitution; (c)............................... Clause (e) of article 243P of the Constitution defines "Municipality", which reads as (e) "Municipality" means an institution of self-government constituted under article 243Q; Article 243Q speaks about the constitution of Municipalities and as per clause (c) of Article 243Q, Municipal Corporation is also considered as Municipality. Article 243Q reads as below: 243Q. Constitution of Municipalities.- (1) There shall be constituted in every State, - (a) a Nagar....
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.... 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 existing operational dumpsites for their potential of bio-mining and bio-remediation and wheresoever feasible, take necessary actions to biomine or bio-remediate the sites; On a cogent reading of SI.No. 6 of the Twelfth Schedule to the Constitution and Rule 15 of the Solid Waste Management Rules 2016, it is evident that it is the duty of the local authority to investigate, analyse the existing dumpsites for their potential bio-mining and bio-remediation and wherever feasible has to take actions to bio-mine or bio-remediate the sites under 'Solid Waste Management'. In the case at hand the function of bio-mining. Bio-remediation of the dump yard and maintenance of Micro composting center is entrusted to the applicant and therefore the final criterion is also satisfied. 9. Based on the above, we find that the contracts received from various city corporations and municipalities towards removal of legacy waste dumped at dump site through bio-mining process is "Pure services' rendered to a local aut....