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TMI Blog2022 (10) TMI 779X X X X Extracts X X X X X X X X Extracts X X X X ..... he exempt notification or not? - HELD THAT:- The applicability of serial number 3 of the notification which exempts pure services 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. The term pure services has not been defined under the GST Act. However, a bare reading of the description of services as specified in serial number 3 of the said notification denotes that supply of services which does not involve any supply of goods can be regarded as pure services. The scope of work requires the applicant, inter alia, to construct sanitary landfill which involves supply of goods. Further, the applicant requires to sell and dispose of bye-products, recyclable reusable materials (fertilizers and alternative fuel) which also involve supply of packing materials. The applicant himself has declared that the work includes packaging, distribution sales point (for fertilizers alternative fuel. As a result, the instant supply of services ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ved in the instant case thus fails to qualify for exemption vide serial number 3 or 3A of the Exempt Notification. - Case Number WBAAR 11 of 2022, Order Number 10/WBAAR/2022-23 - - - Dated:- 23-9-2022 - MR. BRAJESH KUMAR SINGH, AND MR. JOYJIT BANIK, MEMBER Applicant s representative heard : Mr. Biswarup Daripa, Authorized Representative Preamble A person within the ambit of Section 100 (1) of the Central Goods and Services Tax Act, 2017 or West Bengal Goods and Services Tax 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 Tax 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 shall be filed in accordance with Section 100 (3) of the GST Act and the Rules prescribed thereunder, and the Regulations prescribed by the West Bengal Authority for Advance Ruling Regulations, 2018. 1.1 At the outset, we would like to make it clea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om the said agreement is as follows: The Municipal Corporation/ ULB shall provide and hand over an encroachment free waste processing site and sanitary landfill site of required area. Municipal Corporation/ ULB shall also provide approach road, Water Connection, Street Lighting up to the outside of boundary line of waste processing site. Municipal Corporation/the ULB shall make arrangement to transport the collected segregated waste up to the Waste Processing Site. Provide assistance to the agency towards getting any types of clearance/ NOC or electric / water connections etc. Conduct capacity building workshops and through IE C spread the awareness for waste segregation at source. 2.3 The applicant, on the other hand, has been awarded to carry out following activities as mentioned in the scope of work: Design, Build, Finance, Operate and Transfer (DBFOT) of required capacity (based on total wet waste generation as on 2020 + 10%) of Municipal Solid Waste Processing facility based on Composting and/or Bio-methanation technology with pre-sorting facility during the contract period and Operation Maintenance for 10 years (Renewable based on eff ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, wooden scrap, iron scrap, construction debris) and for fuel processing unit (plastics). Waste Processing Material Management System (8) Process Units (1) for compost fertilizers with selected wet waste (9) Process Units (2) for reprocessing of plastic wastes (PP/PE/LDPE/HDPE) to AF (10) Process Units (3) for land filing and further disposal (11) Material Management Workers uniform (Shoes, Cap/Helmet, Reflectors, Hand Gloves, Mask etc) Waste handling equipment (trowel, poly packages, pow spade, spatula etc) Emergency maintenance equipment and electrical spares Organic vermi-compost process chemical molecule compounds Fertilizers packaging materials (30kg 50 kg capacity LPP bags) Fuel for DG set Ignition fuel fir reprocessing unit Other raw materials for reprocessing unit(Catalyst material) Packaging Jar/Container for AF distribution to channel partners Sanitizing materials equipment (12) Workshop (for handling vehicles equipment) (13) Warehouse for packed fertilizers (14) Storage Unit for alternative fuel (produced from reprocessing of waste plastic) (15) Packaging, Dist ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... prospective supply of the setup as per the transfer clause of the work order. It appears from the above that the applicant is probably going to make a supply of a composite service as in Sec 2(30) of the CGST Act 2017 consisting of i) Construction services under Heading 9954 and ii) Sewage and waste collection, treatment and disposal and other environmental protection services under Heading 9994, the latter being the principal supply. Hence, as per Sec 8(a) ibid, the supply should attract tax as applicable on supply of Sewage and waste collection, treatment and disposal and other environmental protection services under Heading 9994. However, this opinion is based on certain assumptions as apparent from the work order only and is subject to revision if further details are made available by production of other relevant documents. 3.2: From the above response, the supply is classifiable as a composite supply attracting tax as applicable on Heading 9994, which is 9% CGST and 9% SGST. The question of whether any exemptions are available in this case may also be examined here. It is seen that pure services (excluding works contract service or other composite supplies involving su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 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 4.3 To determine the taxability of supply of services involved in the instant case, we therefore proceed to analyze whether the services to be provided by the applicant can qualify for exemption under the aforesaid entries of the exempt notification or not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed further to decide whether the supply by the applicant to SUDA can be treated as a supply provided to the Central Government, State Government or local authority and whether the same is in relation to any function entrusted to a Panchayat under article 243G or to a Municipality under article 243W of the Constitution. From the documents produced before us, we find that the applicant has received work order for a number of municipalities in West Bengal under Swachh Bharat Mission/Mission Nirmal Bangla. The functions entrusted to a municipality under the Twelfth Schedule to Article 243W inter alia contain Public health, sanitation conservancy and solid waste management. We, therefore, hold that the supply involved in the instant case is in relation to a function entrusted to a Municipality under article 243W of the Constitution. 4.6 The issue now remains with us is to decide whether the supply to be made by the applicant can be regarded as a supply to the Central Government, State Government or local authority. We are of the opinion that the instant supply to SUDA cannot be held as supply to the government since we find from the official website of State Urban Development Agenc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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