12% GST Applicable on Services of Disposal and Treatment of Bio Medical Waste collected from Clinical Establishment: AAR [Read Order]

In a recent decision, the Rajasthan bench of the Authority for Advance Ruling ( AAR ) observed that 12% Goods and Service Tax ( GST ) shall be Applicable on Services of Disposal and Treatment of Bio Medical Waste collected from Clinical Establishment.

The issue to be decided was whether the services of disposal and treatment of Bio-Medical Waste obtained from clinical establishments was liable to tax.

The applicant sought an advance ruling regarding the classification of services encompassed by SAC 999432 - Non-hazardous waste treatment and disposal services. The applicant is involved in the disposal and treatment of biomedical waste generated by clinical establishments at a facility allocated by the state government. They collect biomedical waste from accredited establishments and dispose of or treat it at their facility, charging a predetermined fee as per state guidelines. These services are categorized under Chapter Heading 009433 of the SAC codes as defined by GST laws.

The personal hearings were granted to the applicant on 16.11.2023 and 01.01.2024. CAAbhay Gangwal, appeared for on behallf of applicant for the personal hearing. He reiterated the submission already made in written submission and also submitted an application regarding correction of old para for seeking advance ruling over coverage of services covered under SAC 999433-"Non-hazardous waste treatment and disposal services to SAC 999432-"Hazardous waste treatment and disposal services

The AAR bench of Mahipal Singh (Central Tax member) and Mahesh Kumar Gowla ( State Tax member ) held that the service of disposal and treatment of Bio Medical obtained from clinical establishment (9994) was made taxable vide Notification No. 03/2022- Rate) dated 13.07.2022 (effective from by amending Notification No. 11/201 ICI (Rate) dated 28.06.2017 with a rate of 6% (CGST). Thus, 12% GST (6% SGST + 6% CGST) imposed on such services. Thus, the registered dealer is liable to pay GST on the aforesaid service from.

To Read the full text of the Order CLICK HERE

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