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Home Case Index All Cases GST GST + AAR GST - 2019 (6) TMI AAR This

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2019 (6) TMI 1339 - AAR - GST


Issues:
1. Admissibility of the Application
2. Submissions of the Applicant
3. Observations and findings of the Bench

Admissibility of the Application:
The Applicant provides conservancy/solid waste management services to a municipal corporation and seeks clarification on the applicability of notifications regarding TDS and the requirement for GST registration. The questions raised are deemed admissible under the GST Act, as confirmed by the concerned revenue officer, leading to the admission of the application.

Submissions of the Applicant:
The Applicant argues that their services fall under exemptions provided for pure services to local authorities and composite supplies involving goods and services. They maintain that their activities align with functions entrusted to a Municipality under the Constitution, making them eligible for exemption under specific notifications. The Applicant further explains their service details, including waste collection, segregation, disposal, and organic manure production, all falling under exempt categories.

Observations and findings of the Bench:
The Bench analyzes the Circular clarifying service tax exemptions continuing under GST for services to government entities, local authorities, and public welfare functions. The Applicant's eligibility for exemption is assessed based on the nature of supply, recipient, and function under the Constitution. The Bench concludes that the Applicant's services to the municipal corporation qualify as pure services under the exemption notifications. Additionally, the TDS notifications are found inapplicable due to the nature of the Applicant's exempt supplies. The classification and exemption status of the goods supplied by the Applicant are also considered, determining the Applicant's exemption from GST registration if their turnover solely consists of exempt supplies.

The ruling confirms the Applicant's supply to the municipal corporation as exempt from GST, clarifies the inapplicability of TDS provisions to the exempt supply, and states that GST registration is not required if the turnover comprises entirely of exempt supplies.

 

 

 

 

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