TaxTMI 
TaxTMI 
TaxTMI 
2026 (3) TMI 187
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....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 provides services under the Conservancy Department of Howrah Municipal Corporation (H.M.C.) for carrying of segregated waste from the secondary transfer point to the dumpsite in a segregated manner with own fuel-operated vehicle. 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 seeking an advance ruling in respect of following question: Whether the services provided by the Applicant to Howrah Municipal Corporation (H.M.C.) for carrying of segregated waste from secondary transfer point to dumpsite in segregate ....
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....mits that Sl. No. 3 of Notification No. 12/2017 exempts pure services (excluding works contract service or other composite supplies involving supply of goods) provided to a local authority by way of any activity in relation to functions entrusted to a Municipality under Article 243W. The Applicant's work consists solely of transportation and handling of waste and does not involve transfer of property in goods to the Corporation. 2.5 The vehicles deployed by the Applicant, the fuel consumed, and the machinery or manpower engaged are utilized for execution of the service and do not result in any transfer of ownership or property in goods to the Municipal Corporation. The consideration received is measured solely on the basis of quantity of waste transported and handled. Therefore, the supply made by the Applicant qualifies as a "pure service" within the meaning of Sl. No. 3 of the Notification. 2.6 Further, Sl. No. 3A of the said notification exempts composite supplies where the value of goods does not exceed 25 percent of the total value of supply, provided the supply is made to a local authority in relation to functions entrusted under Article 243W. Even assuming without admi....
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.... or Sl. No. 4 of Notification No. 12/2017-State Tax (Rate). 3. Submission of the Revenue 3.1 The Revenue has submitted that, as per the application filed by M/s Hari Narayan Singh (GSTIN - 19BANPS4245K1Z0), the applicant is engaged in providing services to the Howrah Municipal Corporation for carrying segregated waste from the secondary transfer point to the designated dumpsite in a segregated manner using its own fuel-operated vehicles. The activity relates to solid waste collection, segregation, transportation and disposal, which are mandatory municipal functions under Article 243W of the Constitution of India. 3.2 The Revenue has referred to Sl. No. 3 of the Table appended to Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017, which exempts pure services (excluding works contract service or other composite supplies involving supply of any goods) provided to the Central Government, State Government, Union territory, local authority or Governmental authority by way of any activity in relation to any function entrusted to a Panchayat under Article 243G or to a Municipality under Article 243W of the Constitution. 3.3 It has been stated that the services rendere....
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.... in segregate manner with own Fuel Operated vehicle are exempt under Notification No. 12/2017-State Tax (Rate), Sl. No. 3, 3A, or 4, being activities relating to functions entrusted to a Municipality under Article 243W of the Constitution? 4.5 Before going into the details of the discussion, we should discuss some concepts which will act as reference in the latter part of the discussion. Pure Service: This term has not been defined in the provisions of the GST Act. This term has reference in serial no. 3 of Notification No. 12/2017-Central Tax (Rate) Dated 28.06.2017, as amended. Pure Services exclude works contract service or other composite supplies involving supply of goods. So supply of services which does not involve any supply of goods can be regarded as pure service. Composite Supply: Section 2(30) of the GST Act defines Composite Supply as supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply. Article 243G: This....
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...., including welfare of the handicapped and mentally retarded. 27. Welfare of the weaker sections, and in particular, of the Scheduled Castes and the Scheduled Tribes. 28. Public distribution system. 29. Maintenance of community assets. Article 243W: This Article of the Constitution of India reads as under: Powers, authority and responsibilities of Municipalities, etc. - Subject to the provisions of this Constitution, the Legislature of a State may, by law, endow - (a) the Municipalities with such powers and authority as may be necessary to enable them to function as institutions of self-government and such law may contain provisions for the devolution of powers and responsibilities upon Municipalities, subject to such conditions as may be specified therein, with respect to - (i) the preparation of plans for economic development and social justice; (ii) the performance of functions and the implementation of schemes as may be entrusted to them including those in relation to the matters listed in the Twelfth Schedule; (b) the Committees with such powers and authority as may be necessary to enable them to ....
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....ed 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 3A Chapter 99 Composite supply of goods and services in which the value of supply of goods constitutes not more than 25 per cent of the value of the said composite supply 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] 4 Chapter 99 Services by governmental authority by way of any activity in relation to any function entrusted to a municipality under article 243W of the Constitution. Nil Nil 4.7 It is evident from the above table that the applicant's activity cannot qualify for serial number 4 since here the referred service is provided by governmental authority. The applicant is not a governmental authority. Governmental authority has been defined in Clause 2(zf) of the Notification supra as under: "Governmental ....
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....volving supply of any goods. 2. The service is to be provided to the Central or State Government or Union Territory or a local authority. 3. 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 4.11 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. Let us see whether Howrah Municipal Corporation can be considered as local authority. Section 2(69) of the CGST Act, 2017 defines 'local authority' as under; "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) a Municipal Committee, a Zilla Parishad, a District Board, and any other authority legally entitled to, or entrusted by the Central Government or any State Government with the control or management of a municipal or local fund; (d) a Canto....