2026 (3) TMI 341

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....of GST exemption for solid waste management services provided to a Gram Panchayat under Notification No. 12/2017 dated 29.06.2017. & Under Section 98(4) of the KGST ACT, 2017. 2. The applicant is engaged in providing solid waste management services to Gram Panchayat in Gantiganahalli Grama Panchayat, Yelahanka Taluk, North Bengaluru. Further, the applicant states that the services as mentioned below are "pure services" and do not involve the supply of goods or works contract. The activities provided by the applicant are directly related to functions entrusted to panchayats under Article 243G of the constitution, specifically health and sanitation (including solid waste management). The services provided by the applicant are as follows:- ....

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....ram Panchayat in Gantiganahalli Grama Panchayat, Yelahanka Taluk, North Bengaluru. 5.2 Further, the applicant submits that the primary service provided to Gram Panchayat is solid waste management, which includes ensuring Cleanliness & Hygiene Maintaining zero-waste rural areas by following proper waste disposal techniques, Reducing Environmental Pollution, promoting waste segregation and recycling to minimize landfill usage and Enhancing Public Health & Safety. a) Waste Collection & Transportation:- Daily door-to-door collection of waste from households, markets, and public spaces, use of designated garbage trucks, auto tippers, and pushcarts, ensuring segregation at source (wet, dry, and hazardous waste). b) Waste Segr....

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....health and sanitation functions listed in the 11th Schedule of the Constitution (Article 243G). Hence, the applicant is in the opinion that the services provided to the Gram Panchayat are exempted from GST under Notification 12/2017-Central Tax (Rate)/Karnataka Tax dated 29.06.2025. PERSONAL HEARING PROCEEDINGS HELD ON 18.12.2025 7. C.A. Jayaram Srinivas Bhat, Authorised Representative of the applicant, assisted by C.A. Anil H.V, appeared for personal hearing proceedings and reiterated the facts narrated in their application. Further, the authorised representative have explained the applicant's position with reference to the issues raised in the AAR application. FINDINGS & DISCUSSION 8. At the outset we would like to make it....

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....ion 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." 11.1 From the above said entry of the notification it is observed that, in order to claim exemption on supply of Solid Waste Management Services two conditions should be satisfied:- i. Pure Services (excluding works contract service or other composite supplies involving any goods) provided to the Central Government, State Government or Union territory or local authority or a Governmental authority ii. 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 fun....

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.... 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 industries. 10. Rural housing. 11. Drinking water. 12. Fuel and fodder. 13. Roads, culverts, bridges, ferries, waterways and other means of communication. 14. Rural electrification, including distribution of electricity. 15. Non-conventional energy sources. 16. Poverty alleviation programme. 17. Education, including primary and secondary schools. ....