TaxTMI 
TaxTMI 
2026 (8) TMI 895
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....obtained by the applicant by fraud or suppression of material facts or misrepresentation of facts, shall render such ruling to be void ab initio in accordance with Section 104 of the Act. 5. The provisions of both the Central Goods and Services Tax Act and the Tamil Nadu Goods and Services Tax Act (herein referred to as the Act) are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Services Tax Act would also mean a reference to the same provisions under the Tamil Nadu Goods and Services Tax Act. M/s JAY KAY TRANS, having place of business at 9/11, First Floor, Valarmathi Nagar Second Street, Kolathur, Chennai-600099 (hereinafter called as the "Applicant") has registered with GSTIN 33BYXPS6648Q2ZZ under the Goods and Services Tax Act. They have filed this application for advance ruling under Section 97 of the CGST Act, 2017, and corresponding provisions under the Section 97 of TNGST Act, 2017. The Applicant has made a payment of application fees of Rs. 10,000/- under sub-rule (1) of Rule 104 of CGST Rules, 2017 and TNGST Rules, 2017. 2. Statement of relevant facts hav....
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....ing and cleaning of all common areas on daily basis within the Burial ground campus and also undertake collection of waste, which should be dumped at the 1100 Lt compactor bins on daily basis. c) The Applicant shall provide 218 units of 120 Lt rotomac bins along with sweeping kits for each of the personnel for collecting wastage and garbage. d) The Applicant shall provide 92 units of 1100 litre capacity compactor bins (for both dry and wet waster) at the entry of each housing unit. e) The collected waste should be segregated and disposed as wet and dry waste in the compactor bin placed at each location which shall be further cleared by the Corporation. f) The Applicant shall provide 1308 nos. of Coco Broom, 872 nos. of Bass Broom, 872 nos. of Iron Rake, 872 nos. of Penku, 167.90 tons of Bleaching powder, 335.80 tons of Lime powder. g) Further, the Applicant also provides the welfare items required by the personnel deployed such as 524 Uniforms, 6288 gloves and mask, 524 shoe set, 1048 caps, 1048 reflecting PPE kit, 262 rain coat and 95630 mask are also procured by the bidder during the contract period of twelve months at his own cost of ....
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....ork commenced in the month of August 2025 wherein the contract value of Rs. 8,54,91,000/- towards service charge of upkeeping and maintenance of Burial ground includes manpower, consumables, and welfare kit for a period of 12 months. Accordingly, the Applicant in pursuance of execution of the work raised the following invoices: Invoice no. Date of invoice Period Amount GST collected JK/2025/26/091 28.11.2025 20.08.2025 to 31.08.2025 2757780 Nil JK/2025-26/092 28.11.2025 01.09.2025 to 30.09.2025 7124250 Nil 13. The applicant submitted that the above invoices have been raised after the approval of an individual evaluation agency appointed by the corporation to monitor and approve the services done by the applicant. 14. Under these circumstances the applicant is filing the present clarification seeking to clarify whether the activity of the applicant in rendering the services of upkeeping and maintenance of Burial ground which includes manpower, consumables, and welfare kit, is eligible for exemption in Entry 3A of the Notification 12/2017 dated 28.06.2017. The applicant has filed the present application for advance ruling seeking ....
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.... (Rate), three conditions have to be cumulatively satisfied: a) The supply must be a 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. b) Such service must be provided to the Central Government, State government or Union Territory or Local authority. c) If provided to a local authority such service must be 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. 2.3. The applicant submitted that they satisfied all the three pre-conditions stipulated in sl.no.3 of Notification No. 12/2017 Central Tax (Rate) and is entitled to the impugned exemption as discussed hereunder: (a) Supply is a composite supply of goods and services 1. The applicant submitted that vide agreement dated 16.09.2025 they shall provide services (as specified in Clause 2 of the RFP) to the Greater Chennai Corporation in the following manner: a) The Applicant shall deploy 262 personnel for u....
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....t with respect to the consumables, welfare kit used for the purpose of upkeeping and maintenance of burial grounds, there is no transfer of ownership or possession to the Greater Chennai Corporation. It is merely used for the purpose of work and the same is left as such once the contract period expires. 5. Therefore, it is submitted that the Applicant satisfies the first pre-condition for entitlement to the exemption under Serial No 3 of Notification 12/2017-Central Tax (Rate). The supply is a composite supply of goods and services. (b) Such service is provided to a local authority (i) The applicant submitted that Section 2(69) of the Act defines "local authority" to mean: a) A "Panchayat" as defined in clause (d) of the article 243 of the constitution; b) A "Municipality" as defined in clause (e) of the article 243P of the constitution; c) A Municipal Committee, a Zila 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 Cantonment board as defined in section 3 of the Cant....
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....n is that such pure services rendered to a local authority must be in relation to a function entrusted to a Municipal Corporation under Article 243-W of the Constitution. (ii) Part IX-A of the Constitution of India, inserted by the Constitution (Seventy Fourth) Amendment Act, 1992, deals with local-self Government and bears the title "municipalities". The term "municipality" is defined under Article 243-P(e) to mean an institution of self-government constituted under Article 243Q. (iii) Article 243Q stipulates that there shall be constituted in every state, in accordance with the provisions of Part IX-A: (a) a Nagar Panchayat (by whatever name called) for a transitional area, that is to say, an area in transition from a rural area to an urban area; and (c) a Municipal Corporation for a larger urban area. (iv) Article 243W provides for the powers, authority and responsibilities of municipalities. It states that, subject to the other provisions of the Constitution, the Legislature of a state may, by law, endow the Municipalities with such powers and authority as may be necessary to enable them to function as institutions of self-government....
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....ication of services, the AR said that the probable SAC would be 999424-General Waste collection services, other not elsewhere specified. 5.2 On second query on eligibility of exemption, the AR said that the value of goods involved in the impugned services is only around 1.23% which is way below the 25% stipulated in the notification no. 12/2017 CT(Rate) also backed by a Chartered Accountant certificate. 5.3 The AR also submitted a few images of sweeping and cleaning of roads between tombs, cleaning activities in burial grounds and removal of garbage undertaken by the applicant. 5.4 The applicant was requested to furnish complete set of tender/Agreement copies with Greater Chennai Corporation by email. 6. Discussions and Findings: 6.1 We have carefully examined the submissions made by the applicant in their advance ruling application and the submissions made during personal hearing. We have also considered the issues involved, the relevant facts and the applicant's submissions/interpretation of law with respect to the questions on which the advance ruling is sought. Admissibility of queries raised in the application: 6.2 We find that the queries involving Cl....
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....ion of impugned services is covered under residuary heading SAC 9997 - Other Services not elsewhere specified., the reasons being the activity involves maintenance, sanitation, conservancy and upkeep of burial ground; it does not amount to Works Contract as defined under Sec.2(119) of the CGST Act; it is not merely manpower recruitment or supply even if manpower is used to execute the work and it is also not transport service; that the impugned services done by the applicant qualifies for exemption under sl.no.3A of the impugned notification subject to the condition that the value of composite supply does not exceed 25% of total value of supply. 6.4.2 On examination, we find that the contract awarded to the applicant by the GCC is upkeep and maintenance of burial grounds in specified zones wherein the predominant activity is sweeping, cleaning, garbage collection. On a perusal of Annexure to Notfn. No.11/2017-Central Tax (Rate) dt.28.06.2017 enlisting the Scheme of Classification of Services, it is seen that the impugned services would merit to be classified as proposed by the applicant under Heading 999424 as General cleaning services-others, which is more appropriate and speci....
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....of the agreement with the GCC it is amply clear that the scope of work encompasses services undertaken by way of daily sweeping and cleaning of all common areas within the burial ground campus, including internal roads, open area, graveyard area, toilet, cremation area, or any building at least twice a day; the deployed staff shall also undertake collection of waste to be dumped at the compactor bins on daily basis. Further, the bidder shall procure and provide 120Ltr rotomac bins along with sweeping kits for each of the personnel for collecting waste and garbage and procure 1100 Itr capacity compactor bins for both dry and wet waste; the applicant shall provide the consumable, tools, materials, equipment etc like broom, iron rake, bleaching powder, lime powder etc and welfare items for the personnel like uniform sets, gloves, masks, caps raincoats, reflecting PPE kit, shoe etc. at applicant's own cost. (b) At this juncture it is imperative on our part to examine whether the impugned activities undertaken by the applicant would constitute 'Composite supply of goods and services' as stipulated in the impugned notification. Sec. 2(30) of the CGST Act, 2017 define....