TaxTMI 
TaxTMI 
2025 (11) TMI 1630
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....s follows. 4.1 Tiffot Private Limited ("the Applicant") is a company incorporated and registered in the State of Kerala, engaged in the business of solid waste management. The principal activity of the applicant is the systematic collection, handling, storage, bundling, transportation, and final disposal of non-recyclable plastic waste generated in various Panchayats and Municipalities across Kerala. 4.2 The Applicant has entered into a work agreement with Clean Kerala Company Limited (CKCL), a public sector undertaking wholly owned by the Government of Kerala. CKCL is entrusted with coordinating waste management operations across local self-government bodies and functions under the directions of the State Government. More than ninety percent of the Applicant's revenue is derived from services performed pursuant to this contractual arrangement. 4.3 In terms of the agreement, the Applicant collects non-recyclable plastic waste from designated collection points identified by CKCL and the concerned local self-government institutions. The collected material is transported to the Applicant's facilities, where it is segregated, compacted, and baled in accordance with tec....
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....any incorporated under the Companies Act with its entire shareholding held by the Government of Kerala, thereby fulfilling the requirement of ninety percent or more Government participation by way of equity and control. Further, CKCL has been specifically entrusted by the Government with the functions of solid waste management and sanitation, which are functions enumerated under Article 243W of the Constitution as municipal responsibilities. The governmental character and statutory mandate of CKCL are evidenced by its Memorandum and Articles of Association, which record its waste management 'objectives, the shareholding pattern reflecting complete Government ownership, official certificates issued by CKCL's Managing Director affirming its status, and Government Orders assigning to it the responsibility of coordinating waste management across local self-government institutions in Kerala. Accordingly, CKCL meets all statutory conditions prescribed under GST law for recognition as a Governmental Authority. 5.4 Now, the applicant is of the view that the services provided by them fall under SAC Code 9994(ii): "Sewage and waste collection, treatment and disposal. and other env....
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....r exemption from GST under Entry 3B of Notification No. 13/2023-Central Tax (Rate) dt. 19.10.2023. Now, Sl.No.3B of the Notification No. 13/2023 Central Tax (Rate) dated 19.10.2023 which amends the Notification No. 12/2017 CT (Rate) dated 28.6.2017, reads as follows :- SI.No. Chapter, Section, Heading, Group or Service Code (Tariff) Description of Services Rate (per cent.) Condition 3 Chapter 99 Pure services (excluding works contract service or other composite supplies involving supply of any. goods) provided to the Central Government, State Government or Union territory or local authority by way of any activity in relation to any function entrusted to a Panchayat under article 243G of the Constitution or in relation to any function entrusted to a Municipality under article 243W of the Constitution. Nil Nil 3B Chapter 99 Services provided to a Governmental Authority by way of - (a) water supply; (b) public health; (c) sanitation conservancy; (d) solid waste management; and (e) slum improvement and upgradation. Nil Nil Now it must be established that the services rendered by the applicant T....
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....shing, loading, unloading, transportation, processing and disposal of solid wastes; 8.5.3 Rule 3(52) "transportation" means conveyance of solid waste, either treated, partly treated or untreated from a location to another location in an environmentally sound manner through specially designed and covered transport system so as to prevent the foul odour, littering and unsightly conditions; 8.5.4 Rule 3(35) "processing" means any scientific process by which segregated solid waste is handled for the purpose of reuse, recycling or transformation into new products; 8.5.5 Rule 3(43) "secondary storage" means the temporary containment of solid waste after collection at secondary waste storage depots or MRFs or bins for onward transportation of the waste to the processing or disposal facility; 8.5.6 Rule 3(14) "co-processing" means use of non-biodegradable and non recyclable solid waste having calorific value exceeding 1500 kcal as raw material or as a source of energy or both to replace or supplement the natural mineral resources and fossil fuels in industrial processes; 8.5.7 Rule 3(16) "disposal" means the final and safe disposal of post proce....
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....icial pronouncements on the issue of exemption to services rendered to Governmental Authorities in relation to functions entrusted to Panchayats and Municipalities under Articles 243G and 243W of the Constitution. From the inception of the GST regime in 2017 up to 2021, pure services provided to the Central Government, State Government, Union Territory, local authority, Governmental Authority or Government Entity by way of any activity in relation to such constitutional functions were squarely covered under Entries 3 and 3A of Notification No. 12/2017-Central Tax (Rate), dated 28 June 2017. However, by Notification No. 16/2021-Central Tax (Rate), dated 18 November 2021 (effective 1 January 2022), the words "or a Governmental Authority or a Government Entity" were omitted from these entries, thereby withdrawing the exemption hitherto available to services rendered to such bodies even when those services pertained to municipal or panchayat functions. This amendment led to divergence in advance-ruling outcomes and substantial tax exposure for contractors performing essential civic duties on behalf of Governmental Authorities. In this background, a consistent stream of rulings illustra....