TaxTMI 
TaxTMI 
2026 (8) TMI 894
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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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....bject to the conditions mentioned therein. b) The parties were to execute an agreement within seven days of the receipt of the work order. 7) Pursuant to the work order dated 02.05.2025, the Applicant entered into an Agreement for upkeeping and maintenance of the Tamil Nadu Urban Habitat Development Board Housing Units in Zone 15 - Outer Perumbakkam with the Greater Chennai Corporation represented by its Executive Engineer, Solid Waste Management Department, vide Agreement dated 02.06.2025 with the reference SWMC No A7/1362/2025. 8) Further, Clause 6(b) of the Agreement dated 02.06.2025 provided that the services specified in the Request for Proposal (hereinafter referred to as "RFP") document shall form an integrated part of the said agreement. 9) The agreement dated 02.06.2025 stipulated that the Applicant 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 369 personnel for undertaking upkeeping and maintenance in the manner for each housing unit as prescribed by the Corporation. In addition, supervisors shall also be provided. b) The aforesaid d....
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....rpetual succession and a common seal with power, subject to the provisions of this Act, to acquire, hold and dispose of property and may by the said name sue and be sued. 12) Therefore, the GCC being the Oldest Municipal Institution, the services provided by the applicant are in relation to function entrusted to a Municipal Corporation as laid down in Article 243W of the Constitution of India. 13) It is submitted that the service charge for the execution of work awarded under the agreement dated 02.06.2025 was proposed to be paid on pro rata basis in two stages:- a) Stage 1: 60% of monthly service charge - Fixed payment - wherein it will be released ordinarily within 30 days of submission of invoices. b) Stage 2: 40% of monthly service charge - Performance based payment - wherein it will be paid after evaluation by the independent agency and due deducting of penalty if any based on the KPIs (Key Performance Indicators) as defined in clause 22 of the Agreement. Further, the performance payment will also be released ordinarily in 30 days of submission of invoices. 14) In furtherance to the Agreement dated 02.06.2025, the work commenced in the month of June ....
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..... Chapter, Section, Heading, Group of Service code (Tariff) Description of Services Rate (%) Condition (1) (2) (3) (4) (5) 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 2.2. The applicant submitted that to qualify for exemption under sl.no. 3A of the Notification 12/2017-Central Tax (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 s....
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....ts along with the consumables, tools, materials and equipment as prescribed in clause (3) of the agreement dated 02.06.2025. 3. The value of goods in the present case does not exceed 25% of the value of composite supply that has been provided to the Greater Chennai Corporation. Further, in order to prove the same, the Applicant is enclosing the certificate from the Chartered Accountant to establish the fact that the value of goods as per the tender agreement dated 02.06.2025 does not exceed 25% of the value of composite supply. 4. Additionally, the consumables that have been provided by the Applicant to the personnel is only for the purpose of completion of work with regards to the upkeeping and maintenance of Tamil Nadu Urban Habitat Development Board Housing Units; that with respect to the consumables, welfare kit used for the purpose of upkeeping and maintenance of Tamil Nadu Urban Habitat Development Board Housing Units, there is no transfer of ownership or possession to the Greater Chennai Corporation; that it is merely used for the purpose of work and the same is left as such once the contract period expires. 5. Therefore, the Applicant submitted th....
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....er, subject to the provisions of this Act, to acquire, hold, and dispose of property and may by the said name sue and be sued." 5. The Madras Municipal Corporation Act, 1919 was rechristened by The Tamil Nadu Act of 1996 as the Chennai City Municipal Corporation Act, 1919. 6. The Greater Chennai Corporation (GCC) is a "municipality" as defined under Article 243-P(e) read with Article 243Q. Therefore, they satisfied the second pre-condition for entitlement to the exemption under Serial No 3A of Notification 12/2017-Central Tax (Rate): The Supply rendered to a "local authority". (c) Supply is made in relation to a function entrusted to a Municipal Corporation under Article 243-W of the Constitution. 1. The applicant submitted that the third pre-condition for entitlement to the exemption 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. 2. 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 ....
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....itat Development Board" vide G.O.(Ms). No. 103, Housing and urban Development Department, dated 01.09.2021. Accordingly, the Government amended the Tamil Nadu Slum Areas (Improvement and Clearance) Act, 1971 (Tamil Nadu Act 11 of 1971), to provide a statutory footing to the aforesaid change in nomenclature of the Board. 8. The services supplied by the Applicant to the Greater Chennai Corporation are in relation to a function entrusted to a Municipal Corporation under Article 243-W of the Constitution in as much as they pertain to upkeeping and maintenance of the Tamil Nadu Urban Habitat Development Board Housing Units in the city of Chennai. 4. The applicant falls under the administrative control of State. The concerned authorities of the Centre and State were addressed to report if there are any pending proceedings against the applicant on the issues raised by the applicant in the ARA application and for comments on the issues raised. Remarks have been received from the jurisdictional State Authority stating that there are no pending proceedings on the questions raised in the Advance Ruling Application; that the classification of impugned services would be SAC 9997-Oth....
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....ral Goods and Services Tax Act, 2017, and the Tamil Nadu Goods and Services Tax Act, 2017, are liable for admission as they get covered under Section 97 (2) (b) of CGST/TNGST Act, 2017 under "Classification of goods and/or services or both and Applicability of a notification issued under the provisions of the Act". 6.3 We find that the applicant has entered into an agreement with Greater Chennai Corporation (GCC), Solid Waste Management Department vide SWMC No. A7/1362/2025 dt.02.06.2025 as per which work order has been issued to the applicant for upkeeping and maintenance of Tamil Nadu Urban Habitat Housing Board units in Zone 15-Outer Perumbakkam, Chennai. It has been stipulated therein for the applicant to provide the said services by deploying 369 personnel for sweeping and cleaning of all common areas on daily basis within the TNUHDB units; to collect wastage and garbage; to provide 375 units of 120Lt rotomac bins alongwith sweeping kits for each of the personnel for collecting garbage; to provide 31 units of 1100 1tr capacity compactor bins (for both dry and wet waste) at the entry of each housing unit; to segregate and dispose the collected waste in the compactor bin plac....
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....ng 9994: Sewage and waste collection, treatment and disposal and other environmental protection services Group 99942: Waste collection services 999423: General Waste collection services - residential 6.4.3. Further, as per the Explanatory Notes to Classification of Services, following is the scope of coverage of services under the heading SAC 999423: 999423 General waste collection services, residential This service code includes: i. general collection of waste, garbage, rubbish, refuse, trash, and commingled materials from residential locations, including curbside collection, back door collection, or automated collection on a flexible or regular schedule 6.4.4 In view of the above, we conclude that the services of upkeeping and maintenance of TNUHDB units at Perumbakkam by the applicant encompassing sweeping, cleaning, garbage removal in all common areas on daily basis within the would appropriately be classifiable under SAC 999423 - General Waste collection services - residential as proposed by the applicant. 6.5.1 Taking up next the applicant's query on admissibility of exemption contemplated in SI.No.3A of Notfn. No. 12/2017-CT(Rate)....
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.... 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" (c) On a perusal of the agreement with GCC, the applicant has to undertake upkeep and maintenance of common areas/spaces in the TNUHDB units in Perumbakkam predominantly involving cleaning and garbage removal activities. The welfare kits consisting of mask, gloves, caps etc., are part of specific requirement as dictated by the GCC to be supplied to the cleaning personnel as a safety measure. Further, the GCC also requires the applicant to provide other items like brooms, penkus, bins, bleaching powder etc., which are apparently consumables used in the process of rendering the cleaning service that are to be procured by the applicant at his own cost. Interestingly by the applicant's own admission/submission in the application 'with respect to the consumables, welfare kit used, there is no transfer of ownership or possession to the Greater Chennai Corporation and merely used for the purpose of ....