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TMI Blog2021 (11) TMI 150X X X X Extracts X X X X X X X X Extracts X X X X ..... removed. So, it may be inferred that the applicant's supply to HMC, which is a local authority as defined under section 2(69) of the GST Act, is a pure service. Whether the said services are in relation to any functions entrusted to a municipality under article 243W of the Constitution of India? - HELD THAT:- It transpires from above that the functions entrusted to a municipality as listed in the Twelfth Schedule include the functions like sanitation conservancy and solid waste management. The applicant's services to HMC is exempt under entry serial number 3 of the Exemption Notification. Section 51(1) of the GST Act provides that the Government may mandate inter alia a local authority to deduct TDS while making payment to a supplier of taxable goods or services or both. As the applicant is making an exempt supply to the HMC, the provisions of section 51 and, for that matter, the TDS Notifications do not apply to his supply. - Case Number 15 of 2021 Order No. 14/WBAAR/2021-22 - - - Dated:- 8-10-2021 - MR. BRAJESH KUMAR SINGH, AND MR. JOYJIT BANIK, MEMBER Applicant s representative heard : Mr. Aditya Singhania, Authorized Representative Preamble A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the notifications regarding TDS are applicable in his case. 1.4 The aforesaid questions on which the advance ruling is sought for are found to be covered under clause (a) and (b) of sub-section (2) of section 97 of the GST Act. 1.5 The applicant states that the questions raised in the application has neither been decided by nor is pending before any authority in his case under any provision of the GST Act. 1.6 The officer concerned from the Revenue has raised no objection to the admission of the application. 1.7 The application is, therefore, admitted. 2. Submission of the Applicant 2.1 The applicant draws attention to entry serial number 3 of the Exemption Notification by virtue of which, pure services (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 authority or a Governmental authority or a Government Entity 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, is exempted fro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 25% of the value of the said supply, (2) the recipient should be Central Government, State Government or Union territory or local authority or a Government authority or a Government entity and (3) the supply in relation to any function entrusted to a Panchayat or to a Municipality under the Constitution. 3.4 Therefore, the applicant s supply made to HMC is an exempt service under SI No 3 of the Exemption Notification. 3.5 The TDS Notification No 50/2018-Central Tax dated 13.09.2018 specifies the persons or category of persons for deduction of tax at source under Section 51(1)(d) of CGST Act, 2017. Therefore, this notification is solely applicable if the supply made by the applicant is in conformity with Section 51 of the said Act. Thus, if the applicant is making an exempt supply to the HMC, the provisions of Section 51 of the said Act do not apply. 4. Observations Findings of the Authority 4.1 We have gone through the records of the issue as well as submissions made by the authorised representative of the applicant during the course of personal hearing. We have also considered the submission made by the officer concerned from the Revenue. 4.2 The a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pt from paying GST under Sl No. 3 or 3A of the Exemption Notification, provided it is either a pure service or a composite supply, where supply of goods does not constitute more than 25% of the value. 4.3 In the instant case, the work order issued to the applicant describes the nature of the work as lifting and removing of daily garbage etc. accumulated from the vats, dumping yards, containers and other places on the roads, lanes and bye-lanes of HMC area. Further, from the copies of invoices and Payment Ledger as furnished by the authorized representative in course of personal hearing, it is found that the applicant has received payment against removing of garbage, road bumps, drain slits, rubbish by dumper with labour, fuel payloader . 4.4 The term pure services has not been defined under the Act. However, a bare reading of the description of services as specified in entry serial number 3 of the Exemption Notification denotes supply of services which does not involve any supply of goods can be regarded as pure services. It appears that in the instant case, the supplies do not involve any supply of goods. The applicant receives consideration only in respect of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ials and burial grounds; cremations, cremation grounds and electric crematoriums. 15. Cattie pounds; prevention of cruelty to animals. 16. Vital statistics including registration of births and deaths. 17. Public amenities including street lighting, parking lots, bus stops and public conveniences. 18. Regulation of slaughter houses and tanneries. 4.6 It transpires from above that the functions entrusted to a municipality as listed in the Twelfth Schedule include the functions like sanitation conservancy and solid waste management. We are therefore of the view that the applicant's services to HMC is exempt under entry serial number 3 of the Exemption Notification. 4.7 We also find that Section 51(1) of the GST Act provides that the Government may mandate inter alia a local authority to deduct TDS while making payment to a supplier of taxable goods or services or both. As the applicant is making an exempt supply to the HMC, the provisions of section 51 and, for that matter, the TDS Notifications do not apply to his supply. In view of the above discussions, we rule as under: RULING The applicant s supply to the Howrah Municipal Corporatio ..... 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