9911796707
TMI Blog2019 (6) TMI 1339X X X X Extracts X X X X X X X X Extracts X X X X ..... which is a local authority as defined under section 2(69) of the GST Act. The Applicant is made responsible for collection, segregation, storing, transport and disposal of municipal solid waste from the municipal area of the BMC. They will organize a house-to-house collection of municipal solid waste, collect waste from slums, hotels, slaughterhouses etc. They will segregate the non-bio-degradable and inert waste and dump it at the Landfill within the Project premise. The Applicant may build a suitable Processing and Composting Plant. The Applicant shall bear the expenditure for maintenance of the collection equipment and pay rental on the equipment taken on lease from the BMC. The consideration to be paid measures the work done in terms ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -6-2019 - MR. SYDNEY D SILVA, AND MR. PARTHASARATHI DEY, MEMBER Applicant s representative heard: Sri Jayesh Gupta, FCA Ms. Kruti Soni, ACA Preamble A person within the ambit of Section 100 (1) of the Central Goods and Services Act, 2017 or West Bengal Goods and Services Act, 2017 (hereinafter collectively called the GST Act ), if aggrieved by this Ruling, may appeal against it before the West Bengal Appellate Authority for Advance Ruling, constituted under Section 99 of the West Bengal Goods and Services Act, 2017, within a period of thirty days from the date of communication of this Ruling, or within such further time as mentioned in the proviso to Section 100 (2) of the GST Act. Every such Appeal s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is making exempt supplies only. 1.2 The questions raised are admissible under section 97(2) (a), (b) (f) of the GST Act. The Applicant declares that the questions are not pending before or have not been decided by any authority under any proceedings of the GST Act. The concerned officer from the Revenue has not objected to the admission of the application. The application is, therefore, admitted. 2. Submissions of the Applicant 2.1 Sl. No. 3 of the Exemption Notifications (Service) exempts from payment of GST any pure service (excluding works contract service or other composite supplies involving supply of any goods) provided to the Central Government, State Government or Union territory or local authorit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2.3 The recyclable and bio-degradable waste is used to manufacture organic manure in the plant set up. The machines have been partly taken on lease from the BMC. The Applicant supplies the organic manure and solid waste scrap if any to customers. Both the goods are exempt under Notification No. 2/2017 - CT (Rate) dated 28/06/2017 (corresponding State Notification No. 1126 - FT dated 28/06/2017), as amended from time to time [hereinafter collectively called Exemption Notifications (Goods)]. The Applicant argues that their entire turnover being that of exempt supplies, they are not required to get registration under the GST Act. 3. Observations and findings of the Bench 3.1 In its Circular No. 51/25/2018-GST dated 31/07/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Constitution. These functions are in the nature of public welfare service that the governments on their own, and sometimes through governmental authorities/entities, do provide to the citizens. When the activity is in relation to any such function, the supply to the governments or governmental authorities/entities or local authorities is exempt from paying GST under Sl.No. 3 or 3A of the Exemption Notifications (Service), provided it is either a pure service or a composite supply, where supply of goods does not constitute more than 25% of the value. 3.3 The Applicant s eligibility under Sl No. 3 or 3A of the Exemption Notifications (Service) should, therefore, be examined from three aspects: (1) whether the supply ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Constitution that discusses the powers, authority and responsibilities of a Municipality, refers to the functions listed under the Twelfth Schedule as may be entrusted to the above authority. Sl.No. 6 of the Twelfth Schedule refers to public health, sanitation, conservancy and solid waste management. The Applicant s supply to HMC is a function mentioned under Sl.No. 6 of the Twelfth Schedule. 3.7 The Applicant s service to BMC, therefore, is exempt under Sl No. 3 of the Exemption Notification. 3.8 The TDS Notifications have given effect to section 51 of the GST Act, specifying the persons under section 51 (1)(d) of the Act and have mandated and laid down the mechanism for deduction of TDS. These notifications, ther ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
