TaxTMI 
TaxTMI 
2025 (12) TMI 988
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....gulations, 2018. 1.1 At the outset, we would like to make it clear that the provisions of the Central Goods and Services Tax Act, 2017 (the CGST Act, for short) and the West Bengal Goods and Services Tax Act, 2017 (the WBGST Act, for short) have the same provisions in like matter except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the WBGST Act. Further to the earlier, henceforth for the purposes of these proceedings, the expression 'GST Act' would mean the CGST Act and the WBGST Act both. 1.2 The applicant is engaged in operation and maintenance of corporation & municipalities machineries including operators under solid waste management, sewerage and drainage department and public health services. 1.3 The applicant has made this application under sub-section (1) of section 97 of the GST Act and the rules made there under raising following questions vide serial number 14 of the application in FORM GST ARA-01: Whether the operation and maintenance services provided to Municipalities and Corporations are exempt f....
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.... Eligibility for Exemption: • The applicant contends that the services are rendered directly to municipalities which are government entities performing statutory functions. • The services are essential for public health, sanitation and environmental protection aligning with constitutional obligations. 2.3 The applicant refers SWM Rules 2016, CPHEEO guidelines and municipal mandates that require such services. The applicant put emphasis on non commercial nature of the services and their role in fulfilling obligatory municipal functions. 3. Submission of the Revenue 3.1 The concerned officer from Bally Charge submits written submission dated 15.09.2025 and expresses the following: • The applicant likes to state that the services are actually provided to Municipalities and Corporations which is a local authority within the meaning of section 2(69) of the CGST Act, 2017 and is entitle to get exemption vide notification no 12/2017-Central tax (Rate) dated 28.06.2017 as per the twelfth schedule read with 243W of the Constitution of India. • According to Notification No 12/2017-Central Tax (Rate) dated 28.06.2017, any pure lab....
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....d out various kinds of operation and maintenance services in respect of different municipal corporations and municipalities within the state. Some of the work orders are placed on records. On perusal of the said work orders we find the following kinds of activities are carried out by the applicant. 1. Annual operation & maintenance contract of movable compactor 2. Annual maintenance contract for Baxy SWM vehicles for running & preventive servicing 3. Annual maintenance contract for four wheeled box tipper for repairing, running & preventive servicing 4. Annual operation & maintenance contract of Jetting-cum-Suction machine for operation, cleaning & washing, greasing, blower servicing 5. Engaging unskilled labour and driver for cleaning Ganga ghats for special cleanliness drive 6. Cleaning & maintenance of municipality office with sufficient manpower along with some machinery 7. Maintenance contract for four wheeled auto tipper for repairing, running & preventive servicing 8. Operation & preventive maintenance of Rope Bucket Machine 9. Operation & maintenance contract of Deep Suction Vehicle 10....
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....ion of powers and responsibilities upon Panchayats at the appropriate level, subject to such conditions as may be specified therein, with respect to - (a) the preparation of plans for economic development and social justice; (b) the implementation of schemes for economic development and social justice as may be entrusted to them including those in relation to the matters listed in the Eleventh Schedule. The Eleventh Schedule as available in the Constitution of India downloaded from the official website of Legislative Department, Ministry of Law and Justice, Government of India (https://legislative.gov.in) contains the following entries in respect of Article 243G: 1. Agriculture, including agricultural extension. 2. Land improvement, implementation of land reforms, land consolidation and soil conservation. 3. Minor irrigation, water management and watershed development. 4. Animal husbandry, dairying and poultry. 5. Fisheries. 6. Social forestry and farm forestry. 7. Minor forest produce. 8. Small scale industries, including food processing industries. 9. Khadi, village and cottage i....
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.... 1. Urban planning including town planning. 2. Regulation of land-use and construction of buildings. 3. Planning for economic and social development. 4. Roads and bridges. 5. Water supply for domestic, industrial and commercial purposes. 6. Public health, sanitation conservancy and solid waste management. 7. Fire services. 8. Urban forestry, protection of the environment and promotion of ecological aspects. 9. Safeguarding the interests of weaker sections of society, including the handicapped and mentally retarded. 10. Slum improvement and upgradation. 11. Urban poverty alleviation. 12. Provision of urban amenities and facilities such as parks, gardens, playgrounds. 13. Promotion of cultural, educational and aesthetic aspects. 14. Burials and burial grounds; cremations, cremation grounds; and electric crematoriums. 15. Cattle pounds; prevention of cruelty to animals. 16. Vital statistics including registration of births and deaths. 17. Public amenities including street lighting, parking lots, bus stops and public conveniences. ....
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....hand, in order to qualify for Serial no. 3A of the Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017, as amended by Notification No. 02/2018 - Central Tax (Rate) Dated 25.01.2018 the following conditions are to be fulfilled simultaneously: 1. The service must be a composite supply of goods and services. 2. The value of supply of goods should not constitute more than 25% of the total value of supply. 3. The service is to be provided to the Central or State Government or Union Territory or a local authority or a Governmental authority or a Government Entity. 4. The service provided must be done by way of any activity in relation to any function entrusted to a Panchayat or Municipality under article 243G or 243W of the Constitution of India respectively. 4.6 So far as the activities mentioned in the application for advance ruling is concerned the second and third conditions are fulfilled. The applicant provides the service to Howrah Municipal Corporation, Baranagar Municipality and Uttarpara-Kotrung Municipality. All these are local authorities as per Section 2(69) of the CGST Act, 2017. Clause (b) of this section provides that "local ....
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....le, the annual operation & maintenance contract of movable compactor in respect of Baranagar Municipality includes supply of spare parts. The other contracts may not have clear inclusion of spares and other goods, but maintenance of machineries and vehicles may involve supply of goods in the form of spare parts or other goods. The applicant failed to provide any information or evidence in respect of supply of goods, if any required for maintenance works of the machineries and vehicles. The aforementioned supplies should be regarded as composite supply where the principal supply is that of maintenance of movable goods in the form of vehicles and machineries. These supplies involve supply of goods also. As we have already discussed, the exempt nature of such supplies will depend on the ratio of value of goods involved in the total value of the supply. If the value of goods is not more than 25% of the total value of supply, the supply will qualify for serial no. 3A of the table in Paragraph 4.6 supra. In view of the foregoing, we rule as under: RULING Whether the operation and maintenance services provided to Municipalities and Municipal Corporations are exempt from GST....