9911796707
TMI Blog2022 (7) TMI 505X X X X Extracts X X X X X X X X Extracts X X X X ..... imited (hereinafter referred to as applicant), registered under the AP Goods & Services Tax Act, 2017. 3. Brief Facts of the case: * M/s. Zigma Global Environ Solutions private Limited (herein after referred to as 'ZGES' are the service providers of Municipal Solid Waste (MSW) Management solutions. Zigma Global offers solutions involving segregation, treatment, recycling of Municipal Solid Waste (MSW) and thus clearing MSW landfills. * The applicant was successful in obtaining the 'Bid' called for by the Superintending Engineer, Tirumala Tirupati Devasthanams, Tirupati (hereinafter referred to as "TTD") for "Processing and disposal of the legacy municipal solid waste near Kakulamanu tippa, Tirumala through Bio-remediation & Bio-mining 'as is where is basis'. * Scope of work: The applicant is responsible for removal of legacy waste dumped (approximately 2,00,000 MT in the dumping yard at Kakulamanu tippa, Tirumala through bio-mining process on Design, Build , own and Operate (DBOO) concept in Tirumala Tirupati Devasthanams, Tirupati in scientific way in accordance with solid waste Management Rules 2016 (SWM Rules 2016), CPCB Guidelines for legacy Waste M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .2017 as amended? On Verification of basic information of the applicant, it is observed that the applicant falls under State jurisdiction, i.e. Assistant Commissioner (ST) Steel Plant Circle, Visakhapatnam Division. Accordingly, the application has been forwarded to the jurisdictional officer and a copy marked to the Central Tax authorities to offer their remarks as per Sec. 98 (1) of CGST /APGST Act 2017. In response, remarks are received from the State jurisdictional officer concerned stating that there are no proceedings pending with the applicant on the issues, for which the Advance Ruling sought by the applicant. 5. Applicant's Interpretation of Law: 5.1 Classification of the nature of supply: With reference to the classification of the supply provided by the applicant, the predominant characteristic of the work is 'Solid Waste Management" and the applicant is of the view that the services to be provided by them fall under SAC code No.9994 "sewage and waste collection, treatment and disposal and other environmental protection services" and in particular Group 99943-Waste treatment and disposal services" as per Annexure to Notification No.11/2017 Central Tax (Rate) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssion "Governmental Authority" means an authority or a board or any other body, - (i) set up by an Act of Parliament or a State Legislature; or (ii) established by any Government, with ninety percent or more participation by way of equity or control to carry out any function entrusted to a municipality under article 243w of the constitution. The functions entrusted to a municipality under the Twelfth schedule to article 243w of the constitution are as under: (a) Urban planning including town planning. ..................................................................... (f) public health, sanitation conservancy and solid waste management ..................................................................... 5.4 Regarding status of TTD, it is submitted: * TTD was established in 1932 as a result of the TTD Act of 1932. According to the act administration of the temple was vested in a committee of seven members and overseen by a paid Commissioner appointed by the Madras Government. Advising the committee were two advisory councils-one composed of priests and temple administrators to aid the committee with the operations of the Tirumala temple and another composed of farm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on belonging to the Scheduled Castes. (v) one shall be a woman: Provided further that a member representing category (iii), shall cease to hold office as soon as he ceases to be a member of the State Legislature. (provided also that the members mentioned at clauses (iv) (v) and (vi) shall hold office during the pleasure of the Government). From the above it is understood that Tirumala Tirupati Devasthanams, Tirupati squarely fall under the definition of "Governmental authority" as per explanation to clause (16) of section 2 of the integrated Goods and Services Tax Act, 2017 (13 of 2017), in as much as it is set up by an Act of a State Legislature namely - The A.P. Charitable & Hindu Religious Institutions & Endowments Act (1987). The functions entrusted to a municipality under the Twelfth Schedule to Article 243W of the Constitution are as under; (a) Urban planning including town planning ................................................................ (f) Public health, sanitation conservancy and solid waste management. ................................................................ (h) urban forestry, protection of the environment and promotion of ecological aspe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... scussion and Findings: We have examined the issues raised in the application. The taxability, classification of the services, applicable rate of tax, eligibility of exemption etc., for the Goods and Services supplied or to be supplied, as governed under the provisions of respective GST Acts are examined. The issue at hand is to decide the Classification of the services provided by the applicant. The applicant claims that the 'Solid Waste Management" services to be provided by them fall under SAC code No.9994 "sewage and waste collection, treatment and disposal and other environmental protection services" and in particular Group 99943-Waste treatment and disposal services" as per Annexure to Notification No.11/2017 Central Tax (Rate) dated 28.06.2017. We concur with the opinion of the applicant after a thorough examination of the nature of the services of the applicant by classifying them under SI.No.32 of Heading 9994 of Notification No: 11/2017 Central Tax (Rate) dt. 28.06.2017. Subsequently now we examine whether services provided by the applicant is exempted under SI.No.3 of Notification 12/2017 dated 28.07.2017 as amended. SI.No.3 of the above notification describes p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Whether the applicant possesses 90% or more participation by the Government by way of equity or control. Constitution of Board of Trustees - It is constituted by the Government of not more than (twenty-nine members), including the chairman, to be appointed by the Government, of whom:- The Commissioner shall be a member, ex-officio: (i-b) the Chairman, Tirupati Urban Development Authority constituted under the Andhra Pradesh Urban Areas (Development) Act, 1975 (Act 1 of 1975) shall be a member Ex-officio. (ii) the Executive Officer, shall be the Member -Secretary, Ex-Officio. (iii) three shall be members of the State Legislature. (iv) one shall be a person belonging to the Scheduled Castes. (v) one shall be a woman Provided further that a member representing category (iii) shall cease to hold office as soon as he ceases to be a member of the State Legislature. (provided also that the members mentioned at clauses (iv) (v) and (vi) shall hold office during the pleasure of the Government. Hence the parameter of 99% or more participation by the government by way of control is meted out in this case. (iii) Now we examine whether the functions carried out by TTD are mean ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment Entity shall no longer be exempt from January 1, 2022 and shall attract GST as applicable under Services Rate Notification." Hence, services provided by the Applicant are no longer exempted under SI.No.3 of Notification No.12/2017 dated 28.07.2017 as amended further by Notification No. 16/2021 - Central Tax (Rate), dated: November, 18, 2021. RULING (Under Section 98 of Central Goods and Services Tax Act, 2017 and the Andhra Pradesh Goods and Services Tax Act, 2017) Question: Classification of the services Viz., "Processing and disposal of the legacy municipal solid waste near Kakulamanu Tippa, Tirumala through Bio-remediation & Bio- mining on "as is where is basis" to be provided by the applicant to the Superintendent Engineer, Tirumala Tirupati Devasthanams, Tirupati. Answer: 'Solid Waste Management" services to be provided by them fall under SAC code No.9994 "sewage and waste collection, treatment and disposal and other environmental protection services" and in particular Group 99943-Waste treatment and disposal services" as per Annexure to Notification No.11/2017 Central Tax (Rate) dated 28.06.2017. Question: Whether aforesaid services provided by the applicant is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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